UFlex reports strong growth in Q4 FY25

UFlex has reported a fourth-quarter fiscal 2025 audited consolidated net revenue of 38,738 million INR (452.7 million USD). The normalized EBITDA for the year was 4,782 million INR (55.8 million USD), and the normalized EBITDA margin was 12.3 percent. Profit before exceptional items and tax for the quarter was 1,119 million INR (13 million USD).

In its meeting held on May 17, 2025, the board of directors approved and recorded the audited consolidated financial results of UFlex Limited and its subsidiaries for the quarter and the year ended March 31, 2025.

Q4FY25 – key businesses, strategic geography mix boost growth, profit

The strong momentum of the first nine months continued in Q4 FY25 despite significant disruptions in the global trading environment caused by the unpredictable imposition and suspension of tariffs since January 2025. The inconsistent tariff environment unsettled market confidence and created uncertainty.

Total sales volume reached 165,147 MT in Q4 FY25, reflecting a 4.6 percent YoY and 5.2 percent QoQ growth. The volume mix comprised 76.8 percent from packaging films and 23.2 percent from packaging, underscoring sustained demand across both segments. Revenue for the quarter rose to 38,738 million INR, a 10.8 percent increase YoY from 34,967 million INR in Q4 FY24. The growth was primarily driven by increased volume, the right product mix and pricing strategies across product categories. Normalized EBITDA stood at 4,782 million INR, up 5.1 percent YoY compared to 4,550 million INR in the year's corresponding period. The normalized EBITDA margin was at 12.3 percent. Normalized Profit After Tax (PAT) for the quarter was 986 million INR, compared to 1,188 million INR in Q4 FY24. Normalized Profit After Tax (PAT) in Q4 FY25 included an adjustment of approximately 700 million INR due to currency translation gains during the quarter, in contrast to the currency translation loss of 3,897 million INR in Q4 FY24.

In fiscal year FY25, our consolidated sales volume grew by 8.0 percent YoY to 647,499 MT, up from 599,616 MT in FY24. The sales volume comprised 77.7 percent packaging films and 22.3 percent packaging business in FY25. Total revenues increased by 12.4 percent YoY to 151,838 million INR, up from 135,098 million INR in FY24. Normalized EBITDA increased by 18.1 percent YoY to 19,024 million INR compared to 16,103 million INR in FY24. Normalized EBITDA margin expanded by 60 bps YoY to 12.5 percent from 11.9 percent in FY24. Normalized profit after tax was up by 77.5 percent YoY to 3,201 million INR compared to 1,803 million INR in FY24. Normalized Profit After Tax (PAT) for FY25 includes an adjustment of approximately 1,778 million INR for currency translation losses compared to 8,713 million INR in FY24.

India remained the largest contributor, with a 46.1 percent share, followed by the Americas at 18.4 percent, Europe at 17.4 percent, and the Middle East and Africa at 15.5 percent. The remaining 1.7 percent came from other regions, reflecting a well-diversified global revenue base.

In Q4 FY25, inflation in India continued to be moderate. By March 2025, the Consumer Price Index (CPI), as reported by MOSPI, GOI, stood at 3.34 percent, while the Consumer Food Price Index (CFPI) declined to 2.69 percent. This easing trend continued into April 2025, with the CPI falling to 3.16 percent and the CFPI to 1.78 percent. Both reached their lowest levels in 14 months, reflecting a significant decline from the peaks of 6.21 percent and 10.87 percent recorded in October 2024. We anticipate that this favorable trend in the price index will support improved volume growth and profitability in our packaging films and packaging business in FY26.

The packaging business segment—comprising flexible packaging, aseptic liquid packaging and holography—witnessed 14.4 percent YoY and 16.3 percent QoQ revenue growth in Q4FY25, reflecting better realization, the right customer mix and the addition of new brands with existing customers. The packaging business revenue grew by 11.4 percent YoY in FY 25.

Over the past four quarters, the Indian FMCG sector has experienced muted urban growth, primarily driven by elevated food inflation and rising living costs. In contrast, rural markets have consistently outperformed urban demand during this period. Rural demand momentum is expected to continue, supported by favorable monsoon forecasts for FY26, whereas urban demand, crucial for overall sector performance, is expected to stabilize, backed by premiumization, the right product mix, easing retail/ food inflation and tax reliefs announced in the FY25 budget.

Across geographies, the overall consolidated packaging films production volume grew by 3.3 percent YoY to 127,778 MT in Q4 FY25, compared to 123,714 MT in Q4 FY24. Overall capacity utilization for the quarter stood at 81.9 percent. The sales volume of packaging films increased by 5.3 sales YoY and 2.9 percent QoQ, reaching 126,907 MT, up from 120,515 MT in Q4 FY24.

For FY25, production volume grew by 10.4 percent YoY to 514,758 MT, compared to 466,416 MT in FY24, underscoring the company’s focus on operational efficiency and continued market demand. Capacity utilization improved by 415 basis points, reaching 83.1 percent in FY25 versus 78.9 percent in the previous year, reflecting enhanced resource optimization and improved plant efficiency. The annual sales volume of packaging films grew by 10.3 percent YoY, reaching 503,153 MT in FY25, compared to 456,179 MT in FY24.

India packaging film – growth accelerates on demand tailwind

The business outlook for packaging films in India remained upbeat in Q4 FY25, supported by steady demand across key end-user industries, improved operating efficiencies, and sustained consumption growth. Favorable demographics, evolving consumer preferences, rising demand for branded packaged food and beverage, growing urbanization and higher disposable incomes will continue maintaining high single-digit consumption growth in India.

UFlex India’s packaging film capacity utilization increased by 140 basis points to 73.8 percent in Q4 FY25, up from 72.4 percent in Q4 FY24. This improvement in utilization contributed to a 7.9 percent rise in production volume to 30,279 in Q4 FY25 compared to 28,053 in Q4 FY24, reflecting increased operational performance and a positive business outlook. Sales volume followed a similar pattern, increasing by 17.2 percent YoY, driven by strong demand across key segments and markets.

For the full year FY25, UFlex India’s packaging film segment delivered a steady performance, with production volume rising by 5.8 percent YoY to 121,842 MT, compared to 115,202 MT in FY24. Sales volume also reflected this positive trend, growing by 3.8 percent to 109,738 MT, up from 105,771 MT in the previous fiscal.

Americas Region (US and Mexico) – growth on track at the epicenter of tariff uncertainty

Tariff-related uncertainties in the Americas have compelled businesses and consumers to adopt a more cautious approach to spending and investment decisions. The unpredictability around trade, intermittent tariff implementations, and shifting import-export regulations have created a challenging environment for business planning. This has not only impacted business spending but also affected consumer sentiment, leading to cautious discretionary spending.

Nevertheless, UFlex’s packaging films capacity utilization rose by 710 basis points to 97.8 percent in Q4 FY25, up from 90.6 percent in Q4 FY24 in the Americas region. The increased utilization resulted in a 7.8 percent YoY growth in production volume to 21,995 MT, compared to 20,396 MT in Q4 FY24, demonstrating a strategic focus to enhance operational efficiency. Sales volume in the region also grew by 7.6 percent YoY. This performance highlights the inherent strength and adaptability of the company’s business model in the Americas, reaffirming its ability to navigate and succeed amid global uncertainties.

In FY25, the capacity utilization in the Americas region increased by 380 basis points to 97.5 percent, up from 93.7 percent in FY24. The higher utilization contributed to a 5.8 percent growth in production volume, reaching 89,230 MT in FY25 compared to 84,316 MT in FY24. The Americas region’s annual sales volume also demonstrated strong growth, increasing by 19.0 percent during the financial year FY25.

Europe (Hungary, Poland, CIS) – Hungary led with a future-ready film focus

In the European region, UFlex packaging film production volume grew by 1.8 percent in Q4 FY25, reaching 34,066 MT, up from 33,453 MT in Q4 FY24. Capacity utilization stood at 82.6 percent during the quarter. In Q4 FY25, UFlex plants in the region recorded an 11.4 percent YoY increase in sales volume, reflecting steady demand. Correspondingly, revenue rose by 14.5 percent compared to last year's quarter, underscoring a healthy market performance.

In FY25, capacity utilization increased by 480 basis points, driving a 19.3 percent rise in production volume. This growth was primarily supported by the Hungary BOPP line, where utilization surged by 2,210 basis points to 105.0 percent in FY25, up from 82.9 percent in FY24. Additionally, Poland’s utilization improved by 520 basis points to 70.2 percent, compared to 65 percent in FY24. Sales volume in the region rose by 22.9 percent YoY. Hungary led with a 26 percent increase in sales volume, while the CIS region, boosted by the commissioning of a new CPP line in Q1 FY25, posted a strong 42.4 percent growth. This robust operational and sales performance translated into a 26.0 percent YoY revenue increase in FY25, reflecting sustained demand for packaging films and a positive contribution to overall business growth.

MEA (Dubai, Egypt, Nigeria) Region – remained resilient amid challenges

In Q4 FY25, the capacity utilization of UFlex in its packaging film plants in the MEA (Middle East and Africa) region remained almost constant at 83.3 percent, compared to 84.0 percent in Q4 FY24. Production volume stood at 41,438 MT, marginally lower than 41,812 MT in the same quarter last year. A key highlight was the strong performance of the Nigeria BOPET line, where capacity utilization rose to 82.5 percent in Q4 FY25 from 67.2 percent in Q4 FY24, driving a notable increase in production volume to 9,277 MT from 7,558 MT year-on-year. The Q4 FY25 sales volume declined by 9.7 percent YoY, primarily due to subdued demand and increased import inflows from other geographies.

In FY25, capacity utilization in the region rose by 750 basis points to 84.8 percent, up from 77.3 percent in FY24. Production volume increased by 9.8 percent to 168,743 MT, compared to 153,743 MT in the previous year. This better annual performance was primarily driven by the Nigeria facility, which achieved 78.5 percent utilization and produced 35,337 MT in FY25, up from 58.8 percent utilization and 26,444 MT in FY24. We expect further improvement in utilization and sales volume in FY26.