This article first appeared on GuruFocus .
Release Date: November 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Uflex Ltd ( BOM:500148 ) reported a 3% increase in sales and a 4% increase in EBITDA on an H1 basis.
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The company achieved its highest ever volumes at the aseptic packaging units during the H1 period, with a 5.5% growth on a year-over-year basis.
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Uflex Ltd ( BOM:500148 ) announced a new packaging film line at Dharbar, which will add a BOPP facility with a capacity of 54,000 tons per year.
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The company is advancing in the commissioning of three other projects, including pack recycling in Noida, which aligns with government guidelines.
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Uflex Ltd ( BOM:500148 ) expects new investments to add around 3,000 crore in top-line revenue with an EBITDA of about 500 crore at optimal capacity utilization.
Negative Points
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The quarter was flat in terms of revenue and EBITDA, with challenges such as tariff impacts and extended monsoon affecting performance.
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Imports of BOPP and PET films in India have increased significantly, impacting domestic players and leading to reduced margins.
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Exports from India have decreased, with BOPP exports down by 22% due to capacity impacts from a fire at a major player's facility.
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The company had to bear the burden of a 25% additional oil-related tariff on exports to the USA, which could not be fully passed on to customers.
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Uflex Ltd ( BOM:500148 ) revised its revenue growth guidance for the year from 10% to 5%, with an EBITDA range of 1,800 to 1,850 crore.
Q & A Highlights
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Warning! GuruFocus has detected 4 Warning Signs with BOM:500148.
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Q: Sir, my question regarding this, liquid packaging, I think this quarter compared to previous quarter, the utilization level was quite low. Are you confident that we will run our plant at 100% with the increased capacity? A: The season for this is from January to mid-August. The seasonality affects volumes, and even in previous years, Q1 versus Q2 volumes were always down due to seasonality. We expect better volumes in the last quarter of FY26 and going forward in FY27. Unidentified_7
Q: How is the margin in the BOPP and BOPET at the moment, given the significant drop due to imports? A: Margins have been affected due to imports, but domestic players have adjusted prices to check imports. This quarter should be better from that perspective. Unidentified_7
Q: What is the situation in terms of upcoming capacity in India, for both the BOPET and BOPP films? A: For BOPP, capacities are expected in FY27, with two plants coming. For BOPET, one plant is expected in FY28. The industry is adjusting to higher imports due to an unfortunate incident affecting a major player. Unidentified_7
Q: Can we expect around 10% growth in the next year at least? A: Next year, we can expect 10% growth depending on the projects coming on stream and their timing. We will provide more precise guidance closer to the commissioning of those facilities. Unidentified_7
Q: Are there any plans to restructure loans to reduce the rate of interest? A: The rate of interest is already floating, and we are continuously looking at opportunities to optimize our financial structure. Unidentified_7
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
