ITC paperboard and packaging revenue rises 36% after Century Pulp deal; group profit falls 20%
Revenue in ITC's Paperboards, Paper and Packaging segment rose 35.85% year on year to USD 317.8m (INR 3,015.85 crore) in the quarter to 30 September 2026. Growth was helped by the Century Pulp and Paper undertaking at Lalkuan, Uttarakhand, acquired on 1 August; like-for-like growth was 10%, and segment operating profit rose 47.59% to USD 29.7m (INR 281.93 crore). Group standalone net profit fell 20% to USD 435.9m (INR 4,137.12 crore) as a cigarette tax increase cut that segment's profit. India has extended its minimum import price on virgin multi-layered paperboard to 31 March 2027.
Why this mattersCentury Pulp adds scale to ITC's paperboard business, and the extended minimum import price keeps Indian virgin-board producers protected against imports until March 2027.
- Paperboards, Paper and Packaging revenue rose 35.85% to USD 317.8m (INR 3,015.85 crore) in the quarter to 30 September 2026; like-for-like growth was 10%
- ITC completed the acquisition of the Century Pulp and Paper undertaking at Lalkuan, Uttarakhand, on 1 August 2026
- Segment operating profit rose 47.59% to USD 29.7m (INR 281.93 crore), with PBIT margin up 320 bps
- India's minimum import price on virgin multi-layered paperboard extended to 31 March 2027
- Standalone net profit fell 20% to USD 435.9m (INR 4,137.12 crore); cigarette segment operating profit fell 27.23% after a tax increase
- Consolidated net revenue rose 5% and consolidated EBITDA fell 16%
- Group revenue from operations rose 43.85% to USD 3.23bn (INR 30,578.4 crore)
- Cigarette business operating profit fell more than 27% to USD 402m (INR 3,813 crore) after higher excise duty
- Elevated wood prices continued to pose a cost challenge for the packaging segment
- Exceptional items related to the Century Pulp and Paper acquisition were recognised in the quarter's accounts
- ITC increased its stake in Sproutlife Foods Private Limited, which is now a wholly-owned subsidiary
- A proposed amalgamation of Sproutlife Foods with ITC Ltd is pending regulatory approvals