Uflex Rallies 20% As Q1 FY 2026-27 Profit Surges 630%

Shares of flexible packaging solutions provider Uflex rallied 20% to close at ₹586.05 on the National Stock Exchange (NSE) on Monday, after the company reported a 629.6% year-on-year surge in its net profit for the June quarter of FY27 to ₹423.3 crore, up sharply from ₹58 crore in the same period last year.

The company's revenue from operations rose 37.6% year-on-year to ₹5,366 crore during the quarter, compared with ₹3,900.6 crore in the corresponding period of the previous year, according to a regulatory filing.

Margins Hit 21-Quarter High

Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter climbed 92.1% year-on-year to ₹919.8 crore, up from ₹478.8 crore in the same quarter last year, with the EBITDA margin standing at 17%, the highest level recorded by the company in the last 21 quarters, according to the filing.

Domestic packaging film sales volumes in India rose 9.1% sequentially as customers gradually resumed purchases following price hikes implemented in the March quarter of FY26. The hikes were driven by a pass-through arrangement that linked pricing to higher raw material costs.

Regional Demand And Supply Chain Dynamics

According to the company, ongoing geopolitical tensions are expected to keep raw material supply for packaging films across Asia constrained, which could help reduce imports and support stronger price realisation in India, particularly for biaxially oriented polyethylene terephthalate (BOPET), through FY27. Uflex's manufacturing presence across Egypt, Dubai and Nigeria, combined with captive production of polyethylene terephthalate (PET) chips, helped the company capture strong local and regional demand, with Egypt showing robust performance and Nigeria benefiting from additional export market traction.

Demand for both BOPET and biaxially oriented polypropylene (BOPP) films rose across the Middle East and Africa region, reflected in a 14.9% year-on-year increase in sales volumes for the quarter. The company noted that local packaging converters are increasingly prioritising regional film makers to mitigate supply chain disruptions, elevated freight costs and restricted access to key ports amid ongoing regional tensions.

Management Commentary

Chairman and Managing Director Ashok Chaturvedi said, "We have started FY27 with robust financial and operational performance. Our diversified portfolio, integrated capabilities and strong presence across key global markets continue to strengthen our competitiveness." He added that the company's core packaging business had performed strongly, supported by improved volumes, higher capacity utilisation and enhanced operating efficiencies across key markets.

CFO Arun Kumar Sharma said, "Growth was driven by operating leverage, stronger realisations, improved product mix and forex gains, reflecting the benefits of our integrated global footprint." He added that the company is entering FY27 with multiple growth levers gaining traction, including its recently commissioned recycling facility in Noida and a new bags manufacturing facility in Mexico, both of which are expected to progressively contribute to revenue and earnings as they scale up.

Sharma noted that while the September quarter is likely to see some normalisation from the exceptionally strong pricing seen in the June quarter, the company's underlying growth trajectory remains intact for the rest of FY27.

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