UFlex Q1 FY26 Net Revenue at ₹39,219 Million, Net Profit Stands at ₹580 Million

UFlex Limited, India’s largest integrated flexible packaging and solutions company, reported first quarter fiscal 2026 unaudited consolidated net revenue of Rs. 39,219 million. Normalized EBITDA for the quarter was Rs. 4,698 million, and normalized EBITDA margin was 12.0%. Net profit after non-controlling interest for the quarter was Rs. 580 million.

The Board of Directors, in its meeting held on August 13, 2025, has approved and taken on record the unaudited consolidated financial results of UFlex Limited and its subsidiaries for the quarter ended June 30, 2025.

Q1FY26: India draws growth across business verticals; Europe, CIS Drive Overseas

The growth journey stayed firmly on course, with strong momentum continuing into Q1 FY26, building on the solid growth momentum achieved in H2 FY25. Despite the unpredictable tariff environment impacting market confidence and business decisions among the trading partners, the Company has successfully navigated these challenges.

UFlex is globally well-positioned to steer through the ongoing tariff-related headwinds, supported by its diversified manufacturing footprint across nine global locations. Its exports from Mexico to USA are protected by the USMCA, a free trade agreement amongst USA, Mexico, and Canada.

Total sales volume reached 170,504 MT in Q1 FY26 (excluding third-party PET chips sales volume of 29,172 MT) reflecting a 7.9% YoY and 3.2% QoQ growth. The volume mix comprised 76.1% packaging films and 23.9% packaging. Packaging films sales volume was up by 6.8% YoY and 2.3% QoQ, while packaging sales volume rose by 11.7% YoY and 6.5% QoQ, underscored sustained demand growth across both segments. 

Virgin PET chips production volume in Q1 FY26 stood at 40,566 MT in India and 40,404 MT in Egypt. Virgin PET chips third-party sales volume stood at 29,172 MT in Q1 FY26, a 77.0% YoY and 35.7% QoQ growth, with India contributing 92.4% and Egypt 7.6% to the sales volume mix. The Q1 FY26 marks the first full quarter of operations following the commissioning of the 216,000 MT virgin PET chips plant in Egypt in Q4 FY25 and it achieved capacity utilization of 74.8%. In India, the Panipat plant achieved a capacity utilization of 96.6% in Q1 FY26 compared to 65.2% in Q1 FY25 and 72.9% in Q4 FY25.

Revenue for the quarter rose to Rs. 39,219 million, reflecting a 6.4% YoY growth compared to Rs. 36,856 million in Q1 FY25. The increase in revenue was driven by higher volumes, better product mix, stronger realizations in India, robust gains in Europe and CIS markets.

Normalized EBITDA stood at Rs. 4,698 million, up 0.3% YoY compared to Rs. 4,682 million in the corresponding period last year. The normalized EBITDA margin was 12.0%, compared to 12.7% in the corresponding quarter last year. Profit After Tax (PAT) for the quarter was Rs. 580 million, compared to a loss of Rs. 985 million in Q1 FY25.

India continued to be the largest contributor, accounting for 49.1% of revenue share, followed by the Americas at 17.6%, Europe at 17.6%, and the Middle East & Africa at 13.2%. The remaining 1.8% came from other regions, underscoring a well-diversified global revenue mix.

STABLE GROWTH AMIDST TARIFF CHALLENGES

EBITDA and PAT.

• 101,358 MTPA sales volume during the quarter (including third-party PET chips sale vol. of 26,947 MT).
• Net revenue of Rs. 20,755 million.
• Normalized EBITDA of Rs. 2,574 million.
• Normalized EBITDA margin at 12.4%. 
• PAT of Rs. 572 million.

Packaging Business: Flexible Packaging, Aseptic Liquid Packaging, and Holography

In Q1 FY26, the packaging business segment — comprising Flexible Packaging, Aseptic Liquid Packaging, and Holography — recorded sales volume growth of 11.7% YoY in Q1 FY26, while revenue rose by 8.2% YoY, outperforming the broader consumption industry’s mid-single-digit growth despite a cooler summer.

The packaging business has started witnessing the onset of a positive shift in EPR (Extended Producer Responsibility) compliance, with clients beginning to explore, adopt, and integrate recycled content into their SKUs (Stock Keeping Units) to meet regulatory mandates. Notably, a few brand owners have begun gradually incorporating recycled materials into their final flexible packaging SKUs.

India is witnessing an easing in food inflation. If inflation holds at current levels, consumption is expected to recover, particularly in key categories such as food and beverages, which experienced moderate growth in Q1 FY26 due to the cooler summer. Additionally, the benefit of the repo rate reductions, Income tax relief and above normal monsoon forecast are expected to further support gradual a improvement in consumption

Source: MOSPI

Consolidated Packaging Films Business

Consolidated packaging films production volume across geographies remained largely stable, with 127,912 MT in Q1 FY26 as compared to 128,931 MT in Q1 FY25. Capacity utilization during the quarter stood at 80.4%. Sales volume of packaging films rose by 6.8% YoY and 2.3% sequentially, reaching 129,787 MT compared to 121,573 MT in Q1 FY25, driven by strong contributions from India, UAE, CIS and Hungary.

India Packaging Film: Growth secured amid surge in both volumes and utilisations

UFlex India's packaging films capacity utilisation improved to 80.7% in Q1 FY26, up 1,110 basis points YoY and 690 basis points QoQ from 69.6% in Q1 FY25. This enhanced utilisation drove a 15.9% YoY increase in production volume to 33,110 MT, compared to 28,557 MT in the same period last year. The growth reflects stronger operational efficiency and a supportive business environment.

UFlex India recorded strong growth in packaging films sales volume, which increased by 32.0% YoY and 11.8% sequentially, driven by solid performance across all major segments. In line with the volume growth, domestic packaging films revenue grew by 17.9% YoY and 5.2% QoQ. 

India’s Panipat virgin PET chips plant operated at a capacity utilization of 96.6% in Q1 FY26, up significantly from 65.2% in the same quarter last year. Third-party sales volume from the Indian facility rose by 63.5% YoY and 25.3% QoQ, reaching 26,947 MT in Q1 FY26, compared to 16,484 MT in Q1 FY25 and 21,498 MT in Q4 FY25. 

Americas Region (USA & Mexico): Inventory Drawdowns, Tariff Muted U.S. Demand 

In Q1 FY26, sales volume in the Americas declined by 0.7% YoY and 0.5% QoQ, largely caused by spillover effect of the high stockpiling of inventories by the US customers in March 2025, in anticipation of potential tariff-related uncertainties from 1st April 2025. The capacity utilisation for UFlex’s packaging films in the Americas in Q1 FY26 was 81.0% as against 100.3% in Q1 FY25. The production volume was 21,865 MT compared to 22,569 MT in the same quarter last year. The 18,000 MTPA CPP plant in Mexico, commissioned on March 26, 2025, is a recent addition. Q1 FY26 was its first operational quarter and the utilisation is expected to improve gradually in the coming quarters.

Ongoing tariff impositions by the USA on imports have created huge uncertainty and will surely create turbulence in demand and supply. Flexible packaging and film products such as BOPET, CPP, WPP bags, and rPET chips qualify under USMCA, and therefore currently face zero tariffs when exported from Mexico to the United States.

Europe (Hungary, Poland, CIS): Hungary, CIS Emerge as Key Growth Engines 

In the European region, UFlex packaging film production volume grew by 4.9% YoY & 2.0% QoQ in Q1 FY26, reaching 34,760 MT, up from 33,130 MT in Q1 FY25. Capacity utilization rose to 84.3% in Q1 FY26, marking an improvement of 400 basis points YoY and 170 basis points QoQ. The sales volume in the region had subdued growth of 0.5% YoY due to the usual seasonal holiday and higher imports. 

Business activity typically softens during July–August, which is the cultural holiday season across Europe. Similarly, December–January witnesses a seasonal slowdown due to year-end and New Year holidays. Consequently, production and sales tend to moderate during these periods, reflecting the broader holiday-driven dip in workforce availability and consumer engagement.

Packaging films imports into Europe declined sequentially in June versus May 2025, primarily due to lower export volumes from India following a change in market dynamics. With exports of packaging films from India expected to reduce in the coming months, the European markets are likely to witness a better realization.

MEA (Dubai, Egypt, Nigeria) Region: Nigeria Domestic, UAE Sales Remain Resilient

In Q1 FY26, UFlex’s packaging film plants in the MEA region operated at 76.7% capacity utilization, compared to 89.8% in Q1 FY25. Production volume was 38,177 MT from 44,675 MT in Q1 FY25, as lower offtake by USA from the Nigeria plant due to the high stockpiling of inventories and tariff imposition. As a result, Nigeria’s export share of total sales volume declined to ~26.7% in Q1 FY26 from 41.1% in Q1 FY25. This, in turn, weighed on production and utilization at the Nigeria plant. Nonetheless, in Q1 FY26, the sales volume in Nigeria’s domestic market rose 17.6% YoY, where UFlex continues to hold a market-leading share of over 70%. 

Overall, in Q1 FY26 despite the reduction in export sales volume, the total sales volume rose 0.7% YoY and 3.0% QoQ, driven mainly by strong domestic sales in Nigeria and the UAE. Once the tariff issues are settled, Nigeria exports to USA are expected to bounce back.

During the quarter, the company incurred total capital expenditure of approximately Rs. 4,117 million. This was primarily allocated to four key projects: USD 19.8 million (Rs 1,694 million) for aseptic packaging facility in Egypt, USD 5.2 million (Rs. 441 million) for the WPP bag manufacturing unit in Mexico, Rs. 205 million for debottlenecking at the Asepto facility in Sanand, India and Rs 470 million for PET and MLP recycling unit at Noida. The balance was directed towards other announced and routine capital expenditure across various units. (Exchange rate: USD 1 = INR 85.54, Q1 FY26).

Mexico: WPP plant with an annual production capacity of 80 million bags

To meet the growing demand for pet food packaging, UFlex is setting up a woven polypropylene (WPP) bags manufacturing unit in Mexico. The project has a planned capital outlay of approximately USD 50 million, of which approximately Rs. 3,627 million (USD 42.4 million) has been incurred as of June 2025. 

Egypt: Aseptic Liquid Packaging Facility with 12 billion Carton Packs Annual Capacity

Since the project announcement, approximately USD 56.7 million (~Rs. 4,850 million) of the total estimated capex of USD 126 million (~Rs. 10,778 million) has been spent. The remaining USD 69.3 million (~Rs. 5,928 million) will be invested leading up to the commissioning of the plant in FY26.

Sanand: Aseptic Liquid Packaging expansion project to increase capacity by 70%

The debottlenecking project in the Aseptic Liquid Packaging plant at Sanand aims to increase annual capacity by 5 billion carton packs, taking the total capacity to 12 billion packs. The estimated capital expenditure for the project was USD 24 million (Rs. 2,026 million). To date, USD 24.3 million (Rs. 2,076 million) has already been incurred and management expects commercial commissioning of the plant in H2 FY26.

India: PET, MLP recycling unit with an annual capacity of 39,600 MT

With increasing emphasis on sustainability and supportive legislation, UFlex plans to set up two recycling plants at a new facility in Noida to process 39,600 MTPA PCR PET bottles and mixed plastic (MLP) waste in India. The PCR PET recycling plant will have a processing capacity of 36,000 MTPA and the MLP waste recycling plant will have a processing capacity of 3,600 MTPA.

Since the project announcement, approximately Rs. 470 million of the total estimated capex of Rs. 3,171 million has been spent. The remaining Rs. 2,701 million will be invested leading up to the commissioning of the plant in FY26.

Commenting on the results, Mr. Ashok Chaturvedi, Chairman and Managing Director, UFlex Group, said, “In the first quarter of FY26, we navigated a challenging landscape shaped by cautious consumer sentiment, geopolitical tensions, and tariff-related uncertainties. Despite these headwinds, we remained focused on our strategic priorities — strengthening our business and positioning it for long-term growth by enhancing operations, driving innovation, and advancing our sustainability goals to meet today’s needs while building for the future. The quarter delivered growth in both sales volume and revenue, with an 11.7% year-on-year increase in sales volume in our packaging business and a 6.8% year-on-year increase in sales volume in our packaging films business. 

Our newly commissioned PET chips plant in Egypt achieved approximately 70% capacity utilization in its first full quarter of operations, thus ensuring raw material sufficiency for our BOPET films business. Additionally, our PET chips plant in Panipat, India, achieved approximately 97% capacity utilization in Q1 FY26. 

Our 5 billion pack per annum brownfield expansion for aseptic packaging at Sanand, 12 billion pack per annum greenfield aseptic packaging plant in Egypt, 80 million unit per annum capacity WPP bags plant in Mexico, and 39,600 MTPA greenfield PET bottle and mixed flexible waste recycling plant in Noida are all expected to be operational in FY26. These projects are expected to generate new cash flow streams, drive significant topline growth, improve margins, and enhance ROCE, creating considerable shareholder value from FY27 onward.   

On the regulatory front, the recent implementation of the EPR framework in India marks an important step forward. We see this as a catalyst for accelerating the demand for recycled materials across packaging applications. 

As the regulatory landscape and consumer confidence increasingly encourage the use of sustainable materials, we continue to strengthen our portfolio with solutions that support a circular economy. Among these are FSSAI-compliant PCR-based films manufactured using up to 100% recycled PET, single-pellet solutions that combine 30% or more recycled PET with virgin PET, enabling the use of recycled PET in food and beverage packaging, water-based inks and adhesives, and PCR-based tubes for the beauty and cosmetics industry, amongst others.

Looking ahead, the outlook for the packaging sector remains buoyant, supported by steady growth in consumer spending, rising preference for packaged food and beverages, and increasing adoption of flexible and aseptic packaging formats across multiple categories. However, we anticipate that tariff-related uncertainties may influence supply chain patterns in the coming quarters, and we are closely monitoring these developments. 

As we carry this momentum into the next quarter, we remain focused on delivering sustainable value to our customers, partners, and communities.”

Mr. Rajesh Bhatia, Group president and CFO, UFlex Limited, said, “UFlex’s growth journey remains firmly on track, building on the solid momentum of the second half of fiscal 2025, despite ongoing tariff uncertainties. Consolidated sales volumes and revenue increased year-on-year (YoY) by 7.9% and 6.4%, respectively. Normalized EBITDA rose 0.3% YoY, while reported EBITDA grew 8.0% YoY during the quarter.

Our strategic focus on higher-margin businesses, combined with improved operational efficiency, has enabled us to deliver robust volume growth across key segments and enhance profitability despite a challenging market environment. Notably, our aseptic packaging business achieved its highest-ever quarterly production and sales volumes during the period.

UFlex remains well-positioned globally to navigate ongoing tariff-related headwinds, supported by its diversified manufacturing footprint across nine locations worldwide. Exports from Mexico to the USA are protected under the USMCA, a free trade agreement among the USA, Mexico, and Canada.

With India’s EPR mandate for recycled content in plastic packaging taking effect from April 2025, UFlex is leading the way through the production of rPET chips, PCR PET “Asclepius” packaging film containing recycled content, and the recently announced FSSAI-compliant single-pellet solution, which integrates recycled PET with virgin PET and is set to be launched for commercial operations. These initiatives reinforce our commitment to sustainable innovation and support customers in meeting new regulatory requirements.

Our WPP project in Mexico, aseptic packaging projects in Sanand and Egypt, and the PCR recycling project in Noida are in advanced stages of completion and are scheduled for commissioning in FY26. These projects will not only expand operational capacity but also generate new revenue streams, enhance profitability, and support the deleveraging of the company’s balance sheet, thereby creating greater shareholder value.

Looking ahead, we remain optimistic about the business environment. The easing of food inflation, anticipated benefits from repo rate reductions, income tax relief, and the forecast of an above-normal monsoon are expected to support a gradual recovery and spur demand for food and beverages in India.”

UFlex remains committed to fostering a circular economy and supports a sustainable, green planet. This is reflected in the Company’s noteworthy progress in plastic recycling, where Company has successfully recycled 222 million PET bottles and 2,526 metric tons of MLP waste in Q1 FY26.

As per India’s EPR mandate, effective April 1, 2025, requires brand owners to incorporate recycled content in plastic packaging by FY26: 30% in rigid (Category-1), 10% in flexible plastic (Category-2), and 5% in multi-material flexible formats (Category-3).

UFlex has introduced an FSSAI-compliant single-pellet solution that blends 30% recycled PET with 70% virgin PET, offering a ready-to-use material for food and beverage packaging. This innovation simplifies EPR compliance by eliminating the need for separate material mixing and aligns with the FSSAI’s latest mandate for use of recycled content in plastic packaging by FY26. The single-pellet solution is poised to be a game-changer for food and beverage brands working to meet the new EPR requirements.

UFlex is set to commence commercial production of FSSAI-compliant single-pellet SSP-grade rPET chips for food packaging by FY27, using a 70:30 blend of virgin and recycled PET. 

The increasing focus on sustainability, coupled with regulatory interventions, is set to propel global growth in the PCR PET market. With a fully operational recycling infrastructure, UFlex is well-poised to meet the demand for recycled packaging materials. UFlex’s commitment to sustainability, combined with its capability to provide reliable, end-to-end recycling solutions, places it as a preferred producer of recycled plastic films in India and global markets.

As of June 30, 2025, the company’s gross and net debt were Rs 85,906million and Rs 73,055 million, respectively.

UFlex operates across nine countries, conducting most of its business in local currencies. However, as the company reports its financials in Indian Rupees (INR), currency translation adjustments arise. When local transaction currencies depreciate against the reporting currency (INR), it results in accounting forex losses. These losses are largely non-cash in nature and do not materially impact the company’s operational performance, underlying financial health, or cash flows.

Exceptional items represent exchange (Gain) / Loss recorded at the following subsidiaries due to movement in exchange rates, during the reported periods:

Consolidated operational and financial performance of the company.

Geography-wise production contribution to the total packaging film production vol. (%)

Plant-wise and overall packaging film production and utilization 

The exhibit below shows the condensed consolidated statement of operations for UFlex Limited for the first quarter ended June 2025 compared to the quarter ended March 2025 and June 2024:

Note: 1) Numbers in the table may not add up due to rounding-off.

2) Previous year figures have been regrouped wherever necessary.

UFlex’s operating revenue includes packaging films and value-added products. The exhibit below shows each as a percentage of operating revenues:

Packaging = Flexible packaging, Liquid packaging, and Holography

Engineering = Machinery and Printing cylinders

Others value added product (VAP) = Inks & Adhesives and other operating income

Revenue from virgin PET chips is included under Packaging Films 

UFlex’s primary expenses include cost of goods sold (COGS), power & fuel cost, personnel cost and other operating expenses. The exhibit below shows each as a percentage of total revenue:

Note: 1) Numbers in the table may not add up due to rounding off.

2) Previous year figures have been regrouped wherever necessary.

3) Other Operating expense includes expenses allocated to self-constructed assets.

4) COGS is cost of goods sold.

The exhibit below shows the condensed standalone statement of operations for UFlex Limited for the first quarter ended June 2025 compared to the quarter ended March 2025 and June 2024: