JK PAPER LTD. Q2 FY26 Results

Paper and Paper Board segment continue to face challenges arising from higher wood cost and lower sales realisation due to cheap imports. This has adversely impacted profitability across the product segments despite increased sales volume over the corresponding period. The performance of the Company’s packaging conversion subsidiaries improved during the quarter.” He further added ‘recent changes in GST rates have also had an adverse impact on the Paper & Board Industry. While GST on Paper and Boards has gone up from 12% to 18%, it has been reduced to 5% on converted products (Mono Cartons & Corrugated Boxes), resulting in inverted duty structure. In the case of Notebooks GST has become Nil, resulting in manufacturers in this sector being denied input credit. The disruption caused due to these GST changes has serious implications across the Paper and Board value chain, resulting in more expensive input costs for convertors, blockage of working capital, besides opening up the market to further cheap imports which do not have to bear the embedded taxes in domestic Paper and Board supplies. Representations have been made by Indian Paper Manufacturers Association (IPMA) and the converting industry regarding this anomaly to the Government and GST Council.”