19-May-2026 14:32
JK Paper rises after Q4 PAT jumps 36% YoY to Rs 92 crore
Profit before exceptional items and tax stood at Rs 119.80 crore in Q4 FY26, compared with Rs 92.55 crore in Q4 FY25. The company reported an exceptional gain of Rs 3 crore during the quarter
EBITDA (earnings before interest, tax, depreciation, and amortization), also known as cash operating profit, stood at Rs 279.07 crore during the quarter, registering the growth of 21.81% compared with Rs 229.11 crore posted in the same period last year.
Total expenses rose 15.83% year on year to Rs 1,848.70 crore in the quarter ended 31 March 2026. The cost of material consumed stood at Rs 1,168.94 (up 9.26% YoY), and employee benefits expense was at Rs 170.65 crore (up 14.29%) during the period under review.
Revenue from the paper and packaging segment rose 13.71% to Rs 1,885.56 crore in Q4 FY26 as against Rs 1,658.16 crore in Q4 FY25. Revenue from other segments surged 300.15% to Rs 81.99 crore in Q4 FY26 from Rs 20.49 crore in Q4 FY25.
On a full-year basis, the company's consolidated net profit declined 35% to Rs 265.84 crore on a 6.2% rise in net sales to Rs 7,076.03 crore in FY26 over FY25.
JK Paper also said the implementation of the government's four new labour codes from November 21, 2025 resulted in an assessed incremental impact of Rs 16.3 crore towards retiral obligations during FY26. The amount has been disclosed as an exceptional item.
Commenting on the results, Shri Harsh Pati Singhania said, 'Higher volume with improved operational efficiencies have contributed to better performance during the current quarter compared to the corresponding period as well as sequentially. High wood cost and low priced imports have severely eroded industry margins. Despite this, the Company achieved its highest ever Paper and Board sale of 8.19 Lac MT during F.Y. 2025-26 and maintained its leadership position across its product categories. The performance of the Company's packaging conversion business also improved during the year. Sharp rupee depreciation against the Euro resulted in restatement losses, adversely impacting net profit.
He further added, 'The composite scheme of arrangement, as approved by the board of directors of the company, has been sanctioned by the Hon'ble National Company Law Tribunal, Ahmedabad Bench ('NCLT') vide its Order dated 3rd February 2026 ('Order') and has become effective from 15th March 2026.Consequent to the Scheme, The Sirpur Paper Mills Ltd, a Step-down Subsidiary of the Company, has become a Wholly Owned Subsidiary of JK Paper Ltd. and three of the packaging conversion companies have been amalgamated.
The commissioning of the Hardwood Bleach Chemical Thermo-Mechanical Pulp ('BCTMP') Plant of Unit CPM, Gujarat, is currently at an advanced stage with commercial production expected from the 1st quarter of FY 2026'27. This backward integration will enable consistent supply of high-quality BCTMP pulp eliminating the need for import of costly imported Hardwood BCTMP pulp.'
The board has recommended a final dividend of Rs 4 per equity share of face value Rs 10 each for the financial year ended March 31, 2026. The dividend, if approved by shareholders at the upcoming annual general meeting, will be paid within 30 days of the AGM, subject to applicable tax deductions, stated the filing.
JK Paper is the leading player in office papers, coated papers, and packaging boards. It is one of the most respected paper companies today.
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