UFlex Limited closed FY26 on a high note, posting a sharp recovery in fourth-quarter earnings as stronger volumes, improved realizations and operational efficiencies drove its best profitability performance in more than three years despite global supply chain disruptions and geopolitical uncertainty.

 

The flexible packaging major reported consolidated revenue of Rs. 4,097.3 crore for the quarter ended March 31, 2026, up 12.8% sequentially and 5.7% year-on-year, supported by a 10.3% quarter-on-quarter increase in sales volumes to 166,879 MT.

 

Profitability surged even faster. EBITDA climbed 36.3% sequentially and 31.8% year-on-year to Rs. 626.5 crore, while EBITDA margin expanded to 15.3%, the highest level in 14 quarters.

 

Normalized net profit more than doubled year-on-year, jumping 105.5% to Rs. 202.6 crore, and surged 316.9% from the previous quarter, highlighting a broad-based recovery across both Packaging Films and Packaging businesses.

 

For the full fiscal year, UFlex reported revenue of Rs. 15,513 crore, up 2.1%, while EBITDA rose 8.1% to Rs. 1,983.6 crore. Normalized profit after tax increased 5.0% to Rs. 336.2 crore despite a challenging operating backdrop.

 

The performance came against a backdrop of tariff-related uncertainty, GST 2.0-related demand disruptions, adverse weather conditions, and escalating geopolitical tensions in West Asia that affected crude oil and petrochemical supply chains.

 

Supply constraints linked to disruptions around the Strait of Hormuz — a critical global trade route for oil, LNG, LPG, MEG and polypropylene — weighed on the packaging films value chain during the quarter. However, UFlex said its global manufacturing footprint and alternate sourcing capabilities helped minimize operational disruption.

 

Commenting on the results, Chairman and Managing Director Ashok Chaturvedi said: “FY26 was a challenging year for the packaging industry, marked by geopolitical tensions and tariff-related uncertainties. Amid these headwinds, UFlex remained steadfast and delivered a strong operational and financial performance in Q4 and a steady performance in FY26.

 

"Iur integrated business model and global manufacturing footprint continue to be UFlex’s core strengths, enabling us to navigate volatile conditions with agility and resilience. These core strengths, coupled with our alternate sourcing capabilities globally, helped ensure one of the least disrupted supply chains in the industry during the last few challenging months."

 

He added: "We remain committed to our long-term strategy of manufacturing locally and strengthening relationships with customers and suppliers. Our emphasis on innovation, sustainability, and local production gives us a clear advantage, and as supply and delivery disruptions become more frequent, these priorities further enhance our competitive position.

 

"In early FY27, we commissioned our recycling facilities in Noida with the capacity to recycle nearly 40,000 MTPA of PET and Mixed Flexible Waste, strengthening our ability to provide recycled and alternative materials while supporting brands in meeting their EPR and ESG goals.

 

"During FY26, we also commissioned a brownfield expansion at our aseptic packaging facility in Sanand, Gujarat, increasing capacity from 7 billion to 12 billion packs per annum. Other projects, including a greenfield aseptic packaging plant in Egypt and a WPP bags manufacturing plant in Mexico, are nearing commissioning.

 

"We remain positive about the year ahead and confident that our investments in innovation, recycling, and global capabilities will continue to strengthen long-term value creation and drive sustainable growth across our businesses.”

 

The company's expansion pipeline remains a key growth driver. During FY26, UFlex commissioned additional aseptic packaging capacity in Gujarat and advanced strategic projects including a recycling facility in Noida, an aseptic packaging plant in Egypt and a WPP bags manufacturing unit in Mexico.

 

Executive Vice President, Finance, Sumeet Kumar, said the fourth quarter reflected a broad-based turnaround across the business.

 

“Q4 FY26 marked a strong finish to the year, with broad-based recovery across both the Packaging Films and Packaging businesses. Consolidated sales volumes increased 10.3% sequentially and 1.0% year-on-year, while revenue grew 12.8% QoQ and 5.7% YoY, supported by improved realizations and a better product mix. 

 

"Profitability growth was even more pronounced, with EBITDA rising 36.3% QoQ and 31.8% YoY to Rs. 6,265 million, the highest level in the last 14 quarters, while EBITDA margin expanded significantly by 260 bps QoQ and 300 bps YoY to 15.3%, also the highest in 14 quarters."

 

He added: "For FY26, despite a challenging operating environment marked by evolving global trade policies, tax reforms, weather-related demand disruptions, and supply chain volatility, UFlex delivered resilient growth. 

 

"Consolidated sales volumes increased 0.4% YoY, revenue grew 2.1% YoY, and EBITDA rose 8.1% to Rs. 19,836 million in FY26, underscoring the strength of our integrated business model and diversified global footprint in successfully steering through such challenging conditions.

 

Looking ahead, he said, the company remains confident about the long-term growth prospects of the packaging industry. Gradual normalization of supply chains, stable trade policies, and rising consumption of packaged food and beverages are expected to support demand across the packaging value chain. 

 

"At the same time, our focus remains on ramping up the utilization of recently commissioned capacities, product mix optimization, and improving asset utilization across key businesses.

 

"We are seeing encouraging traction in third-party bottle-grade PET chip sales, supported by the enhanced flexibility to produce up to 100% bottle-grade PET chips at our 168,000 MTPA facility in Panipat. 

 

"Additionally, strategic growth projects, including the near-commissioning of the 12-billion-pack aseptic packaging facility in Egypt, the 80 million WPP bags plant in Mexico, and the 39,600 MTPA recycling facilities at Noida Sector 155, are progressing as planned.”

 

With profitability recovering sharply, margins reaching multi-quarter highs and major growth projects nearing completion, UFlex enters FY27 with momentum and an expanding platform for future growth despite continuing global uncertainty.