West Coast Paper Mills Reports Strong Q4 Results, But Annual Profit Falls

West Coast Paper Mills announced its financial results for the fourth quarter and full year ended March 31, 2026. The company's standalone net profit for the quarter surged by 18.05% to ₹48.86 crore, up from ₹41.39 crore in the same period last year. Consolidated net profit also showed a healthy increase of 16.97%, reaching ₹53.98 crore compared to ₹46.15 crore year-on-year.

Positive Quarterly Performance and Shareholder Returns

The robust quarterly performance suggests recent operational improvements, potentially due to better volumes and product mix, according to management. The proposed dividend of ₹3 per share, representing 150% of the face value, offers a direct financial benefit to shareholders and signals board confidence in the company's short-term outlook.

Full-Year Profitability Sees Significant Drop

Despite the strong quarterly showing, the full fiscal year presents a contrasting picture. Standalone net profit for FY26 declined to ₹153.53 crore from ₹284.71 crore in FY25. Similarly, consolidated net profit fell to ₹155.73 crore from ₹335.64 crore in the prior fiscal year. These figures highlight underlying challenges that impacted overall profitability throughout the year.

Operational Updates and Key Concerns

Investors can expect a dividend payout, pending shareholder approval. Management attributed the quarterly profit increase to improved operational efficiency and stabilization in its cable division. However, a major concern is the ongoing lockout at its subsidiary, Andhra Paper Limited's Kadiyam plant, which began on May 1, 2026, following a strike by contract workers. This situation poses a risk to production and could affect costs.

Key Risks and Future Monitoring

The primary risk remains the unresolved lockout at the Andhra Paper Limited plant, which could disrupt operations. Investors will be closely watching how the company manages this situation and its impact on finances. The substantial decrease in full-year profits compared to FY25 also requires careful observation moving forward.

Financial Highlights (Year Ended March 31, 2026)

Standalone Quarterly Performance:

• Revenue from operations: ₹707.33 crore (up 12.09% year-over-year)
• Net Profit After Tax: ₹48.86 crore (up 18.05% year-over-year)

Consolidated Quarterly Performance:

• Revenue from operations: ₹1,245.30 crore (up 19.59% year-over-year)
• Net Profit After Tax: ₹53.98 crore (up 16.97% year-over-year)

Standalone Annual Performance:

• Net Profit After Tax: ₹153.53 crore (down from ₹284.71 crore in FY25)

Consolidated Annual Performance:

• Net Profit After Tax: ₹155.73 crore (down from ₹335.64 crore in FY25)

What to Watch Next

Future attention will be on the resolution of the lockout at the subsidiary's plant and its financial implications. The company's ability to maintain its quarterly growth momentum and enhance full-year profitability in the upcoming fiscal year will be critical for investor sentiment.