JK Paper margin slips as costs and interest rise sequentially
Consolidated revenue grew 2.75% QoQ, but expenses rose faster and other income accounted for 13.24% of pre-tax profit.
Filed 02 Nov 2026, 17:18 IST · after market close · JK Paper Ltd (JKPAPER)
Key takeaways
- JK Paper’s consolidated operating margin narrowed by 0.77 percentage points QoQ to 14.58% as expenses grew 3.69% against 2.75% revenue growth.
- Consolidated net profit fell 24.39% QoQ as interest expense rose 34.89% and the tax rate increased 3.28 percentage points.
- At 14.58%, operating margin was 0.05 percentage points below the 14.63% median for 75 reported Commodities peers.
Price around the results
Costs grew faster than revenue in Q2FY27
Consolidated revenue increased 2.75% QoQ, but expenses rose 3.69%, reducing operating profit by 2.46% and narrowing operating margin by 0.77 percentage points. The result was a 14.58% operating margin in Q2FY27, compared with 15.35% in Q1FY27.
Higher interest and lower other income weakened profit
Interest expense rose 34.89% QoQ to Rs 53.70 cr, while other income fell 39.65% to Rs 19.16 cr. Other income still represented 13.24% of consolidated pre-tax profit, leaving a meaningful non-operating contribution to reported earnings. The tax rate rose 3.28 percentage points to 28.77%, adding to the pressure on net profit.
Margin was broadly in line with reported sector peers
JK Paper’s 14.58% operating margin was 0.05 percentage points below the 14.63% median among 75 reported Commodities peers. Sequentially, this was a second-quarter comparison against Q1FY27, when margin was 15.35%; no year-on-year comparison is included in the reported results.
Results were filed after market close
JK Paper filed its consolidated Q2FY27 results on 02 Nov 2026 at 17:18 IST, after market close. The filing therefore does not provide a same-session stock reaction to assess.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,939 cr | ₹1,887 cr | +2.75% |
| Other income | ₹19 cr | ₹32 cr | -39.65% |
| Expenses | ₹1,656 cr | ₹1,597 cr | +3.69% |
| Operating profit | ₹283 cr | ₹290 cr | -2.46% |
| Operating margin (%) | 14.58% | 15.35% | — |
| Interest | ₹54 cr | ₹40 cr | +34.89% |
| Depreciation | ₹103 cr | ₹99 cr | +4.69% |
| Profit before tax | ₹145 cr | ₹183 cr | -20.90% |
| Tax | ₹42 cr | ₹47 cr | -10.73% |
| Net profit | ₹103 cr | ₹136 cr | -24.39% |
| EPS (₹) | ₹5.59 | ₹7.18 | -22.14% |
Operating margin of 14.58% compares with a Commodities sector median of 14.63% across 75 peers that have reported Q2FY27.
What to watch
- Whether expenses grow slower than the 2.75% QoQ revenue growth recorded in Q2FY27.
- Whether operating margin recovers from 14.58% toward the 14.63% median for reported Commodities peers.
- Whether interest expense moves below the Q2FY27 level of Rs 53.70 cr.