West Coast Paper Mills profit drops 54% as dividend is slashed
Annual profit fell to ₹155.73 crore on modest revenue growth, while an ongoing lockout at a subsidiary plant adds operational pressure.
— 1 earlier story on West Coast Paper Mills Ltd. →What's new
- FY26 net profit fell 54% to ₹155.73 crore despite a 5% revenue rise to ₹4,279 crore.
- The board cut the annual dividend to ₹3 per share from ₹5 in the previous year.
- Andhra Paper’s Kadiyam facility is under a lockout following an illegal strike that began April 27.
Why this matters
The sharp contraction in margins suggests the company is struggling to pass on costs or manage input prices in a stagnant demand environment. A dividend cut of this magnitude signals that management is prioritizing cash preservation over shareholder payouts.
What we're watching
- The duration of the Kadiyam facility lockout and its impact on Q1 FY27 production.
- Whether margins recover in the coming quarters or if the FY26 trend persists.
- Any further updates on the labor dispute at the Andhra Paper subsidiary.
The full read
West Coast Paper Mills faced a difficult FY26, with consolidated net profit tumbling 54% to ₹155.73 crore. While revenue managed a modest 5% increase to ₹4,279 crore, the bottom-line performance indicates significant pressure on margins. The board responded by cutting the annual dividend to ₹3 per share, down from ₹5 the previous year. Beyond the numbers, the company faces an immediate operational hurdle. An illegal strike at the Kadiyam facility of its subsidiary, Andhra Paper, forced a total halt to operations on April 27. A formal lockout followed on May 1. With the disruption still ongoing, the company enters the new fiscal year with both a weakened earnings profile and a stalled production line. The dividend cut is the clearest indicator of management's current outlook.
Questions answered
- How did the company's financial performance change in FY26?
- Consolidated net profit dropped 54% to ₹155.73 crore, even as revenue increased by 5% to ₹4,279 crore.
- What is the status of the dividend payout?
- The board recommended a dividend of ₹3 per share, which is a reduction from the ₹5 per share paid in the prior year.
- What is happening at the Kadiyam facility?
- Operations at the Andhra Paper plant were halted on April 27 due to an illegal strike. A lockout was subsequently imposed on May 1 and remains in effect.
- Is the production disruption resolved?
- No. The filing confirms the disruption at the Kadiyam facility is ongoing as of the board meeting date.
Story so far
All notes on WSTCSTPAPR →- 27 May 2026 · 3:26 PM IST West Coast Paper Mills profit drops 54% as dividend is slashed
- today West Coast Paper Mills profit drops 54% as dividend is slashed