Emami Paper Mills Q1 FY27: PAT up 512%, margin 14.8%

Key takeaway from the June-quarter print

Emami Paper Mills Limited (NSE: EMAMIPAP) reported a sharp year-on-year improvement in earnings for the quarter ended June 30, 2026 (Q1 FY27), helped by higher revenue and a steep expansion in operating margins. Revenue from operations rose to ₹560.16 crore, while profit after tax (PAT) increased to ₹38.61 crore from a low base in the same quarter last year.

The operating turnaround was visible in EBITDA, which more than doubled to ₹82.9 crore, pushing the EBITDA margin to 14.8% versus 8.2% a year ago. The numbers indicate a significantly stronger operating outcome than the prior-year quarter, even as the company continues to carry meaningful finance costs.

What the company reported for Q1 FY27

For Q1 FY27, Emami Paper Mills recorded revenue from operations of ₹560.16 crore, up from ₹459.76 crore in Q1 FY26. Net profit for the quarter came in at ₹38.61 crore compared with ₹6.31 crore in the year-ago period.

Profit before tax (PBT) rose to ₹53.26 crore from ₹9.35 crore in Q1 FY26, reflecting the combined impact of higher operating profit and improved profitability across the income statement. The company also reported total comprehensive income of ₹39.80 crore in Q1 FY27, up from ₹5.42 crore in Q1 FY26.

On per-share metrics, basic EPS stood at ₹6.21 compared with ₹0.84 a year earlier, while diluted EPS was ₹5.69 versus ₹0.81 in Q1 FY26.

Margin expansion stood out

The quarter showed a sharp improvement in operating profitability. EBITDA margin widened to 14.8% from 8.2% year-on-year, an expansion of 660 basis points. In absolute terms, EBITDA increased to ₹82.9 crore from ₹37.7 crore in the same quarter last year.

The margin change matters because it suggests the revenue growth translated into significantly higher operating profit. The company’s PAT margin was reported at 6.89% for Q1 FY27, compared with 1.37% in Q1 FY26.

Sequential cues: QoQ movement from Q4 FY26

The company also disclosed quarter-on-quarter (QoQ) comparisons against Q4 FY26. Revenue from operations increased 12.84% QoQ to ₹560.16 crore from ₹496.41 crore in Q4 FY26.

PBT expanded 12.15% QoQ to ₹53.26 crore from ₹47.49 crore, while PAT rose 22.57% QoQ to ₹38.61 crore from ₹31.50 crore. Basic EPS increased to ₹6.21 from ₹5.01 in Q4 FY26.

Debt and other P&L items investors tracked

Emami Paper Mills reported interest costs of ₹16.96 crore in Q1 FY27, marginally different from ₹17.05 crore in Q1 FY26, pointing to a continuing debt servicing load.

The company also assessed an exceptional item of ₹1.25 crore related to incremental retiral obligations arising from India’s new labour codes that became effective on November 21, 2025.

Tax for the quarter was stated at ₹14.65 crore, implying an effective tax rate of 27.51% based on the company’s disclosure alongside its Q1 FY27 numbers.

Preference-share redemption plan worth ₹123.75 crore

Alongside the quarterly performance, the Board approved redemption of preference shares totalling ₹123.75 crore. The redemptions are scheduled across two series and are due in July and September 2026, as per the company’s disclosure.

This step was highlighted as part of the company’s effort to reduce preference share liabilities.

Board and corporate actions: what is scheduled

The company stated that its board of directors is scheduled to meet on 2026-08-04 to consider audited financial results and recommend dividend for FY2026.

Separately, Emami Paper Mills also disclosed that the board considered and approved the standalone unaudited financial results for the quarter ended 30 June 2026 at a meeting held on 22 July 2026. These two disclosures relate to different agenda items and periods, with the Q1 FY27 numbers presented as unaudited and the later meeting date tied to audited results and dividend consideration for FY2026.

Market snapshot: trading and valuation markers

The stock’s indicated current market price (CMP) in the provided details was ₹405.0. The company’s market capitalisation was stated at ₹608.00 crore.

The broader paper pack was also noted to have rallied in Wednesday’s trade after the company reported a large jump in June-quarter profit, though no specific index or stock movement percentages were provided.

Financial scorecard (₹ crore, unless stated)

Preference-share redemption schedule

Why the results matter

The Q1 FY27 performance reflects a clear year-on-year reset in operating outcomes, with both revenue growth and margin expansion contributing to a steep rise in profit. EBITDA growth, combined with a 660 bps improvement in margin, translated into a much higher PBT and PAT compared with Q1 FY26.

At the same time, the disclosures underline two ongoing balance-sheet and governance items investors typically track: interest costs that remain elevated and the continued reduction of preference share liabilities via scheduled redemptions.

What to watch next

Investors will watch the board meeting scheduled for 2026-08-04 for updates on audited financial results and any dividend recommendation for FY2026. Separately, the market will track whether the improved operating margin levels seen in Q1 FY27 sustain in subsequent quarters, alongside progress on the announced preference-share redemptions due in July and September 2026.