UFlex Limited – Investor Presentation Summary

Key Operational Highlights

  • Total global capacity of over 1.4 million MTPA across resins (463,020 MTPA), base packaging films (636,160 MTPA), inks and adhesives (69,730 MTPA), holography (20,600 MTPA), flexible packaging (100,000 MTPA), and aseptic liquid packaging (98,400 MTPA)
  • FY26 packaging films production volume: 492,779 MT at 77.5% utilization rate
  • FY25 production: 514,758 MT at 83.1% utilization; FY24 production: 466,416 MT at 78.9% utilization
  • 586 million PCR PET bottles recycled in FY26; 10,237 MT of PCR MLP waste recycled in FY26
  • 18 manufacturing facilities across 5 continents and 9 countries

Key drivers of operational performance:

  • Technological enhancements increasing capacity in Noida plant (India), CIS plant, and Hungary plant
  • Commissioning of new CPP line in CIS (18,000 MTPA) in April 2024
  • Noida recycling unit of 36,000 rPET chips and 3,600 rMLP commissioned on April 30, 2026 (Q1 FY27)
  • Strong demand recovery in Americas post-US government shutdown normalization

Segment-wise Performance

  • Packaging Films & Polyester Chips: Primary revenue driver across all geographies
  • Packaging (Flexible packaging, Liquid packaging, Holography): Significant contributor to revenue mix
  • Engineering (Machinery and Printing cylinders): Supporting business segment
  • Others VAP (Inks & Adhesives and other operating income): Additional revenue stream

Explanation of significant changes in segment performance:

  • International packaging films contributed 77.70% of total packaging films revenue in FY26
  • Domestic packaging films contributed 22.30% of total packaging films revenue in FY26

Financial Highlights

Revenue: Rs. 155,100 million (FY26)

EBITDA: Rs. 19,836 million (FY26 reported); Rs. 19,097 million (FY26 normalized)

PAT: Rs. 3,171 million (FY26 after non-controlling interest)

EPS: Rs. 43.91 (FY26)

Margins: Normalized EBITDA margin 12.3%; PAT margin 2.0%

YoY/QoQ comparison: Revenue growth of 13.0% CAGR (2020-2026); EBITDA growth of 9.8% CAGR (2020-2026)

Drivers of financial performance:

  • Improved realizations and margin expansion across Packaging Films and PET Chips businesses
  • Favorable pricing environment due to supply disruptions and raw material shortages
  • Strong demand recovery in Americas region

Key Risks:

  • West Asia conflict disrupting crude oil and petrochemical supply chains
  • Constraints in Strait of Hormuz impacting availability of key packaging film raw materials
  • Moderate food and beverage consumption affecting aseptic liquid packaging demand
  • Aggressive pricing from duty-free imports
  • Elevated imports and evolving trade/tariff dynamics in Nigeria

Geographical Revenue Split

Domestic vs Export/Regional Revenue:

Based on point of destination: Domestic 23.35%; International 76.65% (FY26)

Based on point of origin: India 24%; Middle East and Africa 19%; Europe 6%; Americas 6%; Other regions

Regional Breakdown:

  • Americas: USA, Mexico - strong demand rebound with post-government shutdown normalization
  • Europe: Hungary, Poland, CIS - demand improved sequentially but remained soft YoY
  • Middle East and Africa: Dubai, Egypt, Nigeria - demand improved both sequentially and YoY
  • Egypt: Delivered strong QoQ and YoY volume growth

Balance Sheet Snapshot

Net Debt/Equity: 1.06 (FY26)

Reserves: Part of Other Equity at Rs. 80,502 million (FY26)

Current Assets: Rs. 89,882 million (FY26)

Current Liabilities: Rs. 74,154 million (FY26)

Financial Health Insights:

  • Property, plant and equipment: Rs. 89,379 million (FY26)
  • Capital work-in-progress: Rs. 21,692 million (FY26)
  • Total Equity: Rs. 81,224 million (FY26)
  • Long-term borrowings: Rs. 58,211 million (FY26)
  • Short-term borrowings: Rs. 40,315 million (FY26)

Capex & Cash Flow Health

Capital Expenditure: Rs. 3,362 million (FY26)

Free Cash Flow: Not explicitly specified in presentation

Operating Cash Flow: Not explicitly specified in presentation

Net Debt Movement: Gross debt Rs. 98,526 million; Net debt Rs. 94,546 million (FY26)

Investment Rationale:

  • WPP (Mexico), Aseptic (Egypt), and BOPP (Dharwad) projects nearing completion
  • Expected to boost capacities, create new revenue streams, enhance profitability
  • Support balance sheet deleveraging and shareholder value creation

Strategic & R&D Initiatives

Investments in Innovation:

  • 'Project Plastic Fix' recycling initiatives with 79,020 MTPA rPET capacity and 34,897 MTPA rMLP capacity
  • ASCLEPIUS film made of 100% rPET chips
  • Injection molding items from rMLP granules

Expected impact on growth:

  • Recycling capacities underpin Rs. 8.5 billion+ revenue potential in sustainability sector
  • FDA & FSSAI approved food-contact rPET applications

Strategic Rationale:

  • Creating environment-friendly sustainable brand
  • Dedicated efforts on recycling, re-use and reducing waste
  • Extended Producer Responsibility compliance

Industry Trends & Business Environment

Macro/Industry Trends:

  • India FMCG industry volume growth moderated to 0.9% in Q4 FY26
  • West Asia conflict disrupting crude oil and petrochemical supply chains
  • Supply disruptions creating favorable pricing environment
  • Aseptic Liquid Packaging demand recovered sequentially with seasonal tailwinds

Impact on Company:

  • Improved realizations and margin expansion across businesses
  • Raw material shortages affecting availability of MEG and polypropylene
  • Moderate year-on-year demand in some segments

Management Commentary & Growth Outlook

Strategic Outlook:

  • Focused investments in aseptic, WPP and recycling to accelerate growth
  • Enhance profitability and improve cash generation
  • Create circular and greener future through Project Plastic Fix

FY Guidance:

  • Not explicitly provided in the presentation

Market Share Targets:

  • Not explicitly provided in the presentation

Risks and Opportunities:

  • Extended Producer Responsibility guidelines mandating minimum recycling levels
  • Environmental compensation for shortfall in EPR targets
  • Growing sustainability sector with regulatory support

ESG Updates

  • Project Plastic Fix initiatives turning waste into wealth
  • 100+ product variants across 6 facilities operational since 1995
  • Compliance with Plastic Waste Management (Amendment) Rules, 2022
  • EPR guidelines with year-wise targets for recycling and recycled content incorporation

Shareholding Information

  • Promoter Group: 44.58% (March 2026)
  • FIIs, FPIs and FC: 16.78% (March 2026)
  • CBO, Insurance and FI: 14.33% (March 2026)
  • Others: 24.03% (March 2026)
  • Market Cap: ~Rs. 24,075 million (March 30, 2026)
  • Outstanding shares: 72.2 million

Management Team

  • Professional management with average experience >25 years
  • Key leaders: Ashok Chaturvedi (Chairman & MD), Jeevaraj Gopal Pillai (Whole Time Director), Sumeet Kumar (EVP Finance), Anantshree Chaturvedi (Vice Chairman & CEO Flex Films), Apoorvshree Chaturvedi (Director Global Operations)

Exchange Rates

  • USD to INR: 94.65 (closing), 88.42 (average) FY26
  • GBP to INR: 125.63 (closing), 118.59 (average) FY26
  • EURO to INR: 109.01 (closing), 102.55 (average) FY26
  • USD to MXN: 18.10 (closing), 18.50 (average) FY26
  • USD to Poland Zl: 3.74 (closing), 3.67 (average) FY26
  • USD to NGN: 1,387.00 (closing), 1,481.97 (average) FY26
  • EURO to USD: 1.15 (closing), 1.16 (average) FY26
  • USD to RUBEL: 81.30 (closing), 79.77 (average) FY26
  • USD to Egypt £: 54.64 (closing), 48.84 (average) FY26