UFlex posts strong Q3 margin rebound, returns to profit in 9M FY26 amid capacity expansion drive

INDIA – Flexible packaging major UFlex has reported unaudited consolidated net revenue of INR 36,329 million (US$399.36m) for the third quarter of FY2026, with sequential improvement in profitability despite ongoing macroeconomic and trade-related headwinds.

Normalized EBITDA for the quarter stood at INR 4,395 million (US$48.31m), translating to a margin of 12.1%, compared with INR 3,895 million (US$42.82m) and a 10.1% margin in Q2 FY26.

The performance reflects a 12.8% quarter-on-quarter increase in normalized EBITDA and a 200-basis-point margin expansion, achieved despite lower price realizations, the pass-through of softer raw material prices, import-driven pricing pressure, global tariff uncertainty and the GST transition.

Net profit for the quarter came in at INR 486 million (US$5.34m).

The board approved the results for the quarter ended December 31, 2025, at its meeting on February 12, 2026.

For the nine-month period (9M FY26), revenue rose 0.8% year-on-year to INR 114,157 million (US$1.25bn), compared with INR 113,226 million (US$1.24bn) in the corresponding period last year.

Sales volumes were broadly stable at 482,910 metric tonnes, up 0.1% from 482,352 metric tonnes in 9M FY25.

Net profit for the nine months reached INR 1,211 million (US$13.31m), reversing a net loss of INR 262 million (US$2.88m) in the prior-year period.

India remained UFlex’s largest market, contributing 46.1% of total revenue, followed by the Americas (18.9%), Europe (17.4%) and the Middle East & Africa (15.1%), highlighting the group’s diversified global footprint.

Ashok Chaturvedi, chairman and managing director, said the packaging industry continues to benefit from rising consumption, GST rationalization and the expansion of organized retail, alongside growing demand for value-added and sustainable solutions.

He added that extended producer responsibility (EPR) regulations are accelerating the industry’s sustainability transition across food, pharmaceutical and FMCG segments.

The company expects improving demand conditions, GST-led tailwinds and evolving global trade agreements to support gradual recovery in packaging film price realizations and volumes.

Near-term capacity additions include a greenfield aseptic packaging plant in Egypt, a woven polypropylene (WPP) bags facility in Mexico and an rPET chips recycling facility in Noida, which are expected to contribute incremental revenues and EBITDA.

Management maintained a constructive outlook for both the packaging films and integrated packaging businesses, citing early signs of demand traction and easing tariff-related uncertainty heading into FY2026.

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