ITC Reports Strong Recovery in Paperboards, Paper and Packaging Business in Q1 FY27

ITC Ltd. reported continued recovery in its Paperboards, Paper and Packaging business during the first quarter of FY2027, with revenue and profitability rising on the back of higher volumes, improved realizations and sustained demand for value-added and sustainable packaging products.

The Paperboards, Paper and Packaging segment recorded revenue of ₹2,307 crore, an increase of 9% year-on-year, while segment profit before interest and tax (PBIT) rose 38% to ₹224 crore, reflecting improved operating performance and margin expansion.

ITC attributed the growth to strong demand across its anchor grades of value-added products, sustainable paperboards, packaging solutions and exports. The company also reported broad-based improvement in net sales realizations, while wood costs moderated compared with the previous year, supporting profitability.

The packaging business continued to deliver robust growth across both its flexible packaging and carton packaging portfolios. According to the company, agile execution and faster turnaround times enabled the segment to provide strategic support to ITC's cigarette business while expanding new business opportunities through innovative and customized packaging solutions.

ITC said it continues to strengthen its raw material security by accelerating plantation development, expanding plantation areas and deploying satellite-based plantation monitoring to improve forestry management.

The company also highlighted ongoing industry engagement aimed at addressing low-priced imports. It noted that the Minimum Import Price (MIP) mechanism has been extended until 30 September, while an anti-dumping duty (ADD) has been recommended on imports from Indonesia to support fair market conditions.

In its standalone financial results, ITC said the Paperboards, Paper and Packaging business remained one of the company's strongest-performing segments during the quarter, supported by continued growth in value-added paperboards and packaging products, stronger export demand and improving market conditions.