Despite experiencing slow growth during FY24 and in the first nine months of FY25, the pulp and paper sector of India is set for a strong comeback in FY26, owing to cost stabilization and strong demand in education & packaging sectors.
Mar 18, 2025
The Indian paper industry, which is currently under pressure due to raw material costs and rising imports, is set for a rebound in FY26, over the expected stabilisation of wood pulp prices, coupled with strong demand in packaging & education sectors, and moderation in imports.
This was revealed by a recent report released by CareEdge Ratings.
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As per the report, the operating margins of the paper industry were expected to register an increase of up to 200 basis points (about 2 percent) in FY26. The paperboard and packaging segment, constituting around 55 percent of industry revenue in FY24, attracted growth of about 8.2 percent, owing to the ban on single-use plastics and the growing e-commerce sector.
The report made positive predictions for the printing and writing paper segment as well, stating that it would benefit from the National Education Policy (NEP) 2020 and increased government spending on education.
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Despite experiencing slow growth during FY24 and in the first nine months of FY25, the pulp and paper sector of India looks forward to a turnaround in FY26, said CareEdge Ratings Associate Director D. Naveen Kumar. In order to remain competitive, the manufacturers must focus on cost optimisation, modernisation and sustainable packaging innovation, he added.
