JK Paper Limited reported a consolidated net profit of ₹136.27 crore for the quarter ended June 30, 2026, marking a 63% increase from the year-ago period. The Mumbai-based paper and packaging solutions company saw its consolidated turnover rise 13% to ₹1,998.67 crore, driven by higher production volumes and an enriched product mix despite a challenging market environment. EBITDA expanded 18% to ₹320.90 crore, reflecting strong operational efficiency.

The Board of Directors approved the unaudited financial results at a meeting held on July 27, 2026. The results were reviewed by statutory auditors Lodha & Co. LLP in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Comparative figures for Q1FY25 have been restated to reflect the Composite Scheme of Arrangement, which became effective on March 15, 2026, following approval from the National Company Law Tribunal on February 3, 2026.

Financial Performance Highlights

The following table summarises the key standalone and consolidated financial metrics for the quarter:

Standalone revenue from operations rose 6.2% to ₹1,699.79 crore from ₹1,600.17 crore in the prior year period. Standalone EBITDA increased 6.6% to ₹258.82 crore. Consolidated revenue grew to ₹1,998.67 crore from approximately ₹1,768.74 crore year-on-year, while consolidated EBITDA expanded to ₹320.90 crore from ₹272.52 crore. Finance costs declined significantly, falling 49.6% to ₹30.83 crore on a standalone basis and 40.7% to ₹39.81 crore on a consolidated basis compared to the prior year period.

Strategic Developments and Sustainability

During the quarter, JK Paper acquired an additional 15.40% stake in Borkar Packaging Private Limited (BPPL), increasing its total shareholding to 87.36%. This acquisition aligns with the Share Purchase Subscription and Shareholders Agreement entered into with BPPL. Additionally, the company commenced production at its Hardwood Bleach Chemical Thermo-Mechanical Pulp (BCTMP) plant at Unit CPM, Gujarat, starting June 30, 2026.

The company continued its focus on social farm forestry around all plant locations to strengthen raw material availability and improve green cover in Odisha, Gujarat, Maharashtra, Telangana, and Andhra Pradesh. During the quarter, 2.61 crore saplings were planted covering 20,177 acres. CSR activities covered 876 villages across six states and one Union Territory, benefiting over 6 lakh people directly.

What the Numbers Show

The expansion in consolidated EBITDA margin underscores a meaningful improvement in operational leverage, with top-line growth complemented by disciplined cost management. The nearly 50% drop in standalone finance costs—from ₹61.22 crore to ₹30.83 crore—provided a substantial tailwind to bottom-line profitability, suggesting that debt reduction or lower interest rates played a critical role in enhancing margins beyond volume-driven improvements alone.

JK Paper has accepted the resignation of Anoop Seth as Independent Director, effective July 27, 2026. The departure, cited as due to personal reasons, sees Seth stepping down simultaneously from his roles as Chairman of the Audit Committee and Member of the Stakeholders Relationship Committee. Seth confirmed there are no material reasons for his resignation other than those stated in his letter.

The Board of Directors approved the acceptance following disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. The filing was submitted to BSE Limited and the National Stock Exchange of India Ltd on July 27, 2026. The disclosure aligns with Part A of Schedule III of the Listing Regulations and SEBI Master Circular HO/49/14/14(7)2025CFD-POD2/1/3762/2026 dated January 30, 2026.

Seth’s resignation takes effect from the close of business hours on July 27, 2026. As an Independent Director, he held no directorships in other listed entities at the time of resignation. His exit creates a vacancy in the Board composition and requires the company to appoint a replacement Independent Director to maintain compliance with governance norms regarding independent representation.

Resignation Details

The Board recorded its appreciation for Seth’s contribution during his tenure. President & Director Amar Singh Mehta signed the disclosure letter submitted to the exchanges. The company must now initiate the process to appoint a new Independent Director to fill the vacancy left by Seth’s departure.