JK Paper Limited , one of India's largest paper and packaging solutions companies, has announced its financial results for the second quarter of fiscal year 2025-26, revealing a mixed performance amid ongoing industry challenges.

Financial Highlights

• Consolidated turnover for Q2 FY26 reached Rs. 1,870.34 crore, marking the company's highest quarterly revenue.
• EBITDA stood at Rs. 243.66 crore for the quarter.
• Profit After Tax (PAT) was reported at Rs. 74.75 crore.

For the half-year ended September 30, 2025, JK Paper reported:

Industry Challenges

Commenting on the results, Harsh Pati Singhania, Chairman & Managing Director, highlighted the ongoing challenges faced by the paper and paperboard segment:

• Higher wood costs continue to impact profitability.
• Lower sales realization due to cheap imports has affected performance across product segments.
• Recent changes in GST rates have adversely impacted the Paper & Board Industry:
  • GST on Paper and Boards increased from 12% to 18%
  • GST on converted products (Mono Cartons & Corrugated Boxes) reduced to 5%
  • GST on Notebooks reduced to nil

These GST changes have resulted in an inverted duty structure, leading to more expensive input costs for converters and blockage of working capital. The industry is also facing increased competition from cheap imports that do not bear the embedded taxes in domestic paper and board supplies.

Operational Highlights

Despite the challenges, JK Paper continued to focus on strengthening its operations:

• Social farm forestry initiatives expanded across Odisha, Gujarat, Andhra Pradesh, Telangana, and Maharashtra.
• 5.39 crore saplings were planted during the quarter, covering over 37,260 acres.
• CSR activities reached 860+ villages across 9 states, benefiting over 11.77 lakh people directly.

Credit Rating

CRISIL Ratings Limited reaffirmed its ratings for JK Paper:

• "CRISIL AA/Stable" for Bank facilities and Non-Convertible Debentures
• "CRISIL A1+" for Commercial Papers

Awards and Accolades

The company received several awards during Q2 FY26, including:

• Gold Award at 7th CCQC from Quality Circle Forum of India (QCFI), Bhubaneswar
• National Energy Leader Award from Confederation of Indian Industries (CII)
• 26th National Award for Excellent Energy Efficient Unit from CII

Outlook

While JK Paper has shown resilience in its top-line growth, the company faces significant headwinds from industry-wide challenges. The management has made representations to the government and GST Council regarding the anomalies in the tax structure, seeking resolution to create a more balanced operating environment for the paper and board industry.

As a wood and carbon-positive company, JK Paper continues to focus on value-added products and sustainable practices, positioning itself to navigate the current market challenges while maintaining its leadership in branded copier paper and packaging products.

JK Paper Limited , a prominent player in the Indian paper industry, has reported its unaudited financial results for the quarter ended September 30, revealing a significant decline in net profit despite a slight decrease in revenue.

Financial Highlights

JK Paper's net profit for the quarter stood at ₹72.85 crore, marking a substantial decrease of 26.74% from ₹99.44 crore reported in the same period last year. The company's total income also saw a decline, decreasing by 6.19% year-over-year to ₹1378.36 crore from ₹1469.39 crore.

Factors Affecting Performance

The company cited several factors contributing to the decline in its financial performance:

1. Higher wood costs
2. Lower sales realization
3. Continuing cheap imports

These factors have put pressure on the company's profitability despite its efforts to maintain operational efficiency.

Corporate Actions

During the reported period, JK Paper made significant moves to strengthen its market position:

Acquisition of Additional Stake in Subsidiary

• JK Paper acquired an additional 20% stake in Radhesham Wellpack Private Limited.
• This acquisition brings JK Paper's total holding in the subsidiary to 80%.

New Subsidiary Acquisition

• The company completed the initial acquisition of 65.7% equity shares in Borkar Packaging Private Limited.
• This acquisition makes Borkar Packaging Private Limited a subsidiary of JK Paper.

These strategic moves are likely aimed at expanding JK Paper's market presence and diversifying its product portfolio.

Board Approval

The Board of Directors of JK Paper Limited approved these financial results at a meeting held on November 3.

As the paper industry continues to face challenges from cheap imports and fluctuating raw material costs, JK Paper's ability to navigate these headwinds while leveraging its recent acquisitions will be crucial for its future performance and market position.