UFLEX Limited reported a "very satisfying year" for FY25, with consolidated revenue increasing by 12.4% to over ₹15,000 crore, and operational EBITDA growing by approximately 18% compared to FY24.
The company's Profit After Tax (PAT) turned positive at about ₹142 crore in FY25, a significant improvement from a loss of ₹690 crore in FY24. This was aided by a substantial reduction in exceptional losses to ₹177 crore (from ₹871 crore in FY24) primarily in Egypt and Nigeria.
Key drivers for the improved performance included:
A 10.4% increase in Packaging Films volume and 10.3% rise in sales, with improved margins. UFLEX achieved over 500,000 tons in production and sales volume for Packaging Films for the first time.
Strong contribution from Packaging Films businesses in India and Hungary, and a significant turnaround in Nigeria.
The Aseptic Packaging business performed exceptionally, utilizing over 110% of its 7 billion packs capacity by producing 7.87 billion packs in FY25. The 12 billion packs capacity expansion is in its final stages of commissioning.
For FY26, UFLEX expects a 10% revenue growth, targeting approximately ₹16,700 crore, with an EBITDA margin of 12.5% to 13%, leading to an EBITDA of around ₹2,100 crore.
The company is set to commission several new projects in FY26, which will contribute to future growth:
A WPP bags project for the pet food industry in Mexico.
Expansion of the Aseptic Packaging business in Egypt.
Recycling facilities at Noida, expected to commission later in FY26, with benefits rolling in from FY27.
UFLEX's gross debt stood at approximately ₹8,100 crore and net debt at about ₹6,800 crore as of March 31, 2025. The company plans to repay about ₹1,175 crore of long-term debt in FY26.
Capex for FY25 was approximately ₹1,726 crore, and for FY26, the company plans to spend close to ₹1,200 crore on ongoing expansion projects. The company maintains a substantial cash reserve of about ₹1,273 crore.
Management noted an industry-wide overhang for BOPP films due to new capacity additions in India starting June onwards, which might impact pricing and margins. However, value-added products are expected to offer some insulation.
UFLEX is not planning any new BOPET or BOPP capacity additions currently.
The company declared a dividend of ₹3 per share (30%).