Emami Paper Q1 FY27: Profit up 512%, margin 14.8%

Key takeaway from the June quarter

Emami Paper Mills reported a sharp improvement in profitability for Q1 FY27 (quarter ended June 30, 2026), supported by stronger revenue and a meaningful expansion in operating margins. Revenue from operations increased year-on-year to ₹560.16 crore from ₹459.76 crore in Q1 FY26. Profitability improved even faster than revenue, with net profit rising to ₹38.61 crore from ₹6.31 crore in the year-ago quarter. EBITDA more than doubled to ₹82.9 crore from ₹37.7 crore, taking the EBITDA margin to 14.8% from 8.2%. The company also disclosed steps to reduce preference share liabilities, with redemption approvals aggregating ₹123.75 crore. Separately, the board of directors is scheduled to meet on 2026-08-04 to consider audited financial results and recommend a dividend for FY2026.

What the company reported in Q1 FY27

The company reported standalone unaudited financial results for the June quarter. Revenue from operations stood at ₹560.16 crore, representing a 21.83% to 21.84% year-on-year increase versus ₹459.76 crore in Q1 FY26. Total income for the quarter was reported at ₹560.37 crore, compared with ₹461.36 crore in the corresponding quarter last year. Profit before tax (PBT) improved to ₹53.26 crore from ₹9.35 crore a year earlier. After tax of ₹14.65 crore (effective tax rate of 27.51%), profit after tax (PAT) was ₹38.61 crore. On profitability ratios, the company reported a PAT margin of 6.89% versus 1.37% in Q1 FY26. Total comprehensive income was ₹39.80 crore for Q1 FY27, up from ₹5.42 crore in Q1 FY26.

EBITDA surge and the margin step-up

EBITDA for Q1 FY27 came in at ₹82.9 crore, compared with ₹37.7 crore in Q1 FY26. This more-than-doubling of operating profit translated into a sizable margin expansion. EBITDA margin widened to 14.8% in Q1 FY27 from 8.2% in Q1 FY26, an expansion of 660 basis points year-on-year. The company also reported operating profit before depreciation, interest and tax (excluding other income) at ₹82.94 crore, which corresponds to an operating margin of 14.81%. For comparison, the same operating margin metric was 8.20% in Q1 FY26 and 12.52% in Q4 FY26. The reported numbers indicate that operating profitability improved materially versus both the year-ago period and the immediately preceding quarter. This margin recovery is a central feature of the quarter’s outcome.

Sequential (QoQ) trend: growth versus Q4 FY26

The results note a sequential improvement from Q4 FY26 on several lines. Revenue from operations increased to ₹560.16 crore in Q1 FY27 from ₹496.41 crore in Q4 FY26, which was described as a 12.84% quarter-on-quarter rise. Total income increased to ₹560.37 crore from ₹510.19 crore in Q4 FY26, reflecting a 9.84% QoQ expansion. PBT increased to ₹53.26 crore from ₹47.49 crore, and PAT rose to ₹38.61 crore from ₹31.50 crore. Total comprehensive income also increased to ₹39.80 crore from ₹21.70 crore in Q4 FY26. These sequential comparisons provide context that the quarter’s improvement was not limited to a low base of Q1 FY26.

Interest cost and the role of financing

The company reported interest costs of ₹16.96 crore in Q1 FY27, marginally higher than ₹17.05 crore in Q1 FY26. The disclosure highlights that financing costs remained elevated, reflecting the company’s debt burden. With operating profit rising sharply, the impact of interest on net profitability appears less constraining than it was a year ago, based on the scale of improvement in PBT and PAT. Still, the interest line remains meaningful in absolute terms and is a number investors typically track in relation to operating profit and cash flows. Any change in the capital structure can influence this line over time. In this context, the preference share redemption plan is an additional balance-sheet related item to watch.

Preference share redemption: ₹123.75 crore approved

Alongside the quarterly results, the board approved the redemption of preference shares totaling ₹123.75 crore. The schedule provided includes two series with specified due dates. The disclosure is relevant for investors because it directly relates to the company’s preference share liabilities and the timing of repayments. It also provides clarity on the quantum and timing of the outflows linked to these instruments. The total redemption amount stated in the schedule is ₹123.75 crore. The table below captures the redemption details as disclosed.

EPS and shareholder profitability metrics

On per-share profitability, basic EPS for Q1 FY27 was ₹6.21 compared with ₹0.84 in Q1 FY26. Diluted EPS was ₹5.69 for Q1 FY27 compared with ₹0.81 in the year-ago quarter. The large year-on-year change in EPS mirrors the jump in net profit for the quarter. The company also referenced face value of ₹2 per share for the EPS disclosure. These figures are often used by the market to compare profitability across periods and to benchmark performance versus peers. In the context of the quarter, the EPS improvement reinforces the scale of the earnings recovery.

Market snapshot: price levels and market value referenced

The update referenced a current market price (CMP) of ₹405.0. It also cited a market capitalisation of ₹608.00 crore. Separately, the report noted that paper stocks rallied in Wednesday’s trade after Emami Paper Mills reported a six-fold jump in June quarter net profit, driven by growth in revenue. These references set the market context around the results release. However, the quarter’s reported numbers remain the core driver of the narrative in the filing and summaries.

Key financials at a glance

The table below summarises the key operating and profitability metrics disclosed for Q1 FY27 versus Q1 FY26.

Why this quarter matters for investors

The Q1 FY27 numbers show a combination of revenue growth and a sharp expansion in operating profitability, reflected in the move in EBITDA margin to 14.8%. The year-on-year rise in PAT to ₹38.61 crore from ₹6.31 crore indicates that incremental revenue translated into disproportionately higher earnings during the quarter. The improvement in PBT to ₹53.26 crore provides additional confirmation that operating performance, after accounting for interest, was stronger than the year-ago period. Disclosures around preference share redemptions totaling ₹123.75 crore add an important balance-sheet angle for investors tracking liabilities and scheduled payments. With basic EPS at ₹6.21 and diluted EPS at ₹5.69, the earnings momentum is visible on a per-share basis as well.

Conclusion and what to track next

Emami Paper Mills’ Q1 FY27 performance was defined by higher revenue, more-than-doubled EBITDA, and a strong jump in net profit, alongside a notable improvement in margins. The company also laid out a clear preference share redemption schedule totaling ₹123.75 crore. Investors will track follow-through in operating margins, interest costs, and the execution of the announced redemptions. The board meeting scheduled for 2026-08-04 to consider audited financial results and recommend a dividend for FY2026 is the next stated corporate event in the update.