TNPL’s FY26 profit surges to ₹248 cr on tax reversal; declares 40% dividend

Chennai: Tamil Nadu Newsprint and Papers Ltd (TNPL) reported a sharp jump in profitability for FY26, with profit after tax (PAT) surging to ₹248 crore from just ₹4 crore in the previous year, aided largely by a one-time deferred tax reversal.The company's board has recommended a dividend of ₹4 per share (40% on a face value of ₹10) for FY26.The state-run paper and packaging board maker's performance was supported by improved operating metrics and record production levels, even as market conditions remained volatile.Revenue for FY26 rose modestly to ₹4,721 crore from ₹4,588 crore a year earlier, while EBITDA increased to ₹557 crore from ₹525 crore.On a quarterly basis, TNPL reported a PAT of ₹240.30 crore for the March quarter, up sharply from ₹22.12 crore in the year-ago period.The company clarified that PAT for both the quarter and FY26 was significantly boosted by a deferred tax liability reversal of ₹219.43 crore following its transition to the new tax regime under the Finance Act, 2026.Revenue for the March 2026 quarter, however, declined to ₹1,292 crore from ₹1,394 crore, while EBITDA remained largely stable at ₹161 crore.TNPL flagged persistent headwinds in the paper and board market, citing pricing pressures from cheaper imports from ASEAN countries and broader volatility impacting realisations. The company said it is focusing on increasing the share of premium products to improve margins and profitability.Operationally, TNPL achieved its highest-ever production and sales since inception. Paper production rose to 4,34,294 metric tonnes (MT) in FY26 from 4,25,166 MT in FY25, while board production increased to 2,00,075 MT from 1,89,406 MT. Paper sales climbed to 4,47,844 MT and board sales to 1,98,849 MT during the year. The board segment also returned to profitability in FY26.For the March quarter, paper production stood at 1,08,314 MT, slightly lower than the previous year, while packaging board output increased to 52,948 MT.
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