JK Paper Q1: consolidated PAT jumps 63% YoY to ₹136 Cr on volume, mix and margin gains
PAT +62.7% YoY · revenue +13.6% · margins expanding
₹1,887.17 Cr
+13.6% YoY
₹136.27 Cr
+62.7% YoY
7.1%
+2.1pp YoY
₹7.18
JK Paper opened FY27 with a broad-based beat on profitability. Consolidated revenue rose ~13.6% YoY to ₹1,887 Cr (restated base) while net profit surged ~62.7% to ₹136.3 Cr, far outpacing the topline — the classic signature of operating leverage plus margin expansion rather than pure volume. Net margin widened to 7.2% from ~5.0% a year ago, and EBITDA margin improved to ~17.0% (from ~16.4%). Management attributes the print squarely to "higher volume and enriched product mix," and with no exceptional items on either side of the comparison, this is clean underlying growth, not an accounting artifact.
Q1 FY-2027 vs prior quarters
The margin bridge sits mainly on the cost line: paper/pulp input costs and finance costs eased relative to a growing topline, and the standalone finance cost fell to ₹30.8 Cr from ₹61.2 Cr YoY, lifting PBT. Standalone PAT rose ~48% YoY to ₹113 Cr on a more modest +6.2% revenue gain, so the consolidated numbers are the stronger story — the ~15pp gap in PAT growth between standalone (+48%) and consolidated (+63%) reflects faster contribution from subsidiaries (Sirpur Paper Mills, Borkar Packaging and the newly consolidated units). Readers comparing the two should treat consolidated as primary.
The stock went into the print at ₹414.55, up 21.2% over the past month of trading.
For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 2 consecutive quarters.
Sequentially the picture is more muted: revenue slipped ~4% QoQ off a seasonally strong March quarter, even as PAT rose ~52% QoQ — the QoQ profit jump is largely a low-base effect (Q4 carried higher costs and a small exceptional), and YoY remains the cleaner read. Two corporate developments this quarter underpin the trajectory: JK Paper commissioned its Hardwood BCTMP pulp plant at CPM Gujarat (commercial production from 30 June 2026), which backward-integrates pulp supply, and it lifted its Borkar Packaging stake to 87.36%, deepening the packaging franchise. The board also appointed Amit Dalal as an independent director.
W1
BCTMP plant ramp-up: whether in-house pulp sustains the ~17% EBITDA margin into H2 FY27
W2
Sequential revenue trend: topline slipped ~4% QoQ — watch if Q2 reverses or paper realisations stay soft
W3
Subsidiary contribution: consolidated PAT growth (+63%) ran ~15pp ahead of standalone (+48%); watch Sirpur/Borkar momentum
Clean, legible filing. No exceptional items this quarter or in the year-ago June quarter (company states nil), so YoY needs no adjustment. Consolidated PAT ₹136.27 Cr = net profit for period incl. NCI (owners of parent ₹130.12 Cr + NCI ₹6.15 Cr; already includes ₹0.61 Cr associate/JV share). Year-ago (Q1 FY26) comparatives restated for a Composite Scheme of Arrangement (Ind AS 103); our DB pre-restatement values (rev ₹1,674.16 Cr / PAT ₹85.44 Cr) differ slightly from filing's restated ₹1,661.04 Cr / ₹83.75 Cr — YoY computed on restated basis. Consolidated tax = current 43.19 + deferred 3.43.