Uflex forecasts FY26 revenue growth, expands capacity amid market headwinds

Uflex Limited reported flat revenue and EBITDA for Q2 FY26, but H1 FY26 sales grew 3% and EBITDA increased 4%, with PAT up 150% year-on-year. The company achieved its highest-ever volumes in aseptic packaging during H1, growing 5.5% year-on-year, and commissioned extended capacity to 12 billion packs per year in October, expecting better volumes in Q4 FY26 and FY27. Uflex announced a new BOPP packaging film line at Dharwad with a capacity of 54,000 tons per year, expected to be operational in FY28.

The company is also advancing three other projects: PET recycling in Noida, an aseptic packaging plant in Egypt, and a WPP plant in Mexico. The PET recycling plant is expected to be operational by March 2026. Total new investments are expected to add approximately Rs. 3,000 crores in top-line revenue and Rs. 500 crores in EBITDA at optimal capacity utilization.

For the full year FY26, Uflex revised its revenue growth guidance to 5% and EBITDA to a range of Rs. 1,800 crores to Rs. 1,850 crores, compared to Rs. 1,700 crores last year. The company expects 10% growth in FY27, dependent on project commissioning timelines. Net debt stands at Rs. 7,750 crores, with plans to repay Rs. 1,500 crores by March 2027, reducing net debt to Rs. 500 crores in the balance sheet of FY27.