ITC-PSPD, JK Paper, and TNPL reported a jump in profits in Q4 FY25-26, supported by partial relief from the MIP, and moderation in wood prices

ITC-PSPD, JK Paper, and TNPL reported a jump in profits in Q4 FY25-26, supported by partial relief from the MIP, and moderation in wood prices

- JK Paper achieved its highest ever Paper and Board sale of 8.19 Lac MT during F.Y. 2025-26
- ITC-PSPD’s Q4 FY26 profit stood at INR 245 crore, reflecting a 21.2% year-on-year increase and a 24% QoQ increase
- TNPL’s Q4 Profit after tax (PAT) is Rs.240.30 Crore as against a profit of Rs.22.12 Crore in the previous year

The Pulp and Paper Times

India’s paper and paperboard industry continued to navigate a challenging business environment during FY25-26, marked by cheaper imports, elevated raw material costs, and volatile market conditions. Despite pressure on margins and subdued realizations, major industry players including ITC Limited, JK Paper Limited, and Tamil Nadu Newsprint and Papers Limited reported improved operational performance in the fourth quarter, supported by higher volumes, cost optimization measures, and gradual recovery in realizations. The industry also witnessed partial relief from the imposition of Minimum Import Price (MIP) measures and moderation in wood prices during the latter half of the year, while companies continued to focus on value-added products, backward integration, sustainability initiatives, and capacity enhancement to strengthen long-term growth prospects.

ITC PSPD:

ITC's Paperboards and Specialty Papers Division (ITC-PSPD) has disclosed its financial results for the fourth quarter of FY25-26, revealing a 1.8% year-on-year increase in revenue, totaling INR 2,228 crore. Partial relief to the industry, with declining import volumes supporting an uptick in net realisations in the latter half of the year. Additionally, wood prices showed signs of moderation in latter half of the year, ITC said in its media release.

ITC-PSPD’s Q4 FY26 profit stood at INR 245 crore, reflecting a 21.2% year-on-year increase and a 24% QoQ increase. In Q3 FY26, profit was INR 198 crore, while it was INR 202 crore in Q4 FY25.

Total revenue for the year ended 31 March 2026 was INR 8,766 crore, reflecting a 4.1% year-on-year increase. Total profit for the year stood at INR 797 crore, marking a 12.4% YoY decrease.

“The Indian Paper and Paperboard industry continued to operate in a challenging environment, characterised by cheap supplies, often below cash-cost levels, of paperboards and paper from China and Indonesia in global markets, including India, as well as weak demand conditions, resulting in subdued realisations. Wood prices remained elevated during the year, reflecting tight supply conditions. The cumulative impact of subdued realisations and sharp surge in wood costs, exerted pressure on margins. The Business partially mitigated these challenges by leveraging the structural strengths of its integrated model, accelerating value-led customer engagement, deepening digital-led productivity and quality interventions, and scaling up the portfolio of sustainable plastic-substitution solutions.” ITC said in media release.

The imposition of a Minimum Import Price (MIP) on virgin multi-layer paperboard w.e.f. 22nd August 2025 provided partial relief to the industry, with declining import volumes supporting an uptick in net realisations in the latter half of the year. Additionally, wood prices showed signs of moderation in latter half of the year, aided by improved availability from sustained plantation and sourcing initiatives. Collectively, these factors led to a gradual recovery in operating performance during the second half of the year; Segment PBIT witnessed 21% YoY & 24% QoQ growth in Q4.

The Business sustained its leadership position in the Value-Added Paperboard (VAP) segment through focused innovations and development of customised solutions tailored for end-use industries. The Business also consolidated its leadership position in the eco-labelled products and premium recycled paperboards segments. Specialty Papers segment witnessed robust growth during the year driven by décor paper. Market standing in the segment continues to be driven by product mix enrichment and diversification of the customer base.

JK Paper Limited:

JK Paper Ltd., (JKPL) one of India’s largest Paper & Packaging Solutions Companies, recorded a consolidated Turnover of Rs. 2111.54 Cr, EBITDA of Rs.279.07 Cr and Profit after Tax (PAT) of Rs.91.98 Cr, for Quarter-4 ended March,2026. For the Year ended March,2026, the Consolidated Turnover, EBITDA and PAT stood at Rs.7,568.93 Cr, Rs.984.11 Cr and Rs.265.84 Cr respectively.

Its revenue from operations stood at Rs. 1,965.95 crore, as compared to Rs. 1,677.05 crore year-on-year (Y-o-Y), up 17 per cent. In the March quarter (Q4FY26), JK Paper reported a net profit of Rs. 90.19 crore, as compared to Rs. 66.14 crore a year ago. In Q3 FY 26 net profit stood at Rs. 22.68 crore.

Commenting on the results, Shri Harsh Pati Singhania said, “Higher volume with improved operational efficiencies have contributed to better performance during the current quarter compared to the corresponding period as well as sequentially. High wood cost and low priced imports have severely eroded industry margins. Despite this, the Company achieved its highest ever Paper and Board sale of 8.19 Lac MT during F.Y. 2025-26 and maintained its leadership position across its product categories. The performance of the Company’s packaging conversion business also improved during the year. Sharp rupee depreciation against the Euro resulted in restatement losses, adversely impacting net profit”.

He further added, “The Composite Scheme of Arrangement, as approved by the Board of Directors of the Company, has been sanctioned by the Hon’ble National Company Law Tribunal, Ahmedabad Bench (“NCLT”) vide its Order dated 3rd February 2026 (“Order”) and has become effective from 15th March 2026.Consequent to the Scheme, The Sirpur Paper Mills Ltd, a Step-down Subsidiary of the Company, has become a Wholly Owned Subsidiary of JK Paper Ltd. and three of the packaging conversion companies have been amalgamated.

The commissioning of the Hardwood Bleach Chemical Thermo-Mechanical Pulp (“BCTMP”) Plant of Unit CPM, Gujarat, is currently at an advanced stage with commercial production expected from the 1st quarter of FY 2026–27. This backward integration will enable consistent supply of high-quality BCTMP pulp eliminating the need for import of costly imported Hardwood BCTMP pulp.”

JK Paper’s focus on social farm forestry continued around all plant locations to strengthen availability of adequate raw material besides containing cost and improving green cover in the states of Odisha, Gujarat, Maharashtra, Telangana and Andhra Pradesh. During 2025-26, 11.93 Cr. Saplings have been planted covering 90,238 Acres.

Tamil Nadu Newsprint and Papers Limited :

TNPL reported total revenue of Rs.4720.77 Crore for the year ended 31 March, 2026 as against Rs.4588.31 Crore in the previous year. The company earned Profit before Interest, Depreciation and Tax (EBITDA) of Rs.556.66 Crore for the year ended 31st March, 2026 as against Rs.525.17 Crore in the previous year. After providing Rs.312.90 Crore towards depreciation & amortization and Rs.193.16 Crore for finance cost, the company earned profit before tax of Rs.50.60 Crore as against a profit of Rs.5.30 Crore in the previous year. Profit after tax is Rs.247.75 Crore as against a profit of Rs.3.73 Crore in the previous year.

The company reported total revenue of Rs.1291.77 Crore for the quarter ended 31st March, 2026 as against Rs.1393.79 Crore in the corresponding quarter of the previous year. The company eamed Profit before Interest, Depreciation and Tax (EBITDA) of Rs.160.81 Crore for the quarter ended 31st March, 2026 as against Rs.160.12 Crore in the previous year. After providing Rs.78.17 Crore towards depreciation & amortization and Rs.44.94 Crore for finance cost, the company earned profit before tax (PBT) of Rs.37.70 Crore for the quarter ended 31 March, 2026 as against a profit of Rs.30.83 Crore in the previous year. Profit after tax (PAT) is Rs.240.30 Crore as against a profit of Rs.22.12 Crore in the previous year.

PAT for the quarter / year ended 31.03.2026 includes reversal of deferred tax liability (net) Rs.219.43 Crore due to opting New Tax Regime as per the amendment in the Income Tax Act, 2025 vide The Finance Act, 2026.

The Paper & Board market remained volatile throughout the year with challenging market conditions due to various factors including cheaper imports from ASEAN countries impacting sales realisation and profitability. The company is continuously focusing on increasing the market share of higher realization products and on new premium products as a measure to further improve the profitability.

The recent geo-political developments are being closely monitored and mitigation measures being taken by the Company on a continuous basis.

Paper production for the year ended 31st March, 2026 is 434294 MT against 425166 MT in the previous year and Board production is 200075 MT against 189406 MT in the previous year. Paper sales for the year ended 31 March, 2026 is 447844 MT against 432055 MT in the previous year and Board sales for the year ended 31st March, 2026 is 198849 MT against 183515 MT in the previous year. The Company achieved highest ever production and sale of Paper and Board since inception. Board Unit achieved turnaround in the profitability during the year ended 31 March, 2026.

Paper production for the quarter ended 31st March, 2026 is 108314 MT against 109690 MT in the previous year and Packaging Board production is 52948 MT against 52268 MT in the previous year.
 

Published at : May 22, 2026 07:59 AM (IST)

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