West Coast Paper Mills reported a sharp decline in profitability for the third quarter of the financial year, with net profit dropping significantly on a year-on-year basis despite a modest rise in revenue.

The company posted a net profit of ₹27 crore in Q3, down 58% compared to ₹64.2 crore in the corresponding quarter last year. The substantial fall in earnings came even as the company managed to deliver steady topline growth.

Revenue for the quarter increased 3.3% year-on-year to ₹1,049.8 crore, compared to ₹1,016 crore in the same period of the previous fiscal. The growth in revenue, however, did not translate into improved operating performance.

EBITDA declined 7% to ₹77 crore from ₹83 crore reported in the year-ago quarter. As a result, EBITDA margin contracted to 7.3%, compared with 8.1% in Q3 of the previous financial year, reflecting pressure on operating efficiency.

The decline in both EBITDA and net profit indicates margin compression during the quarter, despite stable revenue growth. Investors and analysts will closely track the company’s cost structure and demand trends in the paper industry in the coming quarters to assess the recovery trajectory.