JK Paper Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, following a board meeting held on February 5, 2026. The paper manufacturing company reported a significant decline in profitability despite improved EBITDA performance, with results impacted by planned maintenance shutdowns, competitive import pressure, and currency fluctuations.

Financial Performance Overview

The company's standalone financial results revealed contrasting trends with improved operational efficiency metrics offsetting substantial profit decline:

Operational Challenges Impact Results

The company's management attributed the performance decline to three primary factors. Planned annual shutdowns at two major manufacturing plants in Odisha and Gujarat led to reduced production capacity during the quarter. Additionally, continued imports at cheaper rates resulted in lower sales realization, pressuring the company's pricing power in the domestic market.

Finance costs increased significantly to ₹37.09 crores in Q3FY26 from ₹16.96 crores in Q3FY25, primarily due to sharp rupee depreciation against the Euro. For the nine-month period, finance costs rose to ₹141.24 crores compared to ₹107.12 crores in the previous year.

Consolidated Performance Shows Mixed Results

On a consolidated basis, the company reported revenue growth but continued profit decline, reflecting contributions from newly acquired subsidiaries:

New Labour Codes Impact

The Government of India notified four Labour Codes effective from November 21, 2025. Based on draft Central Rules and FAQs issued by the Ministry of Labour & Employment, the company assessed an incremental impact towards retiral obligations at ₹11.85 crores on standalone basis and ₹14.36 crores on consolidated basis, disclosed as exceptional items.

Business Expansion and Acquisitions

Despite operational challenges, JK Paper continued its expansion strategy through strategic acquisitions. The company acquired 65.65% equity shares in Borkar Packaging Private Limited on October 28, 2025, making it a subsidiary. Subsequently, the shareholding was increased to 71.96% during the quarter ended December 2025 through additional equity share subscriptions.

Corporate Restructuring Update

The company received approval from the National Company Law Tribunal, Ahmedabad on February 3, 2026, for its Composite Scheme of Arrangement involving multiple subsidiaries. The scheme involves the transfer of businesses between JK Paper Limited and its subsidiaries, with effective implementation pending filing of certified copies with the Registrar of Companies.

JK Paper Limited has announced that its Board of Directors will convene on February 5, 2026, to review and approve the company's quarterly financial performance. The meeting has been scheduled in compliance with regulatory requirements and will focus on the unaudited financial results for the third quarter of fiscal year 2026.

Board Meeting Details

The company has formally notified both major stock exchanges about the upcoming board deliberations. The meeting agenda includes consideration and approval of both standalone and consolidated unaudited financial results for specific reporting periods.

Regulatory Compliance and Trading Window

The announcement comes in adherence to Regulation 29 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. JK Paper Limited has implemented appropriate measures to ensure compliance with insider trading regulations during this period.

The company has established a comprehensive trading window closure schedule to maintain regulatory compliance:

Stock Exchange Communication

JK Paper Limited has formally communicated the board meeting schedule to both BSE Limited and National Stock Exchange of India Limited. The notification was signed by Company Secretary and Compliance Officer Pradeep Joshi on January 22, 2026, ensuring timely disclosure to market participants and regulatory authorities.

The company operates under the corporate identification number L21010GJ1960PLC018099 and trades on stock exchanges under the symbol JKPAPER. With its registered office located at Central Pulp Mills, Fort Songadh, the company maintains its administrative operations and continues its legacy in the paper manufacturing sector.