UFlex Limited – Investor Presentation Summary

Key Operational Highlights

  • Q4 FY26 sales volumes increased 10.3% QoQ and 1.0% YoY to 166,879 MT
  • FY26 sales volumes grew 0.4% YoY to 649,789 MT
  • Packaging Films volumes declined 1.0% YoY in FY26, while Packaging volumes grew 5.1% YoY
  • Egypt vPET chips plant operated at 72.3% utilization in Q4 FY26 since commissioning in Q4 FY25
  • India's Panipat plant achieved 57.1% utilization in Q4 FY26 (23,994 MT production) despite scheduled 30-day maintenance
  • Third-party sales from Egypt plant grew 121.2% sequentially to 5,949 MT in Q4 FY26

Key drivers of operational performance: Improved realizations supported by favorable pricing environment, strong volume growth sequentially, inventory optimization, and better product mix

Segment-wise Performance

  • Packaging Films & Polyester chips business showed improved performance across India and key overseas markets
  • Flexible Packaging, Liquid packaging, and Holography businesses contributed to growth
  • Engineering segment (Machinery and Printing cylinders) maintained operations
  • Others value added products (Inks & Adhesives and other operating income) supported overall performance

Explanation of significant changes in segment performance: Growth driven by strong demand in Americas post-U.S. government shutdown normalization, improving CPG food demand, and seasonal post-holiday inventory replenishment. MEA demand improved both sequentially and year-on-year, led by strong growth in Egypt and Dubai.

Financial Highlights

Revenue: Rs. 40,973 million (Q4 FY26), Rs. 155,130 million (FY26)

EBITDA: Rs. 6,265 million (Q4 FY26), Rs. 19,836 million (FY26)

PAT: Rs. 1,960 million (Q4 FY26), Rs. 3,171 million (FY26)

EPS: Rs. 27.15 (Q4 FY26), Rs. 43.91 (FY26)

Margins: EBITDA margin 15.3% (Q4 FY26), 12.8% (FY26); PAT margin 4.8% (Q4 FY26), 2.0% (FY26)

YoY/QoQ comparison: Q4 revenue +12.8% QoQ, +5.7% YoY; Q4 EBITDA +36.3% QoQ, +31.8% YoY

Drivers of financial performance: Improved spread, inventory optimization, better product mix, higher realizations across PET chips, packaging films, laminates, and holography businesses

Key Risks: Geopolitical tensions, tariff-related uncertainties, raw material shortages, supply chain disruptions, moderate food and beverage consumption, pressure from low-cost imports

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Based on point of destination

Regional Breakdown: Performance across India, Americas, Europe, Middle East & Africa (Dubai, Egypt, Nigeria), and other international markets

Balance Sheet Snapshot

Net Debt/Equity: 1.06x (Mar 2026)

Reserves: Rs. 80,502 million (Mar 2026)

Current Assets: Rs. 89,882 million (Mar 2026)

Current Liabilities: Rs. 74,154 million (Mar 2026)

Working Capital/Leverage Metrics: Net Debt to EBITDA 4.35x (Mar 2026), Net Debt to Normalized EBITDA 4.51x (Mar 2026)

Financial Health Insights: Gross debt of Rs. 98,526 million as of Mar 2026, with net debt of Rs. 86,218 million. Long-term borrowings of Rs. 58,211 million and short-term borrowings of Rs. 40,315 million.

Capex & Cash Flow Health

Capital Expenditure: Various projects including brownfield expansion at aseptic packaging facility in Sanand, Gujarat; greenfield aseptic packaging plant in Egypt; WPP bags manufacturing plant in Mexico; recycling facilities in Noida

Free Cash Flow: Not explicitly specified in presentation

Operating Cash Flow: Not explicitly specified in presentation

Net Debt Movement: Increased from Rs. 68,432 million (Mar 2025) to Rs. 86,218 million (Mar 2026)

Investment Rationale: Focus on capacity expansion, technology upgrades, recycling initiatives, and global capabilities strengthening

Strategic & R&D Initiatives

Investments in Innovation: Commissioned recycling facilities in Noida with capacity to recycle nearly 40,000 MTPA of PET and Mixed Flexible Waste; developed TMPTA monomer for UV, LED and EB applications; various product innovations across packaging films, engineering, and holography businesses

Expected impact on growth: Strengthening ability to provide recycled and alternative materials while supporting brands in meeting their EPR and ESG goals

Strategic Rationale: Expanding into high-growth markets, reducing operational costs, enhancing sustainability credentials

Industry Trends & Business Environment

Macro/Industry Trends: India FMCG industry volume growth moderated to 0.9% in Q4 FY26; West Asia conflict disrupted crude oil and petrochemical supply chains; supply disruptions and raw material shortages created favorable pricing environment; aseptic liquid packaging demand recovered sequentially

Impact on Company: Geopolitical tensions and tariff-related uncertainties created challenges; supply chain disruptions affected raw material availability; favorable pricing environment led to improved realizations and margin expansion

Management Commentary & Growth Outlook

Strategic Outlook: Chairman Ashok Chaturvedi stated "FY26 was a challenging year for the packaging industry" but UFlex "delivered a strong operational and financial performance in Q4 and a steady performance in FY26"

FY Guidance: Not explicitly provided, but management remains "positive about the year ahead and confident that investments in innovation, recycling, and global capabilities will continue to strengthen long-term value creation"

Risks and Opportunities: Geopolitical tensions, supply chain disruptions, raw material availability, competitive pressure from low-cost imports, but opportunities in recycling, sustainability, and local production advantages

ESG Updates

  • Project Plastic Fix initiative recycling 586 million PCR PET bottles in FY26
  • 10,237 MT of PCR MLP waste recycled in FY26
  • 100+ product variants across 6 recycling facilities
  • Operational since 1995 with global recycling presence
  • Commissioned Noida recycling unit of 36,000 rPET chips and 3,600 rMLP on April 30, 2026 (Q1FY27)