JK Paper Limited has received credit rating reaffirmation from India Ratings and Research (Ind-Ra) across its funding facilities totaling ₹10,500.00 million. The rating agency communicated its decision on January 12, 2026, maintaining stable outlooks across all instrument categories.

Rating Reaffirmation Details

India Ratings and Research has reaffirmed its ratings for three categories of JK Paper's financial instruments. The rating actions demonstrate the agency's continued confidence in the company's creditworthiness and financial stability.

Regulatory Compliance

The company disclosed this information on January 13, 2026, pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary and Compliance Officer Pradeep Joshi signed the regulatory filing, ensuring timely communication to stock exchanges.

Credit Rating Significance

The IND AA rating with stable outlook on bank loan facilities worth ₹9,200.00 million indicates high credit quality with very low credit risk. The IND A1+ rating on commercial papers reflects the highest degree of safety regarding timely payment of financial obligations. These ratings provide JK Paper with favorable borrowing conditions and enhanced market credibility.

Financial Instrument Portfolio

JK Paper maintains a diversified funding structure across multiple instruments. The bank loan facilities represent the largest component at ₹9,200.00 million, followed by commercial papers at ₹1,000.00 million and fixed deposits at ₹300.00 million. This diversification supports the company's operational and expansion requirements while maintaining financial flexibility.

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.