Flexible packaging company UFlex demonstrated business resilience in the third quarter of FY2026, achieving a significant sequential improvement in profitability despite challenges such as price pressures, tariff fluctuations, and tax policy adjustments.

Data shows that UFlex's consolidated net revenue for Q3 was INR 363.29 billion, with normalized EBITDA reaching INR 43.95 billion. The margin increased by 200 basis points sequentially to 12.1%. Net profit stood at INR 4.86 billion. This improvement was achieved against a backdrop of a 3.7% year-on-year decline in sales volume to 151,245 metric tons, primarily driven by cost control and the pass-through of raw material price changes.

For the first nine months of FY2026, UFlex's revenue grew 0.8% year-on-year to INR 1,141.57 billion, with sales volume remaining largely stable at 482,910 metric tons. Net profit improved significantly to INR 12.11 billion, compared to a net loss of INR 2.62 billion in the same period last year, highlighting the company's operational resilience amidst macroeconomic volatility and supply chain challenges.

Ashok Chaturvedi, Chairman and Managing Director of the UFlex Group, stated: "The packaging industry remains on a growth trajectory, supported by rising consumption, tax rationalization, retail expansion, and the shift towards value-added and sustainable packaging solutions. Extended Producer Responsibility regulations play a key role in driving the sustainability transition across sectors like food, pharmaceuticals, and FMCG."

He added: "The recently announced FY2026-27 Union Budget, with its focus on manufacturing, infrastructure, and exports, is expected to strengthen India's packaging industry and solidify its position as a global manufacturing hub. Trade engagements with the EU and the US are poised to accelerate exports, creating opportunities for the domestic packaging sector through new technologies, partnerships, and lower capital costs."

"Our strategic expansion is progressing well, with the green aseptic packaging plant in Egypt, the WPP bag facility in Mexico, and the new recycling facility in Noida nearing completion. We remain confident in long-term growth, underpinned by continuous investments in innovation, product development, and sustainable packaging solutions."

Anantshree Chaturvedi, Vice Chairman and CEO of Flex Films International, added: "The outlook for the packaging industry remains positive. Recent trade frameworks have enhanced global supply chain efficiency, and tariff rationalization is aiding improved sourcing flexibility and competitiveness."

"UFlex's operations across India, Europe, Africa, the Middle East, and the Americas ensure supply security and business resilience across markets. We are committed to delivering high-performance, innovative packaging solutions to our customers while contributing to economic development."

With 56% of revenue from international operations and 44% from domestic, UFlex is well-positioned to leverage tax formalization, export growth, sustainability requirements, and capacity expansion in India, Egypt, and Mexico. Despite persistent global tariff and price pressures, the company's margin recovery and profit rebound in the first nine months indicate strengthening fundamentals. Management expects favorable macro factors to drive accelerated growth in the coming quarters.