WSTCSTPAPR - West Coast Paper

📊 NSE: WSTCSTPAPR 🏢 Paper 📅 Last Updated: 12/14/2025 15:16

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for FY25 was INR 4,076 Cr, a moderation of 8.5% YoY. The Paper & Paper Board segment contributes 93% of standalone revenue, while the Cable Business contributes 7% (INR 189 Cr in FY24). H1 FY26 revenue remained flat at INR 1,997.67 Cr compared to INR 2,005.15 Cr in H1 FY25.

Geographic Revenue Split

The company maintains a pan-India marketing presence. Exports contribute approximately 8% of revenue for the subsidiary Andhra Paper Limited (APL).

Profitability Margins

Operating Profit Margin (OPM) declined from 24.99% in FY24 to 13.93% in FY25. Net Profit Margin fell from 18.15% in FY24 to 11.34% in FY25. H1 FY26 OPM further moderated to 8.9% from 15.8% in H1 FY25 due to pricing pressure and high wood costs.

EBITDA Margin

Consolidated EBITDA margin for 9M FY25 was 17.8%, a significant drop from 29.6% in 9M FY24. EBITDA for 9M FY25 stood at INR 566 Cr, down 45.3% YoY.

Capital Expenditure

Planned consolidated capex of INR 350-450 Cr in FY26 for a new tissue plant and machinery upgrades. A major long-term expansion of over INR 2,000 Cr is planned for the APL subsidiary to add 1.5-2.0 lakh MTPA capacity.

Credit Rating & Borrowing

Maintains a strong credit rating of Long Term AA/Stable and Short Term A1+ from ICRA. The company has low debt dependence with a Gross Debt/Equity ratio of 0.06x and negative Net Debt/Equity.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Wood (major cost driver), Virgin Pulp (200,000 TPA in-house capacity), Chemicals, and International Coal.

Import Sources

Wood is primarily sourced domestically; coal and certain chemicals are subject to international price trends and imports.

Key Suppliers

Not specifically named, but the company manages an extensive network for wood procurement and international commodity sourcing.

Capacity Expansion

Current combined capacity is approximately 5.8 lakh MTPA (3.2 lakh MTPA at Dandeli and 2.6 lakh MTPA at APL). Planned expansion at APL will add 1.5-2.0 lakh MTPA beyond FY27.

Raw Material Costs

Significant rise in wood prices led to a 44.26% decrease in operating profit margins in FY25. Raw material costs for 9M FY25 were INR 1,880 Cr compared to INR 1,622 Cr in 9M FY24.

Manufacturing Efficiency

Maintains robust capacity utilization; however, Q2 FY26 efficiency was impacted by a 14-day planned maintenance shutdown and labor strike at APL.

Logistics & Distribution

Distribution is managed through an extensive pan-India dealership network; costs are included in 'Other Expenses' which moderated by 10.7% in 9M FY25.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth will be driven by a INR 2,000 Cr capacity expansion at APL (adding 1.5-2.0 lakh MTPA), the launch of a new tissue plant in FY26, and a strategic shift toward higher-margin specialized paper products.

Products & Services

Writing paper, printing paper, cupstocks, specialized paper, optical fibre cables (OFC), telephone cables, and power cables.

Brand Portfolio

West Coast Paper, Andhra Paper.

New Products/Services

New tissue paper production line expected to contribute to revenue following the FY26 capex completion.

Market Expansion

Seeking geographical expansion opportunities beyond current Karnataka and Andhra Pradesh hubs to leverage its pan-India marketing network.

Market Share & Ranking

One of the oldest and largest producers in India with a dominant position in the domestic Writing and Printing Paper (WPP) industry.

Strategic Alliances

Acquired a 72.20% stake in Andhra Paper Limited (APL) in 2019 to consolidate market leadership.

🌍 External Factors

Industry Trends

The Indian paper market is evolving with packaging (55% share) growing rapidly, while WPP (25% share) faces long-term threats from digitisation.

Competitive Landscape

Faces intense competition from domestic players and low-priced imports from international markets.

Competitive Moat

Moat is derived from a 70-year brand pedigree, integrated pulp manufacturing (200,000 TPA), and captive power, which provide a cost advantage over non-integrated peers.

Macro Economic Sensitivity

Highly sensitive to domestic GDP growth and education sector spending, which drives demand for writing and printing paper.

Consumer Behavior

Shift toward sustainable packaging is increasing demand for paper-based boards, while digital adoption is slowing WPP growth.

Geopolitical Risks

Vulnerable to global demand-supply imbalances and trade dynamics that facilitate the influx of cheap paper imports into India.

⚖️ Regulatory & Governance

Industry Regulations

Subject to pollution control norms and safety standards for hazardous chemicals; mandatory safety training is provided to all employees.

Environmental Compliance

ISO 14001 certified; operations are subject to strict environmental norms regarding water usage and chemical effluent management.

Taxation Policy Impact

Effective tax rate is approximately 25%, with INR 98 Cr tax paid on INR 387 Cr PBT in 9M FY25.

Legal Contingencies

Related party transactions include rent payments of INR 95.18 Lakhs to Veer Enterprises Ltd and INR 58.84 Lakhs to Shree Satyanarayan Investment Company Ltd. CMD remuneration was INR 479.66 Lakhs in FY25.

⚠️ Risk Analysis

Key Uncertainties

Volatility in wood prices and global paper cycles could impact margins by over 10-15%. Labor relations are a risk, as evidenced by the Q2 FY26 strike.