Synopsis: Paper stock hit the 20 percent upper circuit after the company reported a 512 percent YoY jump in Q1 FY27 net profit, supported by strong revenue and EBITDA growth.
The share of this company, which is engaged in the manufacturing of newsprint, writing and printing paper, and multi-layer coated packaging boards, came into focus after reporting strong Q1 FY27 results.
With a market capitalization of Rs 717 crore, Emami Paper Mills Ltd’s share on Wednesday made a day high of Rs 118.46 per share, up by 20 percent, hitting upper circuit in the day’s trade from its previous close price of Rs 98.72 per share. The share of this company has given 17.32 percent over the last year.
Result Overview
QoQ View
Revenue grew by 12.90 percent to Rs 560 crore in Q1 FY27 from Rs 496 crore in Q4 FY26, and EBIDT grew by 33.28 percent to Rs 82.9 crore in Q1 FY27 from Rs 62.2 crore in Q4 FY26. Accompanied by a net profit growth of 22.54 percent to Rs 38.6 crore in Q1 FY27 from Rs 31.5 crore in Q4 FY26, resulting in an EPS growth of 22.46 percent to Rs 6.38 per share in Q1 FY27 from Rs 5.21 per share in Q4 FY26.
YoY View
Revenue grew by 22 percent YoY to Rs 560 crore in Q1 FY27 from Rs 460 crore in Q1 FY26, and EBIDT grew by 120 percent to Rs 82.9 crore in Q1 FY27 from Rs 37.7 crore in Q1 FY26. Accompanied by a net profit growth of 512 percent to Rs 38.6 crore in Q1 FY27 from Rs 6.31 crore in Q1 FY26, resulting in an EPS growth of 513 percent to Rs 6.38 per share in Q1 FY27 from Rs 1.04 per share in Q1 FY26.
Q1 Operational Highlight
Operating Performance
The company’s cost of materials consumed increased to Rs 352.84 crore in Q1 FY27 from Rs 312.30 crore in Q1 FY26, registering a 13 percent YoY rise. The increase was in line with higher business activity during the quarter.
Profitability & Finance Costs
Finance costs remained almost unchanged at Rs 16.96 crore in Q1 FY27 compared to Rs 17.05 crore in Q1 FY26. At the same time, profit before tax (PBT) jumped sharply to Rs 53.26 crore from Rs 9.35 crore, reflecting a strong improvement in overall profitability.
Promoter Holding
Promoter confidence in the company remained strong during the quarter. As of Q1 FY27, Emami Limited held a 13.13 percent stake in the company, indicating continued promoter backing.
Flexible manufacturing operations: The company’s manufacturing facilities can switch between newsprint, writing & printing paper, and kraft paper, enabling it to respond to changing market demand.
About the Company
Emami Paper Mills Ltd is a prominent Indian manufacturer of newsprint, writing and printing paper, and multi-layer coated packaging boards. Headquartered in Kolkata, West Bengal, and part of the diversified Emami Group, the company operates state-of-the-art manufacturing facilities in Balasore, Odisha.
The company has a strong manufacturing base with an annual production capacity of 200,000 metric tonnes of packaging boards and 140,000 metric tonnes of newsprint. This makes it one of the leading paper manufacturers in India with a diversified product portfolio.
The company is among the top 10 paper manufacturers in India, with a presence across writing and printing paper, packaging boards, and newsprint. It also exports its products to Bangladesh, Vietnam, the Middle East, and Thailand, with exports contributing around 8 percent of its overall business.
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