State-owned Tamilnadu Newsprint and Papers Ltd (TNPL) reported a sharp rise in profit after tax (PAT) at ₹240.30 crore for the March quarter of FY26, compared to ₹22.12 crore in the same quarter last year, owing to one-time gain from reversal of deferred tax liability.
Total revenue for the quarter stood at ₹1,291.77 crore, down from ₹1,393.79 crore in the corresponding period of the previous year. The company reported EBITDA of ₹160.81 crore, marginally higher than ₹160.12 crore a year ago.
Operating performance remains steady
After accounting for ₹78.17 crore towards depreciation and amortisation and ₹44.94 crore towards finance costs, TNPL posted a profit before tax (PBT) of ₹37.70 crore, compared to ₹30.83 crore in the year-ago period.
The quarterly PAT includes a reversal of deferred tax liability (net) of ₹219.43 crore following the company’s decision to opt for the new tax regime under amendments to the Income Tax Act, 2025.
Full-year growth aided by one-time gain
For FY26, TNPL reported total revenue of ₹4,720.77 crore, up from ₹4,588.31 crore in the previous year. EBITDA rose to ₹556.66 crore from ₹525.17 crore.
After providing ₹312.90 crore towards depreciation and amortisation and ₹193.16 crore towards finance costs, the company reported a PBT of ₹50.60 crore, compared to ₹5.30 crore in the previous year.
PAT for the year stood at ₹247.75 crore against ₹3.73 crore in FY25. The annual PAT also includes the deferred tax liability reversal of ₹219.43 crore linked to the new tax regime.
Market volatility weighs on realisations
The paper and board market remained volatile during the year, with challenging conditions driven by factors such as cheaper imports from ASEAN countries, which impacted sales realisation and profitability.
Focus on premium products and margins
TNPL said it is focusing on increasing the share of higher realisation products and introducing premium offerings to improve profitability.
The company is also closely monitoring recent geopolitical developments and is taking continuous mitigation measures to manage potential risks.
Record production and sales achieved
Paper production for the year ended March 31, 2026, stood at 4,34,294 MT, compared to 4,25,166 MT in the previous year, while board production rose to 2,00,075 MT from 1,89,406 MT.
Paper sales increased to 4,47,844 MT from 4,32,055 MT, and board sales rose to 1,98,849 MT from 1,83,515 MT.
The company achieved its highest-ever production and sales of paper and board since inception, with its board unit also delivering a turnaround in profitability during the year.
Dividend announced for shareholders
The board of directors has recommended a dividend of ₹4 per share (40%) on a face value of ₹10 for FY26.