ITC-PSPD has reported a 37% decline in profit for Q1 FY26, citing a persistently challenging operating environment

ITC-PSPD has reported a 37% decline in profit for Q1 FY26, citing a persistently challenging operating environment

- Segment Revenue up 7% YoY driven by higher volumes 
- Specialty Papers segment witnessed robust growth driven by capacity augmentation in Décor paper 
- Muted realisations and high wood prices continue to weigh on margins 

The Pulp and Paper Times

ITC's Paperboards and Specialty Papers Division (ITC-PSPD) has disclosed its financial results for the first quarter of FY25-26, revealing a 7% year-on-year increase in revenue, totaling INR 2,116 crore. Competitive pressures from low-priced Chinese supplies in global markets, sluggish domestic demand, and rising wood costs are creating a challenging environment for the paper sector, ITC said in its media release.

ITC-PSPD has reported a PAT of INR 163 crore for Q1 FY26, reflecting a 37.8% year-on-year decline, compared to INR 261 crore earned by the paper segment in Q1 FY25.

Paperboards, Paper and Packaging Segment remains impacted due to low priced Chinese & Indonesian supplies in global markets including India, soft domestic demand conditions and unprecedented surge in wood prices. The operating environment remained challenging during the quarter, with sustained influx of low-priced supplies into global markets including India, elevated domestic wood prices and subdued realisations.

The Business continues to engage with policy makers for introducing trade remedies to safeguard domestic industry including increasing wood availability through collaborative public-private plantation models to strengthen the competitiveness of domestic industry and arrest the rapid increase of low priced imports of paper & paperboard into the country.

ITC-PSPD continues to focus on accelerating plantations in core areas, developing new areas, collaborating with other wood-based industries and implementing satellite-based plantation monitoring systems, among others. Representations continue to be made at appropriate forums for introduction of trade remedies to safeguard domestic industry.

The Packaging and Printing Business witnessed signs of gradual uptick in domestic demand. The Business continues to focus on accelerating new business development, offering innovative and customised solutions.

The sustainable paperboards/packaging solutions portfolio continues to witness strong growth leveraging cutting-edge innovation platforms and has grown to 3x in last 4 years.
 

Web Title: ITC-PSPD has reported a 37% decline in profit for Q1 FY26, citing a persistently challenging operating environment