Uflex Ltd (BOM:500148) Q3 2026 Earnings Call Highlights: Strong PAT Recovery Amid Revenue Challenges

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Wed, February 18, 2026 at 10:05 AM GMT+9 4 min read

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**Revenue (9M FY26):** INR 114.157 billion, up 0.8% year-on-year.

**EBITDA (9M FY26):** INR 13.571 billion, stable compared to last year.

**Normalized EBITDA (9M FY26):** INR 13 billion, down 9.6% year-on-year, with a margin of 11.4%.

**PBT (9M FY26):** INR 1.863 billion, up 136% year-on-year.

**PAT (9M FY26):** INR 1.21 billion, compared to a loss of INR 263 million last year.

**Revenue (Q3 FY26):** INR 36.329 billion, down 3.8% year-on-year.

**Reported EBITDA (Q3 FY26):** INR 4.596 billion, up 9.7% quarter-on-quarter, with a margin expansion of 180 basis points to 12.7%.

**Normalized EBITDA (Q3 FY26):** INR 4.395 billion, up 12.8% sequentially, with a margin of 12.1%.

**Profit Before Exceptional Items (Q3 FY26):** INR 643 million, up 56% quarter-on-quarter.

**PAT (Q3 FY26):** INR 361 million, up 34% sequentially.

**EPS (Q3 FY26):** INR 5.01 per share.

**Aseptic Packaging Volume (Q3 FY26):** 1.8 billion packs, up 2.3% year-on-year.

**Aseptic Packaging Volume (9M FY26):** 5.9 billion packs, up 4.4% year-on-year.

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Release Date: February 16, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Uflex Ltd (BOM:500148) reported a stable EBITDA of INR13.571 billion for the nine months, aligning closely with last year's performance.

The company experienced a significant swing in PAT, achieving INR1.21 billion compared to a loss of INR263 million in the previous year.

Aseptic liquid packaging business showed steady growth with volumes increasing by 2.3% year-on-year for the quarter.

The company anticipates robust growth in the aseptic packaging category, expecting sales volumes to reach 8.5 billion packs in the next fiscal year.

Uflex Ltd (BOM:500148) is nearing the commissioning of three major projects, which are expected to enhance EBITDA and reduce leverage.

Negative Points

The company faced macroeconomic challenges, including US tariff-related uncertainties and GST transition impacts in India.

Revenue for Q3 was down 3.8% year-on-year, primarily due to volume softness and import-related pricing pressures.

Normalized EBITDA for the nine months decreased by 9.6% year-on-year, with margins at 11.4%.

Concerns were raised about the company's high debt levels, with investors urging for a clear roadmap for debt reduction.

Capacity utilization in certain international locations, such as Poland, was significantly low, impacting overall performance.

 






Story Continues  

Q & A Highlights

Q: Could you outline the company’s roadmap for debt reduction and any specific leverage targets or timelines over the next one to three years? A: Sumeet Kumar, Executive Vice President - Finance, explained that the current leverage level is expected to plateau. With the commissioning of three major projects nearing completion, the company anticipates improved EBITDA, which should help reduce leverage. The focus will be on operational improvements rather than just debt reduction.

Q: Which key markets are currently performing well for UFlex, and where are the challenges? A: Sumeet Kumar noted that 56% of revenue comes from overseas markets, with Egypt and Mexico being significant contributors. Challenges include US tariff-related uncertainties impacting the packaging films business. However, there are signs of recovery, particularly in India, with improved pricing for BOPET and BOPP films.

Q: What are the expected commissioning timelines for the aseptic packaging plant in Egypt, the recycling plant in Noida, and the WPP plant in Mexico? A: Sumeet Kumar stated that these projects are expected to be commissioned between the current and next quarter, with full operations anticipated by the end of the first quarter of the next fiscal year.

Q: What are the target volumes for the aseptic packaging business for FY26 and beyond? A: The company expects to reach around 8.5 billion packs for FY26, with significant growth anticipated in FY27 as the Egypt plant becomes operational. However, specific numbers for FY27 will be provided after the commissioning of the Egypt facility.

Q: What is the current blended cost of funds, and what are the current maturities for the next financial year? A: The blended cost of funds is approximately 6.9% to 7%. The current maturities for the next year are expected to be around INR 1,450 crores to INR 1,500 crores.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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