JK Paper Q2 FY27 Results (NSE: JKPAPER)
Signal: Margin expansion
The read
The key inflection is margin recovery: EBITDA rose 28.6% YoY against 11.9% revenue growth and margin expanded 206bps to 15.88%, with raw-material intensity down 588bps and better product mix cited as the driver. This follows the prior margin contraction cycle, but the 2.4% QoQ revenue decline, 24.4% QoQ PAT fall and 34.9% QoQ finance-cost increase mean the recovery still needs confirmation across subsequent quarters.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,939.04 Cr | +11.9% | -2.4% |
| Net profit | ₹103.04 Cr | +36.8% | |
| EPS | ₹5.59 | +37.3% | |
| EBIT margin | 15.88% |
P&L walk
Revenue increased to ₹1,939.04 Cr, +11.9% YoY but -2.4% QoQ; lower raw-material intensity and the stated better product mix lifted EBITDA margin to 15.88% from 13.82% YoY, while PAT rose 36.8% YoY to ₹103.04 Cr despite a 24.4% QoQ decline.
Segments
Paper and Packaging drove the group with ₹1,893.32 Cr of revenue and ₹176.04 Cr of PBIT, while Others contributed ₹47.22 Cr of revenue and ₹3.16 Cr of PBIT; the consolidated PAT of ₹103.04 Cr was above the standalone result, showing a material subsidiary contribution.
Key positives
- Consolidated revenue rose 11.9% YoY to ₹1,939.04 Cr after the recent period of weaker growth, while management attributed improved performance to better product mix.
- EBITDA grew 28.6% YoY to ₹307.86 Cr versus revenue growth of 11.9%, a 16.7 percentage-point growth gap, with EBITDA margin expanding 206bps to 15.88%.
- Raw-material consumption fell to 59.04% of revenue from 64.92% YoY, supporting a 591bps gross-margin proxy improvement.
- Paper and Packaging PBIT increased to ₹176.04 Cr, +36.0% YoY, faster than segment revenue growth of 11.5%.
- Operating cash flow was ₹440.69 Cr in H1FY27 against H1 PAT of ₹237.76 Cr, providing positive cash conversion.
Key concerns
- Revenue declined 2.4% QoQ to ₹1,939.04 Cr and PAT declined 24.4% QoQ to ₹103.04 Cr, so the margin recovery has not yet translated into sequential earnings momentum.
- Finance costs rose 34.9% QoQ to ₹53.70 Cr, offsetting part of the operating improvement.
- The filing does not disclose paper volumes, realisations or capacity utilisation, limiting the ability to determine whether the 11.9% revenue growth was volume-led or price/mix-led.
Research and educational content only. Not investment advice.