UFlex delivered exceptional Q1 FY27 results with net profit surging 629.6% year-on-year and 116% quarter-on-quarter to ₹423.3 crore. According to reports from Business Standard and The Economic Times, the company's revenue from operations increased 37.6% YoY and 32.3% QoQ to ₹5,366 crore. Profit before tax increased 426% YoY and 129.3% QoQ to ₹490.5 crore during the quarter. The strong performance was driven by operating leverage, stronger realisations, improved product mix and forex gains. As per The Economic Times, shares rallied 16% to ₹568.35 following the announcement of these strong results.
EBITDA increased 92.1% YoY and 46.8% QoQ to ₹919.8 crore in Q1 FY27, as reported by Business Standard and The Economic Times. The EBITDA margin stood at 17% compared with 12.2% in Q1 FY26 and 15.3% in Q4 FY26, marking the highest EBITDA level for the company in the last 21 quarters. Normalized EBITDA increased 78.2% YoY and 37% QoQ to ₹837.3 crore. Total expenditure increased 29.22% YoY and 27.48% QoQ to ₹469.04 crore, with raw material consumed rising 29.49% YoY to ₹306.32 crore.
According to Business Standard, packaging films, including chips, revenue increased 48.8% YoY and 62.6% QoQ to ₹3,687.9 crore, accounting for 68.3% of total revenue. Value-added products revenue increased 18% YoY but declined 6.1% QoQ to ₹1,678.2 crore. Within value-added products, packaging revenue increased 17.6% YoY to ₹1,325.7 crore, while engineering revenue rose 55.1% YoY to ₹139.9 crore. Other value-added products revenue increased 3.8% YoY to ₹212.6 crore.
As per The Economic Times, UFlex's domestic Packaging Film sales volume increased by 9.1% sequentially in its India operations, as customers gradually resumed purchases after the price hikes in Q4 FY26. The price hike was driven by the pass-through agreement that allows higher raw material prices linked to higher price realisation. There was a surge in demand for both BOPET and BOPP Films across the MEA region as reflected in the sales volume growth of 14.9% YoY in Q1 FY27. The company's presence of plants in three key markets - Egypt, Dubai and Nigeria, and captive production of PET Chips helped capture benefits of strong local and regional demand, especially in Egypt, while Nigeria benefitted from additional traction in export markets.
As reported by Business Standard, UFlex commissioned a 39,600 MTPA recycling facility in Noida Sector 155 and an 80-million-unit WPP bags facility in Mexico during the quarter. The upcoming Egypt aseptic packaging facility is expected to further expand its global manufacturing footprint. According to The Economic Times, the war crisis will continue to result in controlled supply of raw materials for manufacturing Packaging Films across Asia, which will help in lowering imports of Packaging Films and higher price realisation in India, especially for BOPET in FY27. The company expects some normalisation in Q2 from the exceptionally strong realisations seen in Q1, while maintaining that its underlying growth trajectory remains intact.
