UFlex profit falls 50.21% QoQ as operating margin slips
Revenue declined faster than expenses, while higher interest and tax rates added to the pressure on pre-tax and net profit.
Filed 12 Nov 2026, 20:05 IST · after market close · Uflex Ltd (UFLEX)
Key takeaways
- Consolidated net profit fell 50.21% QoQ as revenue declined 10.16%.
- Operating margin narrowed 2.79 percentage points because expenses fell 7.16% versus a 10.16% revenue decline.
- Other income contributed 17.4% of pre-tax profit, while the tax rate rose 3.22 percentage points.
Price around the results
Sequential revenue decline drove the profit contraction
UFlex's consolidated net profit fell 50.21% QoQ, sharper than the 10.16% decline in revenue. Operating profit dropped 25.27%, showing that the lower sales base also reduced operating earnings. Pre-tax profit fell 48.28% as interest costs rose 7.58% and depreciation increased 3.97%.
Costs and finance charges squeezed the margin
Expenses declined 7.16%, slower than revenue, so operating margin narrowed by 2.79 percentage points. Other income accounted for 17.4% of pre-tax profit, making reported earnings partly dependent on non-operating income. The 3.22-percentage-point rise in the tax rate further reduced the conversion of pre-tax profit into net profit.
Margin remains above the Industrials peer median
UFlex's 13.77% operating margin was 2.26 percentage points above the median for 228 Industrials peers that had reported the same quarter. However, it fell from 16.56% in Q1FY27, marking a clear sequential deterioration even with the peer-relative advantage.
Aseptic and WPP investments remain the management focus
Management said UFlex is on track to reach 24 billion carton packs a year of aseptic nameplate capacity by FY2027, and that focused investments in aseptic packaging and WPP are expected to improve margins and returns. The company said the Ain Sokhna, Egypt, aseptic project is scheduled for commissioning in H1 FY27E, while the Dharwad BOPP line is scheduled to add 54,000 MTPA in FY27-28E. Management also reported Rs 4,782 million of capex in Q1 FY27 across four key projects and said European sales continued to face pressure from low-priced imports.
Results were filed after market close
The consolidated results were filed after market close on 12 Nov 2026. The immediate share-price response is therefore not part of this results read-through.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹4,821 cr | ₹5,366 cr | -10.16% |
| Other income | ₹44 cr | ₹32 cr | +38.22% |
| Expenses | ₹4,157 cr | ₹4,477 cr | -7.16% |
| Operating profit | ₹664 cr | ₹889 cr | -25.27% |
| Operating margin (%) | 13.77% | 16.56% | — |
| Interest | ₹233 cr | ₹216 cr | +7.58% |
| Depreciation | ₹221 cr | ₹213 cr | +3.97% |
| Profit before tax | ₹254 cr | ₹491 cr | -48.28% |
| Tax | ₹44 cr | ₹68 cr | -36.29% |
| Net profit | ₹211 cr | ₹423 cr | -50.21% |
| EPS (₹) | ₹29.17 | ₹58.62 | -50.24% |
Operating margin of 13.77% compares with a Industrials sector median of 11.51% across 228 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Q1 FY27 packaging-films production was 135,873 MTPQ at 85.4% utilization.
Guidance & outlook
- UFlex is on track to achieve 24 billion carton packs per year of aseptic nameplate capacity by FY2027.
- Focused investments in aseptic and WPP are expected to improve margins and returns.
Expansion
- The Ain Sokhna, Egypt greenfield aseptic project is scheduled for commissioning in H1 FY27E.
- The Dharwad brownfield BOPP line will add 54,000 MTPA and is scheduled for FY27-28E.
- UFlex incurred Rs.4,782 million of capex in Q1 FY27 across four key projects.
New initiatives
- UFlex is making focused investments in aseptic packaging and WPP.
Problems & risks
- European sales faced continued pressure from low-priced imports.
What to watch
- Whether operating margin recovers from 13.77% after the 2.79-percentage-point QoQ decline.
- Whether interest costs moderate from the 7.58% QoQ increase.
- Progress toward management's stated 24 billion carton-pack annual aseptic capacity target for FY2027.