Tamil Nadu Newsprint & Papers delivered exceptional financial performance in Q2 FY26, posting a net profit of ₹8.10 crore compared to ₹2.59 crore in Q2 FY25, representing a remarkable 213% year-on-year surge. According to latest reports, the company achieved this turnaround from a net loss of ₹7.41 crore in the corresponding quarter of the previous year. Revenue from operations rose 20.9% YoY to ₹1,090.73 crore from ₹902.49 crore in Q2 FY25, though it was down 3.4% sequentially from ₹1,129.40 crore in Q1 FY26. The company's operating profit margin (OPM) improved to 11.29% in Q2 FY26 from 13.74% in the previous year, while EBITDA increased 2.31% YoY to ₹141.37 crore.
The company demonstrated strong operational efficiency with profit before tax (PBT) surging 156% YoY to ₹12.93 crore from ₹5.05 crore in Q2 FY25, marking a sharp turnaround from a pre-tax loss of ₹11.82 crore in Q1 FY26. Total expenditure increased 25% YoY to ₹987.02 crore from ₹789.69 crore in Q2 FY25**, but was down 5.15% sequentially from ₹1,040.63 crore in the preceding quarter. Raw material costs grew 13.8% YoY to ₹567.05 crore, while employee benefit expenses rose 2.3% YoY to ₹115.46 crore. Notably, finance costs fell 12.6% YoY to ₹50.02 crore from ₹57.24 crore, and depreciation stood at ₹78.42 crore, up 3.3% YoY. The company's tax outgo fell significantly to ₹0.77 crore from ₹2.97 crore a year earlier.
Paper production for Q2 FY26 reached 107,094 MT against 106,143 MT in the corresponding quarter of the previous year, while packaging board production increased to 50,360 MT from 44,884 MT in Q2 FY25. The company noted that overall market demands remain subdued with import of paper at lower prices and recent GST 2.0 rate changes with regard to Paper Industries have created uncertainty in the marketplace. However, management expects these uncertainties to settle over time. The company has implemented product upgradation and improvisation with renewed focus on product quality and customer service, along with increased focus on increasing the market share of higher contribution products as a measure to improve profitability.
Tamil Nadu Newsprint & Papers shares moved up 0.32% from the previous close of ₹154.02 to trade at ₹154.50 in the latest session. The company maintains a market capitalisation of ₹1,069.30 crore and demonstrates strong financial metrics with ROE of 10.70% and dividend yield of 2.61%. According to latest market data, the stock trades at a P/E ratio of 4.28x, which is considered remarkably cheap for a profitable company in the paper sector. The company has scheduled Quarterly Results meeting on September 24, 2026 and AGM on August 12, 2026, indicating active corporate governance and investor engagement.
