Q4 Financial Performance
JK Paper Ltd. reported a 36.4% year-on-year increase in its fourth-quarter net profit, reaching ₹90.2 crore. Revenue from operations grew substantially by 17.2% to ₹1,966 crore for the January-March period. Operational efficiency improved, with earnings before interest, tax, depreciation, and amortisation (EBITDA) rising 27.1% to ₹277 crore. This lifted the EBITDA margin to 14.1% from 13% a year earlier.
Dividend Recommendation & Labor Code Impact
The board proposed a final dividend of ₹4 per equity share for the fiscal year ending March 31, 2026, subject to shareholder approval at the annual general meeting. In a separate disclosure, JK Paper noted an exceptional item of ₹16.3 crore related to retiral obligations. This charge is linked to the impact of the government's new labour codes, implemented in November 2025.
New Pulp Plant Nears Completion
JK Paper also updated on its strategic expansion. The new Hardwood Bleach Chemical Thermo-Mechanical Pulp (BCTMP) plant is nearing completion. Commercial production is anticipated to start in the first quarter of fiscal year 2027, a development expected to significantly boost the company's pulp production capacity.
Stock Movement Despite Results
Despite the strong quarterly results and the dividend recommendation, shares of JK Paper Ltd. saw a slight dip, closing down 2.37% at ₹372.60 on the NSE on Monday, May 18.