Uflex Ltd

Financial Performance

• Q1 FY27 revenue Rs 53,972 mn; up 38% YoY
• EBITDA Rs 9,198 mn; up 92% YoY; margin 17% (480 bps expansion)
• Normalized EBITDA post forex Rs 8,373 mn; up 78% YoY; margin 15.5%
• PAT Rs 4,233 mn; net margin 7.8% vs 1.5% in Q1 FY26
• Incremental revenue Rs 14,753 mn; 80% overseas, 20% India
• Overseas ops contributed ~91% of incremental EBITDA (Rs 4,410 mn)
• Total volume 173,471 MT; YoY 1.7% growth
• Packaging Films volume 136,186 MT; YoY 4.9% growth
• Packaging volumes 37,285 MT; YoY -8.4% due to mix shift
• Capex in Q1: Rs 4,782 mn across 4 projects

Operating / Segment Update

• India Packaging Films volume 29,323 MT; up 9.1% QoQ
• Americas volume 31,724 MT; Europe 35,653 MT; MEA 39,486 MT
• Egypt Aseptic project: 12 bn packs capacity; commissioning planned FY27
• Noida Sector 155 recycling plant commissioned Apr 30, 2026
• Mexico WPP bags plant commissioned Jul 31, 2026
• Noida Sector 155 recycling capex: USD 32 mn; 39,000 MT pa commissioned
• Egypt capex: 12 bn packs project; 30% utilization in year 1; 60-70% year 2; 100% year 3
• Capex cycle for FY27 ~75% done; remaining capex ~USD 80–100 mn

Projects and Capex

• Egypt: capex remaining ~USD 15 mn; total ~USD 100 mn incurred
• Dharwad BOPP Line capex ~USD 50+ mn planned for FY27–28
• WPP bags (Mexico) capex ~USD 54 mn; commissioned
• Noida Sector 155: recycling capex ~USD 32 mn; commissioned
• Egypt Aseptic: 12 bn packs; commissioning in H1 FY27

Outlook and Guidance

• FY27 topline growth guidance: 35% YoY
• FY27 EBITDA growth expected to be similar ~35% YoY
• EBITDA margin guidance: 15.5% sustainable going forward for next 3 years
• FY28–FY29: 30%+ growth in top and bottom line; long-term CAGR target ~10% from FY26 to FY29
• Debt/EBITDA target: ~3x by FY28; further reduction by FY29
• Interest cost: expected ~1% reduction in next 1 year
• Capex allocation: ~60–70% of future capex to value-added products

Q&A Highlights

• Price realizations: BOPP up ~25%; BOPET up ~30–35% since Feb 2026
• Raw material prices rising but not as much as finished goods; normalization underway
• Egypt Aseptic commissioning targeted in H1 FY27; 2 bn packs possible this year if start Oct
• Aseptic volumes to improve from Q3; value-added shift supports margin
• Capex plan: near-term focus on value-added products; 60–70% of incremental capex
• Derisking model: overseas share ~60–65%; near-customer proximity reduces supply disruption risk
• Egypt and Noida scaling will drive 3-year CAGR; Greenland risk mitigated via geographic diversification

Balance Sheet and Cash Flows

• Debt/EBITDA 3.5x in Q1 FY27; targeted ~3x by FY28
• Interest costs expected to reduce by ~1% within 1 year
• Capex-driven growth; leverage to improve as capacities reach 100% utilization

ESG rating update

• ESG rating: 58/100 (Adequate) assigned by Crisil ESG Ratings & Analytics.
• Rating was voluntary; UFLEX did not engage Crisil for the ESG rating.
• Independent report prepared by UFLEX based on public-domain data.
• Information received on 18 August 2026.
• Rating disclosure filed under SEBI Listing Regulations Regulation 30.
• Details published on UFLEX website.
• No material impact on operations or outlook reported.
• No changes to ESG strategy or governance disclosed.
• No other material counterparties or financial implications disclosed.

Meeting Details

• Earnings conference call conducted on August 17, 2026 at 4:00 PM IST.
• Type: group earnings conference call; mode: audio recording uploaded on company website.
• Organizer: UFLEX LIMITED; purpose: earnings results discussion.
• Key participants: company management (roles not listed in filing).
• Recording available: audio recording uploaded on the company's website.

Business overview

• UFLEX operates in packaging films and flexible packaging; expanding into recycling and WPP bags.

Operational highlights

• Q1 FY27 revenue Rs 53.66bn; EBITDA Rs 9.20bn; PAT Rs 4.23bn.
• Capex incurred Rs 4,782 Mn across Egypt, Dharwad, Mexico, Noida.
• Recycling Noida 39,600 MTPA and Mexico WPP Bags 80 million units.

Financial performance

• Revenue up 37.6% YoY; EBITDA margin 17.0%; normalized EBITDA margin 15.5%.
• Domestic 38% and International 62% of revenue.
• Production volumes 173,471 MT; Packaging Films 78.5% of volumes.

Capital structure & liquidity

• No debt or equity changes disclosed.
• Capex-driven expansion across four projects.

Strategic priorities & outlook

• Growth levers: higher utilization, localized sourcing, value-added packaging films.
• Q2 normalization expected; FY27 growth trajectory intact.

Risks & mitigation

• West Asia crisis raises input costs; mitigated by localized sourcing.
• Domestic Aseptic volumes affected by duty-free imports.

Governance & leadership

• No governance changes disclosed; IR contact provided.

Consolidated financials

• Revenue from operations: 536603 lacs; Q1 FY26: 390056 lacs.
• PAT after tax: 42333 lacs.
• PBT before tax & exceptional items: 49049 lacs; exceptional items: 660 lacs.
• EPS: 58.62 Rs for the quarter.
• Total segment revenue: Flexible Packaging 520901 lacs; Engineering 15672 lacs; Others 2053 lacs.

Segment performance

• Flexible packaging segment profit before tax: 73369 lacs.
• Engineering segment profit before tax: 2680 lacs.
• Others (unallocable) segment loss: (8485) lacs.
• Total segment profit before tax and exceptional items: 49049 lacs.

Capex & capacity expansion

• Commissioned PET bottles and mixed plastics recycling unit at Noida, UP during the quarter.

Tax matters & risks

• Income tax demands for AY 2020-21 to 2023-24; ITAT proceedings pending; management confident on outcome.

Board commentary

• Board approved unaudited standalone and consolidated results for quarter ended 30 June 2026; Limited Review Reports attached.

Meeting Details

• Q1 FY27 earnings conference call for UFlex Limited on Aug 17, 2026 at 4:00 PM IST.

Participants

• President (F&A) and CFO to represent the company.
• Vice President – Head of Investor Relations.

Purpose

• Discuss Q1 FY27 earnings via conference call.

Additional Notes

• Virtual meeting with pre-registration via DiamondPass.
• Details and schedule available on the company website.

ESG rating disclosure

• Independent rating of 61/100 (Strong) assigned to UFLEX by ESG Risk Assessments and Insights Limited.
• UFLEX states it did not engage the firm; report prepared from public-domain data and disclosed 06 August 2026.

Rating action and facilities

• Total bank loan facilities rated: Rs 4600 crore.
• Long-term rating: Crisil AA-/Negative; outlook revised from Stable; rating reaffirmed.
• Short-term rating: Crisil A1+; reaffirmed.
• Rating agency: CRISIL Ratings.
• Rationale: Rating rationale available at link; not detailed in filing.
• Material change since last rating: Outlook moved to Negative; rating reaffirmed.
• Date of action: 07 August 2026.