Containers & Packaging company Uflex announced Q1FY26 results Sales volume: 170,504 MT (+3.2% QoQ, +7.9% YoY) Pkg. films: 76.1%. Packaging: 23.9%. Revenue: Rs 39,219 million (+1.2% QoQ, +6.4% YoY) Domestic: 44%. International: 56%. EBITDA: Rs 4,698 million (-2.3% QoQ, +0.3%YoY) EBITDA Margin: +12.0% Margin (-40 bps QoQ, -70 bps YoY). PAT: Rs 580 million PAT Margin: +1.5% for Q1FY26. Ashok Chaturvedi, Chairman & Managing Director, UFlex Group, said: “In Q1FY26, 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% YoY increase in sales volume in our packaging business and a 6.8% YoY 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 utilisation 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.” Rajesh Bhatia, Group president and CFO, UFlex, said: “UFlex’s growth journey remains firmly on track, building on the solid momentum of the second half of fiscal 2025 notwithstanding ongoing tariff uncertainties. Consolidated sales volumes and revenue increased YoY by 7.9% and 6.4% respectively, and normalised EBITDA rose 0.3% YoY, while reported EBITDA rose 8.0% YoY during the quarter. Our strategic focus on higher-margin businesses, coupled with improved operational efficiency, has enabled us to deliver robust volume growth across key segments and improve profitability in the face of a challenging market landscape. Our aseptic packaging business achieved its highest-ever quarterly production and sales volumes during the quarter. UFlex is globally well-positioned to steer through the ongoing tariff-related headwinds, supported by its diversified manufacturing footprint across nine global locations. The USMCA, a free trade agreement among the USA, Mexico, and Canada, protects the company’s exports from Mexico to the USA. With India’s EPR mandate for recycled content in plastic packaging in effect from April 2025, UFlex is leading with the production of rPET chips, PCR PET ‘Asclepius’ packaging film containing recycled content, and a forthcoming FSSAI-compliant single-pellet rPET Chips, reinforcing our commitment to sustainable innovation and supporting customers in meeting new regulatory requirements. 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. With the WPP project in Mexico, aseptic projects in Sanand and Egypt, and the PCR recycling project in Noida are in the process of completion and scheduled for commissioning in FY26. The new projects will not only enhance operational capacities but also offer new avenues of revenue streams and better profitability going ahead. We are hopeful that earnings generated from these operations will help in deleveraging the company’s balance sheet and creating shareholder value.” Result PDF