JK Paper reports Q1 profit decline and approves acquisition of Borkar Packaging

JK Paper (JKPL) recorded a consolidated net profit of INR 812.3-million for the quarter ended 30 June 2025, marking a year-on-year decline of approximately 41–42% due to low sales realisation and elevated wood pulp costs. Revenue from operations fell by 2.3% YoY to INR 16,742-million, while raw material costs rose by about 9%.

On a sequential basis, net profit climbed 6.6% quarter-on-quarter (QoQ) to INR 81.23-crore, compared to INR 76.20-crore in Q4 FY25, although revenue dipped 0.9% QoQ to INR 1,674.16-crore.

Managing director Harsh Pati Singhania, speaking to PTI, attributed the downturn in profit year-on-year to challenges arising from cheap imports and sustained high domestic wood prices, while noting improved sequential profitability. 

Meanwhile, the board has approved acquisition of a 72% stake in Goa-headquartered Borkar Packaging for about INR 235-crore (INR 2.35-billion). JK Paper will acquire 65.7% from existing shareholders and the remainder via subscription to fresh equity; the deal is expected to complete within approximately 12 weeks. 

This marks JK Paper’s fifth acquisition in the packaging segment over the last three years, and third in the last eight months. The company has previously acquired Horizon Pack, Securipax Packaging, Manipal Utility, and Radheshyam Wellpack, all in the corrugated packaging category.

With the Borkar acquisition, JK Paper aims to consolidate its leadership in corrugated packaging and position itself among the top three players in the folding cartons market. Borkar Packaging reported INR 393.2-crore revenue in FY24, a 3% decline from INR 404.61-crore in FY23, as per stock exchange filings.