UFlex reported a 37.6% year-on-year increase in revenue and a 92.1% rise in EBITDA in Q1 FY27, with stronger packaging-film demand across the Middle East and Africa and its 12-billion-pack aseptic packaging facility in Egypt set to become a key growth driver.
UFlex has opened FY27 with a sharp improvement in earnings, supported by higher packaging-film realisations, stronger overseas operations and increasing demand for locally and regionally sourced packaging materials.
Consolidated net revenue rose 37.6% year on year to Rs53.97 billion in the quarter ended 30 June 2026, while EBITDA increased 92.1% to Rs9.20 billion. EBITDA margin expanded by 480 basis points to 17%, its highest level in 21 quarters. Net profit after tax reached Rs4.23 billion, compared with Rs518 million in the corresponding quarter last year.
For packaging producers in the Middle East and Africa, the regional performance was particularly significant. MEA sales volumes increased 14.9% year on year and 16.5% sequentially to 39,486 tonnes, driven by stronger local and regional sourcing. Egypt led the regional growth, while UFlex’s Nigerian operations benefited from export opportunities and improving domestic demand.
The company attributed part of this demand to packaging converters seeking to reduce exposure to supply-chain disruption, elevated sea-freight costs and constraints affecting key shipping routes. UFlex’s manufacturing footprint across Egypt, Dubai and Nigeria, combined with captive PET-chip production, helped it serve regional demand as BOPET and BOPP film requirements strengthened.
The results also highlight the increasing financial importance of UFlex’s international operations. Overseas businesses accounted for around 91% of the Rs4.41 billion incremental EBITDA generated during the quarter, with Egypt, Mexico and Nigeria among the principal contributors.
Egypt aseptic investment approaches commissioning
Central to UFlex’s next phase of packaging growth is its 12-billion-pack-per-year greenfield aseptic packaging facility in Egypt. The company invested Rs1.24 billion in the project during Q1 FY27 and said the facility remained on schedule for commissioning during FY27.
Management said more than US$100 million had already been invested in the Egypt project, with approximately US$15 million of capital expenditure remaining. The facility is expected to operate at around 30% utilisation in its initial year, before moving towards 60–70% and ultimately full utilisation as production ramps up.
Arun Kumar Sharma, President, Finance and Accounts and CFO of UFlex, said: “Once our line comes up in Egypt, that will be a big revenue generator for us.”
The Egypt investment also reinforces UFlex’s strategy of locating manufacturing capacity closer to major packaging markets. Sharma said the company is seeking to build a manufacturing footprint in which the majority of turnover is served from facilities close to customers, reducing exposure to cross-border logistics disruption.
Capital shifts towards value-added packaging
UFlex is simultaneously directing more investment towards higher-value packaging segments. The company commissioned its 39,600-tonne-per-year recycling facility in Noida in April 2026 and an 80-million-unit-per-year woven polypropylene bag facility in Mexico in July.
Management indicated that 60–70% of future capital expenditure is expected to be directed towards value-added products, as UFlex seeks to improve product mix, margins and returns rather than concentrating investment on commodity packaging-film capacity.
The strategy comes as packaging-film economics are being reshaped by supply-chain localisation. UFlex said BOPP prices had increased around 25% from February 2026 levels, while BOPET prices were around 35% higher. Management attributed the movement partly to the disruption affecting West Asian supply chains and freight.
For FY27, UFlex management expects approximately 35% year-on-year growth in both revenue and EBITDA, although it cautioned that quarterly performance can fluctuate with geopolitical conditions and shipment timing.
For the packaging sector, the more consequential story behind the earnings is UFlex’s continued shift towards regional manufacturing, value-added packaging and recycling capacity. With MEA volumes already expanding at double-digit rates and its major Egyptian aseptic packaging investment approaching commercial production, the region is becoming increasingly important to the group’s growth and profitability.