Wood Prices Expected to Moderate; JK Paper, ITC-PSPD and Pudumjee Report Strong Recovery in Q2FY27

Wood Prices Expected to Moderate; JK Paper, ITC-PSPD and Pudumjee Report Strong Recovery in Q2FY27

-The recovery was supported by an improving demand environment, robust traction in key value-added paperboard grades and strong export performance
-ITC-PSPD Reports 36% YoY Revenue Growth in Paper Segment in Q2FY27; PBIT Rises 48%

The Pulp and Paper Times

ITC’s Paperboards, Paper and Packaging (PSPD) business reported a strong recovery in the Paper Segment during Q2FY27, registering a 36% year-on-year (YoY) increase in segment revenue and a 48% rise in Segment Profit Before Interest and Tax (PBIT). The segment’s PBIT margin also expanded by 320 basis points, reflecting improved operational performance and effective pricing actions amid significant inflation in input costs.

The recovery was supported by an improving demand environment, robust traction in key value-added paperboard grades and strong export performance. The company also highlighted continued growth in its sustainable paperboards and packaging solutions portfolio, which has expanded to 3.9 times its size over the past five years, driven by innovation and increasing demand for sustainable alternatives.

During the quarter, ITC successfully completed the acquisition of the Century Pulp & Paper undertaking at Lalkuan, Uttarakhand, on 1 August 2026, marking an important development in strengthening its paper manufacturing business.

However, elevated wood prices remained a key concern during the quarter due to lower-than-expected harvesting caused by adverse weather conditions and increased demand from competing industries. ITC expects wood prices to moderate going forward. The company continues to strengthen its wood supply chain through accelerated plantations in core areas, development of new plantation regions, collaboration with other wood-based industries and satellite-based plantation monitoring systems.

On the policy front, the Minimum Import Price (MIP) on Virgin Multi-layer Paperboard has been extended until 31 March 2027. The industry continues to engage with policymakers to seek sustained safeguard measures against low-priced imports of paperboards and coated and uncoated paper.

Meanwhile, ITC’s Packaging and Printing Business delivered resilient performance across its Flexibles and Cartons segments, supported by innovative and customised solutions and new business development initiatives. The business also continued to provide strategic support to the Cigarettes Business, enabling faster execution and turnaround of new product launches.

Overall, the Q2FY27 performance reflects improving demand conditions, stronger profitability and continued momentum in value-added and sustainable paper and packaging products.

JK Paper Reports 11% Revenue Growth in Q2FY27; EBITDA Rises 26% and PAT Increases 36%

JK Paper Ltd. (JKPL), one of India’s largest paper and packaging solutions companies, reported an 11% year-on-year increase in consolidated turnover to Rs. 2,053.69 crore for the second quarter ended September 2026. The company also recorded a 26% growth in EBITDA to Rs. 300.86 crore, while Profit Before Tax (PBT) increased by 48% to Rs. 143.72 crore and Profit After Tax (PAT) rose 36% to Rs. 102.10 crore.

For the half year ended September 2026, consolidated turnover stood at Rs. 4,052.36 crore, registering 12% growth. EBITDA increased by 21% to Rs. 621.76 crore, while PBT and PAT grew by 53% and 50%, reaching Rs. 326 crore and Rs. 237.76 crore, respectively.

Commenting on the performance, Shri Harsh Pati Singhania said that an improved product mix contributed to better performance during the quarter compared with the corresponding period last year. He also highlighted the continued growth of the company’s Packaging Conversion businesses in terms of both revenue and profitability.

During the quarter, JK Paper acquired the remaining 20% stake in Radheshyam Wellpack Private Limited (RWPL), making it a wholly owned subsidiary of the company.

The company also continued its social farm forestry initiatives across its plant locations to strengthen raw material availability and improve green cover. During the first six months of the year, JK Paper planted 6.63 crore saplings, covering 47,532 acres across Odisha, Gujarat, Andhra Pradesh, Telangana and Maharashtra.

Pudumjee Paper Products Ltd, on Friday, reported Turnover at Rs.430 Crores for the half year ended 30th September, 2026 as against Rs.404 Crores reported in the last corresponding period. The EBIDTA including other income, stood at 21% at Rs.90 Crores as against 20% at Rs.80 Crores of last corresponding period and includes benefits arising out of the capex incurred in the last year for Solar Power Plant and AFBC Boiler etc. The Sale tonnage of paper were higher by about 2% & net Sales Realization by about 4% mainly to address higher Raw Material cost.

Revenue from Operations (Sales): INR 227.30 crore (up 9.74% YoY from INR 207.13 crore in Q2 FY26; up 12.01% QoQ from INR 202.92 crore in Q1 FY27), Net Profit After Tax (PAT): INR 22.72 crore (up 34.28% YoY from INR 16.92 crore in Q2 FY25/26, down 32.62% QoQ from INR 33.72 crore in Q1 FY27

The Company is in the process of making an application for Environment clearance for construction of the project at Mahad.
 

Published at : Nov 03, 2026 04:34 AM (IST)

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