JK Paper’s Q3 profit impacted by planned annual shutdown; Board approves Rs. 500 Cr Hybrid Power Project; TNPL and Pudumjee report lower PAT

JK Paper’s Q3 profit impacted by planned annual shutdown; Board approves Rs. 500 Cr Hybrid Power Project; TNPL and Pudumjee report lower PAT

The Pulp and Paper Times

India’s paper industry experienced a tough third quarter of FY25-26, grappling with rising raw material costs, a surge in imports, and falling market prices. Major companies such as JK Paper Ltd., Tamil Nadu Newsprint and Papers Ltd. (TNPL), and ITC-PSPD. posted mixed financial results, with profitability strained by elevated wood prices, rupee depreciation and reduced realizations. Nevertheless, these firms are maintaining their focus on enhancing operational efficiency, advancing sustainability efforts, and pursuing strategic growth initiatives to adapt to the shifting market environment.

JK Paper Ltd., (JKPL) one of India’s largest Paper & Packaging Solutions Companies, recorded a standalone turnover of Rs. 1,457.88 Cr, and Profit after Tax (PAT) of Rs.12.67 Cr, for the quarter ended December,2025. For the nine months ended December,2025, the standalone turnover, and PAT stood at Rs.4,471.29 Cr, and Rs.141.78 Cr respectively.

Commenting on the results, Shri Harsh Pati Singhania said, “The performance has been adversely impacted primarily due to planned annual shut at two major plants of JK Paper Ltd in Odisha and Gujarat leading to lower production. Continued imports at low price have resulted in lower sales realisation, and sharp rupee depreciation against Euro has impacted the finance cost. Some improvement is, however, anticipated in the coming quarter due to improved demand and reduction in input costs.”

“The Board approved a Rs. 500 Cr Hybrid Power Project which will result in power cost economies and increase Company’s sustainable green power output, moving towards its goal of reducing fossil fuel dependence.”

He further added “the Company’s Composite Scheme of Arrangement has been approved on 3 rd February,2026 by the Hon'ble National Company Law Tribunal, Ahmedabad (NCLT) which will result in the consolidation of Paper and Packaging businesses and streamline the corporate structure bringing in efficiencies in operations, processes and ease of compliances. This will also help the company to serve its customers better.”

The Company has assessed the financial implication of New Labour Code issued by Govt. of India effective from 21st November, 2025 and disclosed the incremental impact under Exceptional Item in current quarter results.

JK Paper’s focus on social farm forestry continued around all plant locations to strengthen availability of adequate raw material besides improving green cover in the states of Odisha, Gujarat, Andhra Pradesh, Telangana, and Maharashtra. Till date, total Saplings planted is 9.50 Cr. Covering 70,021 Acres.

Tamil Nadu Newsprint and Papers Limited :

TNPL reported total revenue of Rs.1146.06 Crore for the quarter ended 31st December, 2025 as against Rs.1136.79 Crore in the corresponding quarter of the previous year. The company earned Profit before Interest, Depreciation and Tax (EBITDA) of Rs.140.57 Crore for the quarter ended 31 December, 2025 as against Rs.65.75 Crore during the corresponding period of the previous year. After providing Rs.78.98 Crore towards depreciation & amortization and Rs.49.80 Crore for finance cost, the company earned Profit before tax of Rs.11.79 Crore for the quarter ended 31 December, 2025 as against a Loss of Rs.64.64 Crore in the corresponding quarter of the previous year. Profit after tax is Rs.6.77 Crore as against a Loss of Rs.42.89 Crore in the corresponding quarter of the previous year.

The company reported total revenue of Rs.3428.99 Crore for the Nine month ended 31st December, 2025 as against Rs.3194.51 Crore in the corresponding period of the previous year. The company earned Profit before Interest, Depreciation and Tax (EBITDA) of Rs.395.85 Crore during Nine months ended 31 December, 2025 as against Rs.365.04 Crore during the corresponding period of the previous year. After providing Rs.234.73 Crore towards depreciation & amortization and Rs.148.22 Crore for finance cost, the company earned a Profit before tax of Rs.12.90 Crore as against a Loss of Rs.25.54 Crore in the corresponding period of previous year. Profit after tax is Rs.7.45 Crore as against a Loss of Rs.18.40 Crore in the corresponding period of the previous year.

The company is continuously focusing on increasing the market share of higher realization products and on new premium products as a measure to improve the profitability.
Paper production for the quarter ended 31 December, 2025 is 112510 MT against 99954 MT in the corresponding quarter of the previous year. Packaging Board production is 47085 MT against 47524 MT in the corresponding quarter of the previous year.

Paper production for the nine months ended 31 December, 2025 is 325979 MT against 315476 MT in the corresponding previous year. Packaging Board production is 147127 MT against 137139 MT in the corresponding previous year.

Pudumjee Paper Products

Pudumjee Paper Products Ltd, reported total Income at Rs.208 Crores for the Quarter ended 31st December, 2025 as against Rs.206 Crores reported in the quarter ended 30th September 2025. The EBIDTA stood at 18% at Rs.112 Crores as against Rs.116 Crores of last corresponding period.

Pudumjee earned Profit after Tax of Rs.21 Crore for the quarter ended 31 December, 2025 as against Rs.20 Crore during the corresponding period of the previous year.

The Company has successfully commissioned 15.4 MWac Solar Power Plant on 26th November, 2025, located in Solapur District in Maharashtra and the renewable power generated from it is utilized for the Company’s captive consumption at it’s Pune plant. The new Boiler commissioning is awaiting statutory approval, which is likely to be received soon. The Company is in the process of making an application for Environment clearance for the construction of the project at Mahad, due to changes in regulatory requirements.
 

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