UFLEX Q3 FY26 results: net profit down 73.6% to ₹36.10 crore, revenue down 3.3%

How did UFLEX perform in Q3 FY26?

UFLEX reported consolidated revenue from operations of ₹3,612 crore for Q3 FY26, down 3.3% from ₹3,735 crore in Q3 FY25 and 5.7% from ₹3,832 crore in Q2 FY26. EBITDA was ₹438.72 crore, down 3.4% year on year but up 12.6% sequentially; the EBITDA margin was 12.1%, compared with 12.2% and 10.2%, respectively.

Net profit for the quarter was ₹36.10 crore, against ₹136.82 crore in Q3 FY25 and ₹26.91 crore in Q2 FY26. Profit before tax was ₹51.85 crore, while basic EPS was ₹5.01, against ₹18.95 a year earlier and ₹3.73 in the previous quarter. On a standalone basis, revenue was ₹1,815.95 crore and profit after tax was ₹2.21 crore.

What changed in UFLEX's costs and profit?

Total expenses were ₹3,569 crore, down 1.6% from ₹3,627 crore in Q3 FY25. Cost of materials fell 13.9% to ₹2,054 crore, while employee cost rose 15.0% to ₹382.74 crore, finance costs increased 10.7% to ₹192.89 crore, depreciation rose 17.6% to ₹202.37 crore and other expenses increased 3.3% to ₹705.48 crore.

Other income fell 47.3% to ₹20.84 crore from ₹39.55 crore in Q3 FY25. The quarter included an exceptional charge of ₹12.45 crore, compared with an exceptional gain of ₹25.65 crore in the year-ago quarter. Tax expense fell 64.0% to ₹12.99 crore from ₹36.11 crore. The filing attributed weaker performance to tariff uncertainty, GST transition, import-driven price pressure and portfolio optimisation.

How did the first nine months of FY26 go?

For 9M FY26, consolidated revenue was ₹11,344.60 crore, up 1.1% from ₹11,221.81 crore in 9M FY25, while total income rose 0.9% to ₹11,415.68 crore. Profit before tax increased 181.3% to ₹186.32 crore from ₹66.24 crore.

Net profit for the first nine months was ₹120.93 crore, compared with a net loss of ₹26.25 crore in 9M FY25. Basic EPS was ₹16.77, against a loss of ₹3.64 per share in the corresponding period.

How has UFLEX done over the last 8 quarters?

Revenue peaked at ₹3,900.56 crore in Q1 FY26 and fell to ₹3,612.01 crore in Q3 FY26. Net profit moved from a loss of ₹270.90 crore in Q4 FY24 to a profit of ₹36.10 crore in Q3 FY26, with the current quarter below the ₹168.57 crore reported in Q4 FY25.

The EBITDA margin bottomed at 10.2% in Q2 FY25 and Q2 FY26 before rising to 12.1% in Q3 FY26. In the latest quarter, revenue was lower sequentially, while net profit was higher than in Q2 FY26.

Which businesses drove the quarter?

Flexible Packaging Activities reported revenue of ₹3,522.27 crore in Q3 FY26, down 3.3% from ₹3,641.79 crore in Q3 FY25. Segment EBIT was ₹291.58 crore, compared with ₹325.86 crore, while the EBIT margin was 8.3%.

Engineering Activities reported revenue of ₹134.1 crore, up 15.4% from ₹116.21 crore in Q3 FY25. Segment EBIT rose to ₹25.9 crore from ₹18.19 crore, with an EBIT margin of 19.3%. Others (Unallocable) reported revenue of -₹4.85 crore and EBIT of -₹81.13 crore.

What did the auditors point out?

The statutory auditors’ limited review included an emphasis of matter concerning Income-tax demands and search proceedings under section 132(1) of the Income Tax Act, 1961. They stated that the impact could not be assessed and was currently undetermined, while noting management’s confidence that no material tax liability would devolve on the holding company; their conclusion was not modified in respect of this matter.

The auditors also stated that nothing had come to their attention that caused them to believe the accompanying statement had failed to disclose required information or contained a material misstatement. The board approved the unaudited consolidated and standalone results and the auditors’ limited review report on 12 February 2026.

What did UFLEX's management say?

Management maintained FY26 EBITDA guidance of ₹1,800–1,850 crore, implying an approximately 12% margin, and said the margin could improve further in FY27 on product mix and price recovery. It expected aseptic packaging volumes of about 8.5 billion packs in FY26 and said FY27 would show significant improvement with Egypt commissioning.

Management said three projects—Egypt aseptic packaging, Noida recycling and Mexico WPP—were expected to commission within 90 days and could contribute ₹2,000–2,500 crore of incremental revenue at full utilisation with a high-teens margin. It identified US tariff uncertainty, China-driven raw-material price volatility, GST-related demand disruption and ₹1,450–1,500 crore of current maturities due within 12 months as risks.

Sumeet Kumar, EVP Finance at UFLEX Group, said leverage was more or less at its peak, with EBITDA improvement expected to moderate it. Surajit Pal, VP and Head of Investor Relations at UFLEX Limited, said the government’s focus on manufacturing adoption would support UFLEX’s strategic investment.

How did UFLEX shares react?

After the filing, the stock was up 0.9% after five minutes and 0.9% after 15 minutes, then up 0.3% after 30 minutes. It closed 8.6% below its pre-results close on the reaction day, and was down 8.0% from that close by the next day’s close and 10.6% by five sessions.

The Packaging sector’s median move was down 0.7% on the reaction day, down 2.1% by the next day’s close and down 2.4% by five sessions. UFLEX therefore underperformed the sector median by 8.0 percentage points, 5.9 percentage points and 8.2 percentage points, respectively; the Nifty Microcap 250 fell 1.5%, 2.2% and 2.5% over the same periods.

Earlier reaction-day moves were negative on 13 November 2025, 13 August 2025, 17 May 2025, 13 November 2024, 12 August 2024 and 28 May 2024, at 2.3%, 1.9%, 1.4%, 4.3%, 9.0% and 3.3%, respectively. The reaction day on 14 February 2025 was positive at 4.9%.

How did other Packaging companies do?

A total of 54 other Packaging companies that had filed for the quarter had a median revenue growth of 1.7%. Of these, 16 grew more slowly than UFLEX and 38 grew faster than UFLEX.

Among 60 peers for which profit was compared, 34 reported higher profit. The peer comparison was as of 5 November 2026.