JK Paper has officially confirmed the delay in commissioning of its Hardwood Bleached Chemi-Thermo Mechanical Pulp (BCTMP) plant through a regulatory filing under SEBI Regulation 30. The company has pushed the commissioning timeline from the previously planned Q4 FY26 to Q1 FY27, representing a one-quarter delay in its capacity expansion plans.

Official Regulatory Disclosure

In its filing dated March 30th, JK Paper informed stock exchanges BSE and NSE about the revised timeline for its BCTMP plant project. The company stated that the Hardwood Bleach Chemical Thermo-Mechanical Pulp plant is currently at advanced stages of erection and commissioning, with commercial production now expected to commence in Q1 FY27.

Regulatory Compliance

The disclosure was made pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, with reference to the company's earlier communication dated September 29, 2025. Company Secretary and Compliance Officer Pradeep Joshi signed the regulatory filing, ensuring transparency with stakeholders about the project's revised schedule.

Impact on Expansion Plans

The one-quarter delay in the BCTMP plant commissioning will postpone JK Paper's planned capacity expansion and the facility's contribution to revenue generation. Despite the delay, the company has indicated that the project remains on track with advanced construction and commissioning activities currently underway, suggesting the revised timeline reflects a more realistic assessment of project completion requirements.

JK Paper Limited has secured a significant victory in its tax appeal, with the Commissioner of Income Tax (Appeals), Ahmedabad, deleting the entire demand of Rs 49.53 crore that was raised against the company for Assessment Year 2022-23. The appellate order, dated March 27, 2026, represents a complete reversal of the Income Tax Officer's original assessment.

Background of the Tax Dispute

The tax controversy originated from an assessment order for Financial Year 2021-22 (Assessment Year 2022-23), where the Income Tax Officer had made additions to the company's income. This resulted in an aggregate demand of Rs 49.53 crore, which included interest of Rs 15.19 crore. The company had previously disclosed this development on May 21, 2025, and subsequently filed an appeal before the Commissioner of Income Tax (Appeals).

Appellate Order Details

The key details of the appellate proceedings are outlined below:

Financial Impact and Implications

The appellate order has significant positive financial implications for JK Paper Limited. The Commissioner of Income Tax (Appeals) has deleted all additions made to the company's income by the Income Tax Officer in the original assessment order. Consequently, the entire demand of Rs 49.53 crore, including the interest component of Rs 15.19 crore, will be deleted by the Income Tax Officer.

Company's Position and Compliance

JK Paper Limited has maintained throughout the proceedings that its tax positions are in accordance with applicable laws. The company has stated that it does not anticipate any material adverse impact on its financials, operations, or other activities pursuant to this favorable order. No penalties, restrictions, or sanctions were imposed, and no aberrations or non-compliances were identified by the authority.

Regulatory Disclosure

The company has fulfilled its disclosure obligations under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was made pursuant to SEBI Circular No. SEBI/HO/CFD/CFD-PoD-2/P/CIR/2025/25 dated February 25, 2025, in continuation of the company's earlier communication regarding the initial tax assessment. Company Secretary and Compliance Officer Pradeep Joshi signed the disclosure documents on March 28, 2026.