Flexible packaging major UFlex has reported a resilient third quarter for FY26, posting strong sequential profitability gains despite pricing pressure, tariff uncertainty and GST-related disruption.

Consolidated net revenue for Q3 FY26 stood at Rs. 3,632.9 crore, while normalized EBITDA rose to Rs. 4,39.5 crore, delivering a 12.1% margin — up 200 basis points quarter-on-quarter. Net profit came in at Rs. 48.6 crore.

The improvement came even as sales volumes declined 3.7% year-on-year to 151,245 MT, reflecting softer realizations and pass-through of lower raw material costs.

For the first nine months of FY26, revenue edged up 0.8% YoY to Rs. 11,415.7 crore, while volumes remained stable at 482,910 MT (+0.1% YoY). Net profit rebounded sharply to Rs. 121.1 crore, compared to a net loss of Rs. 26.2 crore in the same period last year — underscoring operational resilience amid macro headwinds and supply chain disruptions.

Commenting on the results, Ashok Chaturvedi, Chairman and Managing Director, UFlex Group, said: “The packaging industry remains on a strong growth path, supported by rising consumption, GST rationalisation, and an expanding organised retail sector, alongside a growing shift toward value-added and sustainable packaging solutions. Extended producer responsibility (EPR) regulations continue to play a key role in accelerating the industry’s transition toward sustainability across food, pharmaceuticals, FMCG, and consumer sectors."

He added: "The recently presented Union Budget 2026–27, which focused on manufacturing, infrastructure, logistics, and exports, is expected to strengthen India’s packaging sector and will reinforce the country’s position as a global manufacturing hub. Additionally, India’s recent trade engagements with the EU and the US are expected to accelerate exports and create new opportunities for the domestic packaging industry by enabling faster technology adoption, fostering deeper global partnerships, and lowering capital costs.

"Our strategic expansion initiatives continue to progress well, with work on a greenfield aseptic packaging plant in Egypt, a WPP bags facility in Mexico, and a new recycling facility in Noida nearing completion. We remain confident in our ability to drive long-term growth, supported by our continued investments in innovation, new product development, recycling, and sustainable packaging solutions.”

Anantshree Chaturvedi, Vice Chairman & CEO, Flex Films International, added: “The outlook for the packaging industry remains strong. Recent trade frameworks are enhancing global supply chain efficiencies as tariff rationalization improves sourcing flexibility and competitiveness through 2026.

"With operations spanning across India, Europe, Africa, the Middle East, and the Americas, UFlex continues to ensure supply security and operational resilience across markets.

"We remain committed to delivering high performance, innovative packaging solutions to our customers while contributing to the broader economy.”

With a diversified geographic mix — 56% international revenue and 44% domestic — UFlex is positioning itself to benefit from GST-led formalization, export momentum, sustainability mandates and capacity expansions across India, Egypt and Mexico.

Despite global tariff volatility and pricing pressure, the company’s margin rebound and return to profitability over nine months signal strengthening fundamentals — and management is betting that macro tailwinds will accelerate growth in the quarters ahead.