Orient Paper Commits INR 40 Crore to Modernization Projects Amid Q2 Financial Challenges

Orient Paper and Industries reported a deepening net loss after tax of INR 30.60 crore in Q2 FY26, driven by an 88% rise in losses in its core paper and tissue segment amid rising input and energy costs. Despite the operational challenges and rising expenses, including material consumption of INR 100.03 crore, the company demonstrated a significant commitment to future growth by ramping up capital work-in-progress by nearly INR 40 crore. This investment aims at upgrading machinery and infrastructure to boost efficiency and introduce new paper and tissue grades, targeting market recovery. While the paper and tissue segment faced severe headwinds, the chemicals segment posted a positive result of INR 5.74 crore, mitigating overall losses and providing a platform for higher-margin specialty products. Orient Paper’s dual-segment strategy shows resilience, balancing profitability with modernization efforts to navigate market difficulties.