JK Paper Limited Earnings Summary — Q1 FY2027
JK Paper Reports Q1 FY27 Net Profit Recovery Led by Volume Growth and Enriched Product Mix
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 4.0% sequentially in Q1 FY2027.
- Revenue of ₹1,887 Cr is 13.6% higher year-on-year.
- Revenue has compounded at 4.2% annualised over the last 10 quarters.
- Net profit of ₹130 Cr is 64.5% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at -28.4% annualised across the period.
- Operating margin stands at 15.3% in Q1 FY2027.
- Operating margin expanded by 32 bps year-on-year.
- Over the last two years operating margin has contracted by 101 bps.
- PBT margin is 9.7%.
- Expense growth of 13.2% remained below revenue growth of 13.6%.
- Operating profit of ₹290 Cr is 16.1% higher year-on-year.
- Operating leverage continues to improve.
- 4 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 61/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 1,887 | 1,966 | 1,717 | 1,749 | 1,661 | 1,677 | 1,632 | 1,683 | 1,714 | 1,719 |
| Expenses | Stable | 1,597 | 1,689 | 1,541 | 1,525 | 1,411 | 1,460 | 1,464 | 1,419 | 1,433 | 1,360 |
| Operating Profit | Accelerating | 290 | 277 | 176 | 224 | 250 | 218 | 168 | 264 | 280 | 359 |
| Operating Margin | Stable | 15.3% | 14.1% | 10.3% | 12.8% | 15.0% | 13.0% | 10.3% | 15.7% | 16.4% | 20.9% |
| Other Income | Volatile | 31 | -0 | 3 | 20 | 23 | 12 | 22 | 32 | 29 | 57 |
| Interest | Volatile | 40 | 60 | 47 | 51 | 67 | 50 | 24 | 68 | 36 | 35 |
| Depreciation | Improving | 99 | 100 | 97 | 91 | 89 | 86 | 83 | 82 | 80 | 63 |
| Profit Before Tax | Volatile | 182 | 117 | 34 | 101 | 116 | 93 | 83 | 145 | 193 | 318 |
| Tax | Volatile | 47 | 27 | 12 | 23 | 33 | 26 | 18 | 16 | 53 | 40 |
| Net Profit | Volatile | 130 | 92 | 21 | 75 | 79 | 68 | 65 | 129 | 140 | 276 |
| Net Margin | Volatile | 6.9% | 4.7% | 1.2% | 4.3% | 4.8% | 4.0% | 4.0% | 7.6% | 8.2% | 16.0% |
Key Takeaways
- Consolidated Net Profit surged 62% YoY to ₹135.53 crore, driven by higher sales volumes and an improved product mix.
- The BCTMP (Hardwood Bleach Chemical Thermo-Mechanical Pulp) plant at CPM Gujarat commenced production on June 30, 2026.
- Operating performance improved significantly on a sequential basis, with EBITDA growing to ₹320.94 crore from ₹238.37 crore in the previous quarter.
- The company increased its stake in Borkar Packaging Private Limited to 87.36% during the quarter, deepening its presence in the packaging segment.
- Standalone results were restated following the effectiveness of a Composite Scheme of Arrangement for certain subsidiaries.
- Total Segment Revenue for Paper and Packaging grew to ₹1,829.80 crore compared to ₹1,628.65 crore in the same quarter last year.
Management Guidance
Management highlighted that higher volumes and an enriched product mix were the primary drivers for the improved quarterly performance. The completion and startup of the BCTMP plant signal a shift towards backward integration for cost efficiencies.
Sentiment Shift
Improving
After a period of margin contraction and earnings volatility in FY26, the Q1 FY27 results show a sharp recovery in both net profit and operating margins, rebounding from cyclical lows.
Outlook
The outlook is bolstered by the commencement of the new pulp plant which should improve raw material self-sufficiency. However, the company remains exposed to commodity cycles and pricing pressures inherent in the paper and packaging industry.
From the Annual Report (Key Quotes)
“Higher volume and enriched product mix have led to improved performance during the quarter.”
“The Company has commenced production of Hardwood Bleach Chemical Thermo-Mechanical Pulp ("BCTMP") Plant at Unit CPM Gujarat, from 30th June 2026.”
“The Company has acquired additional stake of 15.40% in Borkar Packaging Private Limited (BPPL) during the quarter... increasing its total shareholding to 87.36%.”
Official Quarterly Documents
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This summary is AI-generated from JK Paper Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.