ITC-PSPD and Andhra Paper Report Strong Q1 FY27 Performance; BGPPL Sees Rising Demand for Woodfree Paper, Shares Special Views on Imports by an Expert

ITC-PSPD and Andhra Paper Report Strong Q1 FY27 Performance; BGPPL Sees Rising Demand for Woodfree Paper, Shares Special Views on Imports by an Expert

BGPPL witnessed a significant increase in demand for Uncoated Woodfree Papers, particularly in North India, with record bookings and billings. 

The Pulp and Paper Times

ITC's Paperboards and Specialty Papers

ITC's Paperboards and Specialty Papers Division (ITC-PSPD) reported a strong performance in the first quarter of FY27, with the Paper Segment sustaining its growth momentum. The segment recorded a 9% year-on-year increase in revenue, while Segment Profit Before Interest and Tax (PBIT) surged 38% YoY, supported by improved operating efficiencies and stronger market performance. Segment PBIT margin also expanded by 200 basis points during the quarter.

The robust performance was driven by higher realisations and volume growth across key product categories. ITC-PSPD witnessed strong traction in its anchor grades of value-added paperboards, sustainable paperboards and packaging, along with exports, reinforcing the company's focus on high-value and sustainable product offerings.

On the cost front, wood prices moderated on a year-on-year basis during the quarter, providing support to profitability. At the same time, the company continued to strengthen its long-term fibre security strategy by accelerating plantation activities in core regions, developing new plantation areas, collaborating with other wood-based industries, and implementing satellite-based plantation monitoring systems to enhance productivity and sustainability.

The company also highlighted that the industry continues to engage with policymakers to ensure sustained safeguard measures against low-priced imports of paperboards and coated/uncoated paper. In this regard, the Minimum Import Price (MIP) on Virgin Multi-layer Paperboard has been extended until September 30, 2026. Additionally, the Directorate General of Trade has recommended the imposition of anti-dumping duties on supplies from Indonesia, with the proposal currently awaiting approval from the Ministry of Finance.

ITC's Packaging and Printing Business also delivered robust growth during the quarter, driven by strong performance across both its Flexibles and Cartons portfolio. The business remained focused on accelerating new business development while offering innovative and customised packaging solutions to customers.

The Q1 FY27 performance reflects ITC-PSPD's continued focus on value-added products, sustainable growth, operational efficiency, and long-term competitiveness amid evolving market dynamics and policy developments.

Andhra Paper:

Andhra Paper reported its Q1FY27 results on August 4, 2026, posting a standalone net profit of Rs. 30.32 crore (up 42.3% year-on-year) on a flat revenue of Rs. 393.77 crore. Profitability grew due to expanded EBITDA margins (12.4%) and lower costs, despite partial production losses at the Kadiyam unit.  Revenue remained flat at Rs. 39,377.13 lakh while total expenses fell due to reduced material and finance costs. Operations have largely normalized with capacity utilization reaching roughly 93% by late July 2026.

BGPPL:

Bilt Graphic Paper Products Limited (BGPPL) informed all channel partners and dealers in its circular dated August 3, 2026, that, The quarter from July to September is generally considered an Off-Season, with July marking the onset of the slowdown. However, with various market variables at play, apart from the Geopolitical-led shipping disruptions, we have witnessed a significant increase in demand for Uncoated Woodfree Papers, particularly in North India, with record bookings and billings. 

“As explained to during the month, the Uncoated Market appears to have bottomed out, and the lowest price offered is moving up by at least Rs 1,250 PMT on Vector Print & Majestic Print with immediate effect in North India for a limited allocation. The other zones are also expected to closely follow this trend. If the current demand is any indication, we believe that demand shall remain robust, and we expect a good season to commence from September.” BGPPL stated.

Views on Import:

Talking to The Pulp and Paper Times, Mr. Ayush Garg, Director, Kamakshi Papers Mills, Said, during periods of surplus capacity in international markets—particularly in China and Southeast Asia—aggressive export pricing compels Indian mills to discount products to retain price-sensitive institutional and converter clients. This dynamic compresses margins, especially when input costs such as pulp, wastepaper, chemicals, and power remain elevated and cannot be fully passed through. The resulting stress often leads to lower capacity utilization, rising inventories, and working capital blockages, disproportionately impacting non-integrated and recycled fiber-based mills compared to larger, integrated players with stronger cost structures.

Mr. Garg further said, that “Import penetration is particularly visible in segments such as maplitho and copier grades in WPP, as well as coated and folding box boards, where even marginal price differentials create substitution risks. While trade safeguard measures such as anti-dumping duties or minimum import pricing can offer temporary relief, they do not address structural competitiveness.”

Notably, sustained import pressure has also acted as a catalyst for modernization within the domestic industry, encouraging investments in quality upgradation, energy efficiency, automation, and the development of higher-value specialty grades. Increasingly, manufacturers are diversifying toward differentiated and less price-sensitive segments such as premium packaging boards, sustainable grades, and tissue products to mitigate pure commodity exposure. Ultimately, long-term resilience for domestic WPP and board producers will depend on competitive cost structures, operational efficiency, product differentiation, and market diversification rather than reliance on protective measures alone, Mr. Garg Concludes 
 

Published at : Aug 06, 2026 08:28 AM (IST)

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