West Coast Paper Mills reported a 145.4% surge in net profit to ₹133.5 crore for the June quarter, led by a sharp recovery in its telecommunications cable business. While operational performance improved, investors are keeping an eye on the production status of its subsidiary, Andhra Paper, following recent labor issues.
West Coast Paper Mills Ltd. delivered a strong financial performance for the first quarter of the 2026-27 fiscal year, with consolidated net profit rising significantly to ₹133.5 crore. This is a 145.4% increase compared to the ₹54.4 crore profit reported in the same quarter last year. The company's shares closed 3.32% higher at ₹616.90 on Wednesday, reflecting market reaction to the results.
The main driver behind this profit growth was the company's telecommunications cable segment. While the core paper and paperboard business showed steady, modest growth, the cable division saw revenue more than double to ₹152.2 crore from ₹73.9 crore in the year-ago period. The segment results, which measure profitability, saw a dramatic increase to ₹74 crore, up from just ₹0.45 crore in the previous year. This improvement in the product mix helped the company expand its EBITDA margin to 19.4%, compared to 11.6% in the same quarter last year.
Despite the positive performance in the cable business, the company’s operations faced challenges in its subsidiary, Andhra Paper Ltd. The Kadiyam unit, a key facility, experienced production disruptions due to a labor strike by contract workers that began in late April. This led to a lockout at the facility in May. Although the lockout was lifted on May 29, manufacturing operations were not fully restored until mid-July. According to company filings, the unit is currently operating at approximately 93% of its normal capacity, and management is focused on restoring full operations.
Investors are now focusing on how the company manages ongoing business risks. The paper industry often faces pressure from the fluctuating cost of wood pulp, which is a major raw material. Additionally, the industry is sensitive to competition from low-cost paper imports, which can influence local pricing. Maintaining the strong margins seen in the latest quarter will depend on the company’s ability to manage these input costs and navigate competitive pricing pressures.
Looking ahead, the next important monitorable will be the full stabilization of production at the Andhra Paper Kadiyam unit. Shareholders will also be watching to see if the high profitability in the telecommunications cable segment can be sustained in the coming quarters, as the company works to balance its traditional paper business with this growing vertical.