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
- Consolidated profit after tax before exceptional items fell 17% to USD 449m (INR 4,249 crore) from INR 5,121 crore a year earlier
- Consolidated revenue from operations rose nearly 44% to USD 3.23bn (INR 30,578 crore)
- Consolidated EBITDA fell 15.7% to USD 596.5m (INR 5,645 crore), with margin down 665 basis points to 28%
- Cigarette segment revenue grew 1.78x year on year to INR 15,536 crore but operating income fell more than 27% to INR 3,813.45 crore after an excise duty increase took effect on 1 February 2026
- ITC's paper, paperboard and specialty papers segment PBIT rose 48% year on year in the quarter
- JK Paper's consolidated profit after tax rose 36% to Rs 102.10 crore on turnover up 11% to Rs 2,053.69 crore, and it took full ownership of Radheshyam Wellpack by buying the remaining 20% stake
- Pudumjee Paper Products' profit after tax rose 34.28% year on year to Rs 22.72 crore on revenue of Rs 227.30 crore
- Consolidated net profit fell to INR 4,229.33 crore in Q2 FY27 from INR 5,186.55 crore a year earlier, down about 18.5%
- Consolidated revenue from operations rose 43.9% to INR 30,578.40 crore, driven by excise duty rising to INR 10,309.77 crore from INR 1,754.23 crore after the February 2026 cigarette tax increase
- FMCG-Others segment revenue grew 19% year-on-year to INR 7,218.36 crore, with EBITDA margin up more than 50 basis points
- Standalone results carried INR 25.66 crore of exceptional expenses tied to the Century Pulp and Paper acquisition
- Consolidated net profit fell 18.7% to USD 443.9m (INR 4,168.40 crore), from USD 472.4m (INR 5,126.11 crore) a year earlier
- Cigarette segment profit declined 26% to USD 430.7m (INR 4,044.49 crore), which ITC attributed to changes in cigarette taxation
- Group employee benefit expenses rose 14% to USD 200.9m (INR 1,886.52 crore)
- Consolidated net revenue grew 3.9% to USD 2,158.4m (INR 20,269 crore)