The Indian Paper Industry accounts for about 2.6% of the world's production of paper. The estimated turnover of the industry is INR 50,000 crore approximately and its contribution to the exchequer is around INR 4500 crore. The industry provides employment to more than 0.5 million people directly and 1.5 million people indirectly. The geographical spread of the industry as well as market is mainly responsible for regional balance of production and consumption. The operating capacity of the industry currently stands at 12.75 million tons. The present paper analyses the financial performance of two paper industries namely Ballarpur Industries Limited (BILT) and Tamil Nadu Newsprint & Papers Limited (TNPL). The data has been collected from the annual reports of BILT and TNPL since 2012-13 to 2014-15. Mean, standard deviation and independent sample t-test have been used to analyze the results with the help of SPSS 19. The analysis of the data shows that there is a significant difference in BILT and TNPL with respect to Gross Profit Ratio, Net Profit Ratio, Current Ratio, Quick Ratio and Debt Equity Ratio.