Uflex (500148) Q2 25/26 earnings summary

Executive summary

• H1 FY2026 sales grew 3.2% year-over-year, with EBITDA up 4% and PAT up 150% due to lower currency translation losses; Q2 FY26 faced operational headwinds from tariffs, GST transition, and a prolonged monsoon, but these are expected to ease.

• Highest-ever volumes achieved in aseptic packaging units, up 5.5% year-over-year, with brownfield expansion at Sanand increasing capacity from 7 to 12 billion packs per annum.

• Board approved unaudited standalone and consolidated financial results for Q2 and H1 FY26, and a new packaging films manufacturing line at Dharwad, Karnataka, with a proposed capacity of 54,000 MT per annum.

• EPR rollout in India and global sustainability trends are driving demand for eco-friendly packaging, with strategic capex nearing completion.

Financial highlights

• H1 FY2026 consolidated revenue grew 3.2% year-over-year to Rs. 77,828 million; Q2 FY26 revenue was flat year-over-year at Rs. 38,610 million, with consolidated net profit after tax for Q2 FY26 at ₹2,691 lacs, a turnaround from a loss in Q2 FY25.

• Q2 FY26 normalized EBITDA was Rs. 3,895 million (down 12.4% YoY), with a margin of 10.1%; H1 FY26 normalized EBITDA was Rs. 8,593 million (down 5.9% YoY).

• EBITDA guidance for FY2026 revised to INR 1,800-1,850 crore, down from earlier INR 2,000-2,100 crore.

• Net debt as of Sep 2025: Rs. 77,533 million; net debt/normalized EBITDA: 4.51x.

• Basic and diluted EPS (consolidated) for Q2 FY26 was ₹3.73, compared to a loss of ₹8.95 in Q2 FY25.

Outlook and guidance

• FY2026 revenue growth guidance revised to 5%, with EBITDA expected at INR 1,800-1,850 crore; new capacities in Egypt, Mexico, and India expected to drive higher volumes and EBITDA in FY2027 and beyond.

• Tariff issues are expected to be resolved soon, and GST rationalization is anticipated to boost consumption and industry growth.

• Expansion projects at the Aseptic Packaging facility in Sanand, Gujarat, were successfully commissioned in October 2025.

• 10% revenue growth possible in FY2027, depending on project commissioning.