West Coast Paper Mills Reports Full Year Results, Recommends Dividend

West Coast Paper Mills Ltd. has released its audited financial results for the year ending March 31, 2026. The company achieved a standalone revenue of ₹2,498.49 crore and a standalone net profit of ₹153.53 crore.

On a consolidated basis, which includes its subsidiary operations, West Coast Paper Mills reported revenue of ₹4,278.79 crore and a net profit attributable to owners of ₹150.60 crore.

Dividend Payout Amidst Operational Challenges

The company's Board of Directors has recommended a dividend of ₹3 per share, representing 150% of the face value of ₹2. This payout is subject to shareholder approval and signals a return of capital to investors.

However, these positive financial results are overshadowed by an ongoing lockout at its key subsidiary, Andhra Paper Limited. Operations at Andhra Paper's Kadiyam plant were halted by a strike initiated by contract workmen on April 27, 2026. In response, the company declared a lockout on May 1, 2026, which remained in effect at the time of the board meeting.

Leadership Continuity Approved

In addition to financial reporting, the Board of Directors also approved key re-appointments, including Shri Prakash Kacholia, Shri Rajendra Jain, and Shri Virendraa Bangur. These appointments, pending shareholder consent, are intended to ensure leadership stability.

Key Risks to Monitor

The primary concern for West Coast Paper Mills is the resolution of the industrial dispute and the subsequent lifting of the lockout at Andhra Paper Limited's Kadiyam facility. A prolonged shutdown could significantly impact production, revenue, and overall profitability for the subsidiary, thus affecting the consolidated financial performance of the parent company.

Industry Context

While specific peer financial data was not detailed, the paper industry typically navigates challenges such as fluctuating demand, volatile raw material costs, and strict environmental regulations. The operational disruption at Andhra Paper Mills could potentially place West Coast Paper Mills at a competitive disadvantage compared to industry peers operating without such significant disruptions.

Future Outlook

Investors will be closely watching for updates on the resolution of the lockout at Andhra Paper Limited. The ability to resume normal operations quickly will be critical in assessing the future financial trajectory of West Coast Paper Mills. Future financial results will provide key insights into the impact of this ongoing operational issue.