ITC’s Paperboards, Paper & Packaging Revenue Rises 36% in Q2 FY27; Segment Profit Jumps 48%

ITC Limited reported a strong year-on-year increase in its Paperboards, Paper & Packaging business for the second quarter of FY2026-27, with segment revenue rising 35.85% to ₹3,015.85 crore, compared with ₹2,219.92 crore in the corresponding quarter of the previous financial year.

Segment results increased 47.60% to ₹281.93 crore during the quarter ended September 30, 2026, against ₹191.01 crore in Q2 FY2025-26, according to the company's unaudited standalone financial results.

For the six months ended September 30, 2026, the segment recorded revenue of ₹5,323.09 crore, representing a 22.77% increase over ₹4,335.68 crore in the corresponding period last year.

Segment results for the first half of FY2026-27 stood at ₹506.15 crore, compared with ₹353.63 crore in the first half of FY2025-26, registering growth of 43.13%.

Century Pulp and Paper acquisition adds to business scale

A significant development during the reporting period was ITC's acquisition of the pulp and paper business of Aditya Birla Real Estate Limited, operated under the name Century Pulp and Paper.

ITC completed the acquisition on August 1, 2026, on a going-concern basis through a slump sale, including the associated assets, liabilities, contracts and employees.

The company stated that the financial results of ITC and its Paperboards, Paper & Packaging segment include the financial performance of Century Pulp and Paper from August 1, 2026.

Consequently, the current-period financial figures are not directly comparable with those of previous periods.

The acquisition is therefore an important factor to consider while assessing the segment's year-on-year growth during Q2 and the first half of FY2026-27.

Segment assets increase to ₹14,026.51 crore

ITC's Paperboards, Paper & Packaging segment reported assets of ₹14,026.51 crore as of September 30, 2026, compared with ₹9,779.55 crore as of September 30, 2025.

Segment liabilities stood at ₹2,288.11 crore, against ₹1,312 crore in the corresponding period last year.

The increase in the segment's asset base reflects the expanded business scale following the inclusion of Century Pulp and Paper.

Acquisition-related exceptional expenses

ITC reported exceptional expenses of ₹25.66 crore during Q2 FY2026-27 and the six-month period, representing costs incurred in connection with the acquisition of Century Pulp and Paper.

These expenses were disclosed separately under exceptional items in the financial results.

Outlook for the paper and packaging business

ITC's Paperboards, Paper & Packaging business covers paperboards, paper, including specialty paper, and packaging, including flexibles.

The integration of Century Pulp and Paper expands ITC's presence in the pulp and paper industry and adds to the scale of its existing paper and paperboard operations.

The latest financial results highlight the increased scale of the segment, although the contribution of the acquired business means that year-on-year growth should be interpreted with the acquisition-related comparability caveat in mind.