UFlex Limited (BSE: 500148, NSE: UFLEX) has reported its second-quarter fiscal 2026 results, revealing a consolidated net revenue of Rs. 38,610 million for the quarter ending September 30, 2025. The company's normalized EBITDA stood at Rs. 3,895 million, representing a 10.1% margin, while the net profit after non-controlling interest was Rs. 269 million, significantly improving from a net loss of Rs. 646 million in Q2 FY25. These results illustrate UFlex's ability to maintain steady revenue growth despite various market challenges, including tariff impacts and transitional issues stemming from India's new GST framework.

In terms of sales volume, UFlex reported 161,161 MT, a decrease of 5.5% quarter-over-quarter and 3.7% year-over-year. The packaging films segment contributed 77.7% to the sales volume, while the overall revenue growth for the first half of FY26 was 3.2% year-over-year. The company’s diversified manufacturing footprint, with operations across nine global locations, has positioned it well to tackle ongoing tariff-related challenges. Notably, exports from the UFlex plant in Mexico remain unaffected by U.S. tariffs due to the USMCA agreement, providing a competitive edge in the North American market.

UFlex's packaging business has demonstrated resilience, with a 5.8% increase in sales volume during H1 FY26 compared to the same period last year. Despite facing headwinds from the GST transition and reduced consumer spending, the long-term outlook for the packaging sector remains robust. The government's revised GST framework is anticipated to improve market efficiency and stimulate consumer demand over time. Additionally, UFlex is adapting to new environmental regulations by incorporating recycled materials into its packaging solutions, aligning with sustainability trends and regulatory requirements, thereby reinforcing its commitment to sustainable business practices in the competitive packaging industry.