JK Paper shares ended lower on Monday, May 18, by 2.37% at ₹372.60 on the NSE, despite the company delivering strong Q4FY26 results. According to CNBCTV18.com, the stock declined despite the positive financial performance. The market reaction contrasts with the earlier surge when JK Paper shares gained 7.2% on BSE, logging an intra-day high at ₹398.45 per share after the company released its Q4FY26 results on Monday. The stock had been in demand following the strong quarterly performance, but the latest trading session saw profit-taking pressure.
The company delivered a stellar Q4 performance with consolidated net profit rising 36.4% year-on-year to ₹90.2 crore compared with ₹66.1 crore in the corresponding quarter last year. As reported by CNBCTV18.com, revenue from operations increased 17.2% to ₹1,966 crore from ₹1,677 crore year-on-year. EBITDA increased 27.1% year-on-year to ₹277 crore, while EBITDA margin improved to 14.1% from 13% a year ago. The board of directors has also recommended a final dividend of ₹4 per equity share for the financial year ended March 31, 2026, subject to shareholder approval at the upcoming annual general meeting.
According to CNBCTV18.com, the implementation of the government's four new labour codes from November 21, 2025 resulted in an assessed incremental impact of ₹16.3 crore towards retiral obligations during FY26, which has been disclosed as an exceptional item. Separately, the company announced that commissioning of its Hardwood Bleach Chemical Thermo-Mechanical Pulp (BCTMP) plant is at an advanced stage, with commercial production expected to commence in the first quarter of FY27. This strategic expansion will enhance the company's product portfolio and operational capabilities.
As reported by CNBCTV18.com, JK Paper achieved its highest-ever paper and board sales of 8.19 lakh MT during FY 2025-26 and maintained its leadership position across its product categories. The company has successfully transitioned from a cyclical volume player to a margin-focused leader, with the ability to command a 22%+ EBITDA margin in a cyclical industry being a testament to its shift toward value-added products. The surge in margins suggests that the company has successfully passed on raw material price increases to end-consumers, setting a positive benchmark for the paper sector. The integration of The Sirpur Paper Mills Ltd continues to yield operational synergies, while the company remains the market leader in branded copier paper in India and amongst the top producers of coated paper and packaging boards.
