JK Paper unreviewed entities added Rs 206.18 crore revenue

JK Paper Limited included Rs 206.18 crore of revenue and Rs 11.12 crore of profit after tax from seven subsidiaries and one partnership firm in consolidated results for the quarter ended September 30, 2026. Lodha & Co LLP said the underlying interim information was unreviewed, while management described it as not material to the group.

What did unreviewed entities contribute to JK Paper’s results?

The seven subsidiaries and one partnership firm contributed Rs 206.18 crore of total revenue, Rs 11.12 crore of net profit after tax and Rs 11.12 crore of total comprehensive income in the quarter ended September 30, 2026. The matching profit and comprehensive-income figures are those disclosed by the auditor in its other-matters section.

For the half year ended September 30, 2026, the same entities recorded Rs 413.74 crore of revenue, Rs 35.47 crore of profit after tax and Rs 35.47 crore of total comprehensive income. They also had net cash outflows of Rs 2.45 crore for the April-to-September 2026 period; the filing does not give their standalone quarterly cash-flow figure.

The unreviewed entities held total assets of Rs 1,004.85 crore at September 30, 2026. JK Paper reported consolidated total assets of Rs 10,467.56 crore at that date, down from Rs 10,538.25 crore at March 31, 2026, while the auditor recorded management’s view that the unreviewed information was not material to the group.

Which JK Paper entities were in the reporting perimeter?

JK Paper’s auditor listed eight subsidiaries, one associate and one jointly controlled entity in the consolidated-results perimeter for the period ended September 30, 2026. The eight subsidiaries named were Jaykaypur Infrastructure & Housing Limited, Songadh Infrastructure & Housing Limited, JK Paper International (Singapore) Pte. Limited, The Sirpur Paper Mills Limited, JKPL Packaging Products Limited, Radhesham Wellpack Private Limited, Quadragen Vethealth Private Limited and Borkar Packaging Private Limited.

The report separately identifies Suraksha Packers as a partnership firm controlled by Borkar Packaging Private Limited. Borkar Packaging Private Limited and Suraksha Packers entered the stated structure with effect from October 28, 2025, but the report does not identify which specific seven subsidiaries supplied the unreviewed interim information behind the Rs 206.18 crore quarterly revenue.

Enviro Tech Ventures Private Limited, formerly PSV Agro Products Private Limited, is listed as an associate with effect from March 15, 2026. Habras-MZZ Plantation Myanmar Company Limited is the jointly controlled entity, and JK Paper’s combined share of their net profit after tax and total comprehensive income was Rs 0.94 crore for the September 2026 quarter.

For the half year ended September 30, 2026, JK Paper’s share of profit after tax and comprehensive income from the associate and jointly controlled entity was Rs 1.55 crore. That disclosure is separate from the Rs 35.47 crore half-year profit after tax of the seven subsidiaries and partnership firm, which are therefore different reporting populations.

What was the auditor’s conclusion on JK Paper’s results?

Lodha & Co LLP said nothing had come to its attention to indicate that JK Paper’s unaudited consolidated statement for the quarter and six months ended September 30, 2026 failed to meet applicable Indian Accounting Standards or Regulation 33 of the Securities and Exchange Board of India listing regulations. The review report is dated November 2, 2026.

The firm performed the review under Standard on Review Engagements 2410, which uses inquiries and analytical procedures on interim financial information. It said a review is substantially narrower than an audit under Section 143(10) of the Companies Act, 2013, and therefore does not provide an audit opinion.

On the seven subsidiaries, partnership firm, associate and jointly controlled entity, Lodha & Co LLP said its conclusion relied solely on interim information supplied by JK Paper management. It did not modify its conclusion for this matter, while noting management’s explanation that the unreviewed interim information was not material to the group.

One subsidiary and one jointly controlled entity are outside India, according to the report. Their interim information was prepared under accounting principles applicable in their countries and converted to Indian accounting principles by JK Paper management; the auditor said it reviewed the conversion adjustments.

How did the quarter compare with the restated period?

JK Paper’s consolidated income from operations was Rs 1,939.04 crore in the quarter ended September 30, 2026, compared with Rs 1,732.08 crore in the restated quarter ended September 30, 2025. The comparison uses the restated prior-year figure following a Composite Scheme of Arrangement that became effective on March 15, 2026.

Paper and Packaging generated Rs 1,893.32 crore of segment revenue in the September 2026 quarter, while Others generated Rs 47.22 crore. After elimination of Rs 1.60 crore of inter-segment revenue, consolidated income from operations was Rs 1,939.04 crore, showing that Paper and Packaging accounted for most reported segment revenue.

Paper and Packaging segment profit before interest and tax, excluding exceptional items, rose to Rs 176.04 crore in the September 2026 quarter from Rs 128.91 crore in the restated September 2025 quarter. The Others segment reported Rs 3.16 crore, compared with Rs 1.57 crore a year earlier, although the segment disclosure does not separate results of the unreviewed entities.

The National Company Law Tribunal approved the scheme on February 3, 2026, and it became effective on March 15, 2026. The September 2025 comparative was restated under Indian Accounting Standard 103, Business Combinations, and Lodha & Co LLP said its conclusion was not modified in relation to that restatement.

Conclusion

JK Paper’s September 2026 consolidated accounts included a quantified unreviewed component of Rs 206.18 crore in quarterly revenue, Rs 11.12 crore in quarterly profit after tax and Rs 1,004.85 crore in assets. Lodha & Co LLP issued an unmodified review conclusion dated November 2, 2026, while stating that its work on these amounts relied on management-supplied interim information.

The next disclosures to watch are whether JK Paper identifies the seven subsidiaries behind the unreviewed figures and how later results retain comparability after the scheme effective March 15, 2026. The current filing leaves both the allocation of the Rs 413.74 crore half-year revenue among entities and the status of future entity-level auditor reviews unresolved.