Uflex Limited — Call Transcript 2025

Nov 20, 2025

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UFLEX/SEC/2025/

November 20, 2025

The National Stock Exchange of India Limited Exchange Plaza, 5th Floor Plot No.C/l, G-Block Bandra-Kurla Complex Bandra (E), Mumbai – 400051 Scrip Code : UFLEX

The BSE Limited Corporate Relationships Department 1st Floor, New Trading Ring, Rotunda Building, P J Towers, Dalal Street, Fort, Mumbai – 400 001 Scrip Code : 500148

Subject : Transcript of the earnings conference call conducted on November 14, 2025

Dear Sir(s),

Pursuant to the Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the transcript of the earnings conference call conducted on Friday, November 14, 2025.

Request you to take on record.

Thanking you,

Yours faithfully, For UFLEX LIMITED

RITESH Digitally signed by RITESH CHAUDHRY CHAUDHRY Date: 2025.11.20 20:46:41 +05'30' (Ritesh Chaudhry) Sr. Vice President - Secretarial & Company Secretary

Encl: As above

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UFLEX LIMITED

Q2 and H1 FY26 EARNINGS CONFERENCE CALL: November 14, 2025, 04:00 P.M. IST

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– MANAGEMENT: MR. RAJESH BHATIA GROUP PRESIDENT & CHIEF FINANCIAL OFFICER, UFLEX LIMITED – MR. SURAJIT PAL VICE PRESIDENT, HEAD OF INVESTOR RELATIONS, UFLEX LIMITED

– HOST: MR. ASHWATH RAJAN ARIHANT CAPITAL MARKETS LIMITED

ACTIVE Q&A PARTICIPANTS:

• Aman Sonthalia - AK Securities

• Prashant Rishi - Cascade Capital

• Kaushik Poddar - KB Capital Markets

• Saket Kapoor - Kapoor & Company

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Q2 and H1 FY26 EARNINGS CONFERENCE CALL: November 14, 2025

Moderator: Ladies and gentlemen, good day and welcome to the UFlex Limited Q2 and H1 FY'26 Earnings Conference Call hosted by Arihant Capital Markets Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing ‘*’ then ‘0’ on your touchtone phone.

I now hand the conference over to Mr. Ashwath Rajan from Arihant Capital Markets Ltd. Thank you and over to you. Ashwath Rajan: Thank you. On behalf of Arihant Capital, I welcome you all to Q2 and H1 FY'26 Earnings Conference call of UFlex Limited. Hope you all are safe and healthy.

From UFlex management team, we have with us Mr. Rajesh Bhatia – Group President and CFO; Mr. Surajit Pal – Vice President and Head of IR.

I now hand over the floor to the management for their opening remarks and then we would have the Q&A session. Without further ado, over to you, sir.

Surajit Pal: Thank you, Ashwath. Good afternoon, ladies and gentlemen. Thank you for joining us today for Q2 and H1 FY'26 earnings conference call of UFlex Limited.

Let me draw your attention to the fact that on this call, our discussion will include certain forward-looking statements, which are predictions, projections or other estimates about future events. These estimates reflect management's current expectations about the future performance of the company. Please note that these estimates involve several risks and uncertainties that could cause our actual results to differ materially from what is expressed or implied.

I would now request Mr. Rajesh Bhatia – Group President and CFO for his opening remarks, following which we will open the forum for question-and-answer session. Over to you, sir.

Rajesh Bhatia: Thank you, Surajit and welcome to all the participants for the Q2 earnings call of UFlex.

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At the outset, I would like to say that it's been a decent quarter and H1, considering that there are many headwinds during the H1 period, like tariff, GST transition, extended monsoon, but overall, while the quarter has been flat in terms of revenue and EBITDA, on an H1 basis, the sales are up by 3%, the EBITDA is up 4% and obviously the PAT is up much higher by about 150%, H1 PAT, largely because of the impact of the currency translation losses we had in the YOY period. In terms of the performance, we have achieved the highest ever volumes again at our aseptic packaging units during the H1 period and we have a 5.5% growth on a YOY basis. But as we said earlier, there is a limitation currently, which got over in October, whereby we commissioned our extended capacity to 12 billion packs a year, which will start yielding results as the season sets in from January onwards. We will definitely have better volumes in the last quarter of FY'26 and going forward in FY'27 in the aseptic packaging business.

We have also announced a new packaging film line at Dharwad, which was a part of our commitment when we had gone and set up the first line in Dharwad, and our agreement with the state government whereby we were entitled to certain tax concessions for a certain level of investment, which we have to fulfill, so we are adding another line over there. This time, this is a BOPP facility with a capacity of 54,000 tons a year.

We are also quite advanced in terms of commissioning of our three other projects. One is PET recycling in Noida. While I am on the subject, I'd like to state that, since not much capacity has come up, as per the latest guidelines, the government has said that whatever is the deficiency in this year, the industry will have to make it up in the next three years. So, they'll have to maintain the prescribed levels in those respective years. So, for FY'26, they've been given an exemption that whatever your liability was in FY'26, with respect to using the recycled content, So, that has been deferred for the next three years and for subsequent years you still have to maintain. I think this was necessitated because, the capacity addition, what the industry actually requires to comply with the guidelines is still not on the ground. That's why the government took that view and sort of extended the timelines for such compliance. So, they've not moved by a year. They've only said that the compliance remains, but you can do it in the next year. For the next year, apart from that year's requirements, you will

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also have to comply with the past deficiency. In FY'27 and FY'28, I think, everybody will have to comply with the deficiency, what they couldn't do in FY'26. Egypt aseptic packaging will probably happen towards the end of FY'26 or Q1 of FY'27, and so is the WPP at Mexico. As we have said, the top-line addition with the new investments at an optimum capacity utilization level for the four new projects, which include two of aseptic and one WPP and another PET recycling, is expected to be around Rs. 3,000 odd crores within an EBITDA of about Rs. 500 crores at a decent capacity utilization level.

Another notable thing that has happened in India in Q2 and H1, according to the trend that, India is witnessing much higher level of both BOPET and BOPP imports. Giving you a perspective in H1 FY'26, the BOPET imports in India are up about 120% YOY and BOPP imports are up about 100% over the H1 FY'25. Even the exports from India have come down in Q2 marginally by about 18% and BOPP is also down 22% largely because of fact that BOPP capacity got impacted by the fire at a major player's facility in the western part of the country. That's the industry scenario in India.

In Europe also, we have seen that the exports, which were earlier happening into U.S,

because of the U.S. tariffs, some of the exports have been diverted from China and other Southeast Asia countries to the Europe. That's why our performance in the European territory in terms of production and sales have been affected in Q2. In India also, because of the tariff and 25% additional oil-related tariff, we have been impacted because we export packaging material from India to USA, and we have had an impact of that, which we partially have been able to pass on to the customer. Still passing on the full 50 percent was not possible, so we currently have to bear the burden till the time this duty of 25% on account of oil gets waived, which is likely to happen within this month. That's what our information is. So, I think with rightful tariffs being in place, the GST transition has happened. In the GST transition, what has happened is because we are a B2B player, our customers would not order fresh prints, so they themselves are busy ensuring that their existing stocks are sold and they were not ordering new prints because you have to print the MRPs on the packs, There was a lag impact there, but all those things are now in place. With direct and indirect tax cuts, I think the consumption will definitely get a boost in the quarters to

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come by. I think this temporary transition impact, which hit us in Q2, is not going to be there in H2 or subsequent years.

On the guidance for the rest of FY'26, I think because we had earlier given guidance of 10% revenue increase, we will have to re-look at that. At all probability, it looks like that there'll be a 5% revenue increase for the year as a whole, with an EBITDA of about 1,800 crores to 1,850 crores kind of a range this year. I think this is fairly achievable even based on proportionate H1 sales and EBITDA numbers. Hopefully, with the new capacities coming on stream, because the debt has already more or less been added, and incremental revenue will also give us much higher EBITDA. We will be having that impact in FY'27 and beyond.

So that in a nutshell is the performance for the quarter and the outlook for the H2 and FY'27. I think we are happy to address anybody who has any questions.

Moderator:

Aman Sonthalia:

Thank you very much. Ladies and gentlemen, we will now begin the question-andanswer session. The first question is from the line of Aman Sonthalia from AK Securities.

My question is regarding this liquid packaging. I think this quarter, compared to previous quarter, the utilization level was quite low. In the last quarter, I think our plant has run around 136% and this time it is around 99%. Again, we have increased the capacity by 50%. Are you confident that we will run our plant at 100% utilization with increased capacity?

Rajesh Bhatia:

I have always said that the season for this is from January to, you can say, at best middle of August, so the seasonality does set in. Even in previous years, we have seen for Q1 versus Q2, the volumes were always down because the seasonality sets in. When I say that, for the H1 period, we have done 5.4% higher sales volume, and we produced that much more also, it should be taken in that respect. If you compare Q1 versus Q2, yes, you will see a dip, but that dip is historic, is always there, and is because of the seasonality aspect.

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Aman Sonthalia: Actually, I want to know, that in the off season, whether we can plan something that in that period we can export more and get that extra business instead of running it at lower capacity utilization? Rajesh Bhatia: We always do that, but seasonality also sets in those territories as well. When it's winter for us, some of the territories we have in mind, we are not there today yet, like Europe and all, and North America. Today we have to take care of their seasonality as well as our seasonality, so this is the best that we can achieve under the current dispensation. Aman Sonthalia: How is the margin in the BOPET and BOPP at the moment? I think because of the imports, there is significant drop in the margin. Has that imported quantity already been extinguished, or is it still there and the margins are still down?

Rajesh Bhatia: The margins for BOPET have increased. At the gross level, there is a 20% margin in BOPET in India. I am talking about the base film, not the value added and all that, plain vanilla. In BOPP there is a 30% margin. Aman Sonthalia: How much was it in the last quarter?

Rajesh Bhatia: It was less in the last quarter because imports were happening. The domestic players had no option but to also reduce their prices. That has checked in the imports. In this quarter, from that perspective, it will be better.

Aman Sonthalia: US and China is dumping their capacity in the international market, in the European market and other markets. Since a lot of our capacity is overseas. How are we going to face it and how will our margin be better, because they are dumping all over the world?

Rajesh Bhatia: So, I think that impact we have seen only in the last quarter. Earlier, we were not seeing that huge impact of China or other Southeast Asian countries exporting to Europe. Because of the US tariff things also, that thing would have changed a bit. It will take some time as to what is the clear position that will ultimately emerge out of this as this has been a very, very recent phenomenon only. Our volumes have definitely suffered in Egypt because the Egypt export to Europe have been impacted.

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So, beyond a point, we know that this is temporary. We don't want to get into a price war matching with import. So, there's no point doing that. Aman Sonthalia: Sir, are the margins getting better, or are they less than the previous quarter at the moment? Rajesh Bhatia: At the moment, Europe continues to suffer because of higher imports. Aman Sonthalia: And what about the US and that Mexico market? Rajesh Bhatia: There is no export in the US. Aman Sonthalia: No, our local plant in there? Rajesh Bhatia: Yes, they are doing fine. I think their volumes are not impacted. Rather, Mexico has seen better volumes in this quarter. Aman Sonthalia: Okay. So that is making a reasonable profit. Rajesh Bhatia: Those businesses are okay. Aman Sonthalia: Sir, our three projects, the WPP plant, Asepto of Egypt, and recycling India, so do you think that by March all these three plants will be operational? Rajesh Bhatia: I have some doubts. It will take some more time. Aman Sonthalia: Even the recycling plant? Rajesh Bhatia: The recycling plant will be operational by March. But as I told you, according to the new government guidelines, the brand owners don't have to worry much. Because if there is any deficiency, they can make up for it in the next three years. So, there is no impact in the year.

Aman Sonthalia: So, will our orders in the recycling plant decrease because of that? Rajesh Bhatia: Obviously, because brands will think that if the government has given us three more years, whatever shortfall will be this year, I will see it next year.

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Aman Sonthalia: So, the recycling business will suffer for the next two to three years? Rajesh Bhatia: No, since our capacity was about to come next March, if the impact would have been next year, then there would have been an issue for us. Aman Sonthalia: Will it be okay next year? Rajesh Bhatia: It will be better next year, because you have to fill for it last year shortfall along with that year’s liability. Aman Sonthalia: Okay, that is why I wanted to hear it. Rajesh Bhatia: The prospect will be better next year, because there is no capacity today. If capacity comes online by March, then we go to FY'27. There is no exemption in FY'27 for EPR. They have to fulfill FY'27 in FY'27, and if there is a shortfall of FY'26, they have to fulfill that too. It is possible that they have been given three years, and it is not written that in three years you have to do one-third deficiency for each year. It is possible that they will take more of that deficiency.

Aman Sonthalia: There are a lot of people who recycle bottle to bottle and make chips. But the packaging grade that we recycle and make ‘Asclepius’ brand for flexible packaging grade, are there any other competitors for that? Rajesh Bhatia: There is competition. Ultimately, if you make a chip by using a bottle, and then you make a film from the chip, then there are other players besides us, because if recycling is made mandatory, then everyone will have to do the same. Aman Sonthalia: I think the licenses of food grade are very few. Like, we have got the USFDA. Rajesh Bhatia: It is the evolution stage today. It will take some time for things to settle. Everyone will get it. Someone will get it first, someone will get it later, but the government has to ensure that, if they are putting a stipulation that you have to recycle so much. Otherwise, where will the brand owners recycle it from? If the material is not available, food grade, FSSAI approved. Everyone will get it. Someone will get it first; someone will get it later.

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Aman Sonthalia: The last question is about the debt. The debt has already increased a lot, and then there is a new Rs. 700 crores plant coming up. Is the management planning to reduce the debt ahead? Rajesh Bhatia: Apart from the existing debt, we will require another ~Rs. 950 crores by FY'27 to complete these projects. About Rs. 1,000 crores more additional debt will come up in FY'27. An existing debt of Rs. 1,500 crores will be repaid till March '27.

Aman Sonthalia: So, Rs. 500 crores will be reduced in the loan? Rajesh Bhatia: Rs. 500 crores will be reduced in the balance sheet of FY'27. Aman Sonthalia: Okay, sir. Thank you. Moderator: Thank you. The next question is from the line of Prashant Rishi from Cascade Capital. Please go ahead. Prashant Rishi: Good evening, sir. What is the situation in terms of upcoming capacity in India for both BOPET and BOPP films?

Rajesh Bhatia: In BOPP, some capacities are expected to come in FY'27. I think two plants are coming. For BOPET, in FY'28, I think there is one plant which is coming. Now one of the largest players in industry was impacted by a very unfortunate incident. I think with that capacity now going off the table and being met through higher imports, eventually I think there will be more announcements in that space from the other industry players also who would like to fill up that capacity.

Prashant Rishi: In BOPP, the two plants that are coming, any idea how much would be the total capacity which is coming in? Rajesh Bhatia: 1 lakh ton per annum. Prashant Rishi: Last question. Any visibility on when the heavy import from China, both in India as well as Europe, by when that situation can ease? By when can we see that ease, I mean, to all players for that matter?

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Rajesh Bhatia: In BOPP, because there is a shortage, there will be no relief yet. For PET, because of the current imports and the domestic prices currently what there, everybody who was importing has burnt their hands. I don't think that there will be any further tendency for the people to import because they know that if they import and by the time the imports come, the domestic players would have adjusted their prices. Today also, whatever they imported in the last quarter, they have been sitting on losses on that, because of the domestic prices, the domestic producers had to cut their prices to mitigate that threat. It will stop in BOPET. In BOPP, because there is a shortage, it will continue, till the time the new capacities come in India.

Prashant Rishi: Understood. Thank you so much, sir. Moderator: Thank you. The next question is from the line of Kaushik Poddar from KB Capital Markets. Please go ahead.

Kaushik Poddar: You talked about the challenges last quarter, but if we look at the results of two comparable companies, one from the film side and one from the packaging side, Huhtamaki from the packaging and Cosmo First from the film side, both have shown much better results than what you have done. Can you explain the difference? Why is it so?

Rajesh Bhatia: Let's first compare it with Cosmo. Cosmo has one line of BOPET and the rest, their entire capacity is BOPP films. They were the largest beneficiary of this unfortunate incident at the BOPP side. As I said that BOPP currently the margins are around 30% while the PET margins are about 20%, so obviously, because of the short supply, which is being met by way of imports, they continue to get the maximum benefit because they have a much higher capacity. One of the new facilities came on stream around that period when there was a fire, so, they actually had an existing capacity, and their new capacity also came on stream. They've been the clear beneficiaries of this shortfall position today. We have more of a BOPET capacity than the BOPP capacity. Our BOPP capacity in India is 31,200 tons versus our PET capacity of 110,000 tons in India.

Kaushik Poddar:

The mix is adverse for you compared to Cosmo.

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Rajesh Bhatia: This adversity can at times depends on the situation also. If their PET lines were destroyed, we would have been the major beneficiary of this. With the new management for Huhtamaki in the last one year, they restructured their whole business. They have sort of stopped some of the loss-making units. and they had a very widespread out. So, they've closed some of those facilities and all. So, I think there is a one-off impact which was due to come in this, but if you ask us that, if have they gained on volumes or have they gained on a price parameter better than us? No. They've only done restructuring in terms of closing the unviable unit and compressing their production facilities into a few core manufacturing units only. Kaushik Poddar: The next question is, this year you are projecting 5% revenue growth for the whole year. Can we expect around 10% growth next year at least? Rajesh Bhatia: For next year, I think we can expect 10% growth. It depends on the projects which come on stream and the timing of that is key. I think we still have time to get to that. The more closer we are to commissioning those facilities, I think we will be able to give you more precise guidance. Kaushik Poddar: Can we expect that the margin low we had seen last quarter, from that level, will be better this quarter onwards? Rajesh Bhatia: This quarter, so that is where we have said that the total EBITDA for the whole year, we are now looking at Rs. 1,800 crores to Rs. 1,850 crores range only. Kaushik Poddar: Which was the case last year also? Rajesh Bhatia: Last year was Rs. 1,700 odd crores. This year it may be slightly better. We had earlier said that we are expecting EBITDA in the range of Rs. 2,000 crores to 2,100 odd crores, driven by a 10% volume increase. Looking at the way things are now, I think we have no option but to revise our guidance to a topline of 5% growth and EBITDA of 1,800 crores to 1,850 crores range. Kaushik Poddar: As of now, you are holding back any projection for the next year?

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Rajesh Bhatia: Yes, we will get to that at the end of the next quarter's earnings call. I think that will be more appropriate. We will have more insight as to how the projects are taking shape.

Kaushik Poddar: As of now, all four projects will be operational by first quarter of next year? Rajesh Bhatia: Yes. I think Q1 should definitely see all the projects getting commissioned. Out of four, one is already commissioned, the India aseptic facility, so, now we have three remaining. For recycling, I think surely it will get commissioned by March. The other two, WPP and aseptic in Egypt, may go to Q1 FY'27. Kaushik Poddar: Okay. And on the recycling front, do you expect good capacity utilization from next year onwards? Because your plant is coming anyway in March next year?

Rajesh Bhatia: Yes, definitely. Kaushik Poddar: Okay, thank you. Moderator: Thank you. The next question is from the line of Saket Kapoor from Kapoor & Company. Please go ahead. Saket Kapoor: Namaskar, sir. And thank you for the opportunity. Sir, first if you could just give some color on how the utilization levels have been for the first half across all the plants across the geographies?

Rajesh Bhatia: So, we have given in the presentation. I think you can have a look. Saket Kapoor: Okay.

Rajesh Bhatia: On a year-on-year basis, we have seen India is better, Dubai is better, Egypt, as I said earlier, is down on a YOY basis. Nigeria on a Q&Q basis is up, but a little bit down on YOY basis. Then we have Poland down, Hungary down, and Mexico is up. On an overall YOY basis, we are minus 6% in production volume in the packaging film business. Saket Kapoor: When we look at the employee cost also and the other cost efficiency measures, which will flow directly to the bottom line, have we structured out any such project

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of cost efficiencies? We are a very large organization across several geographies, so there are several costs which may be rationalized in these times when the going is tough. Any project on which we are working wherein we are looking to lower the cost or improve efficiency?

Rajesh Bhatia:

Saket Kapoor:

Rajesh Bhatia:

We keep doing that as an ongoing exercise. There is no doubt in that. There is no specific one-off task that we take to sort of do that. We are pretty well aware of what are the manpower costs. At times there are manpower, even if the project is delayed in commissioning and you've hired the people based on a particular target of commissioning, but now you have to hold on to them. You can't say if my project is delayed by 3 to 6 months, I will ask the people to go and again hire them. That's not going to happen. We are pretty much aware of where we can save costs and that's an ongoing exercise that we undertake. There is always more focus on how to increase the topline, how to improve the margins, which in any business are the largest needle movers, as compared to cutting some of the costs here and there and demotivating the whole organization. I've seen in many organizations, people try to cut costs in travel, in this and all that. I think if we focus on the right energy in a growing business, you will ultimately feel better off. Yes, there were headwinds, which we all know during this first half of the year. I think with all of them now behind us, we will see better. If we all believe that, in India with what the government has recently done, there'll be a consumption boost, so, we as the packaging industry will have a major share in that growth as well.

Secondly, on the duty protection part, since we are seeing a lot of dumping from various geographies into the country, you mentioned about BOPP as well as BOPET, BOPET is also significant quantity in percentage terms. So, are we looking for any duty protection of ADD or we are moving to the association on the same or what is the current risks that we are taking?

None of the businesses are impacted in such a way that they are bleeding. I think the government looks at such kind of request only when the industry is down in dumps. It's not. So, I think there is, hopefully that time should not come. But currently, I don't think there's anything that can happen. Otherwise, recently you would have seen last few days, the government has taken a lot of polymer items from a QCO. There is no

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more BIS required for import of those items into the Company. So, that's more a relief to China being given. And that impacts large refiners and all that where POY, PSF, all of those businesses which were protected because of BIS norms compliance, may see a higher level of imports because that QCO order has been withdrawn across a very large gamut of the items.

Saket Kapoor: Does that in any way affect the packaging industry or the film industry also?

Rajesh Bhatia: It will be better for us if the raw material is cheaper. Saket Kapoor: Okay, I am not aware of that. What is this pertaining to? Is this pertaining to the raw material part, if you can explain for the benefit?

Rajesh Bhatia: There are a lot of polymers like POY, PSF, then even your PTA, MEG for which you had to have BIS compliance certification. They have all been taken off the list, which means that from here on, there is no BIS certification required when you import those items. This has not been done only for China. This is done for all the countries, so, there will be increased competition at least in the polymer industry from imports.

Saket Kapoor: Last two points. About this new BOPP plant, I think you were mentioning about that we had some obligation to set up this plant. What are the exact metrics for the same? I think it's Rs. 750 crores project that we are undergoing. What would be the timeline for the same?

Rajesh Bhatia: It will come in FY'28 in Dharwad only. There are some benefits being given under the state policy when you meet a certain investment criterion. We will get those benefits for this facility.

Saket Kapoor: And again, the demand metrics work for us to add an existing line. We do not have a larger proportion of BOPP. That is also correct understanding?

Rajesh Bhatia: Probably, there is only one line for BOPP in South India. BOPP in South India was supplied more from West India, and the large capacity in West India has been impacted because of the fire. Now, how and when will that capacity come back online, will it be replenished, and with all those question marks around, I think the

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other industry players may, based on their business prudence, take investment decisions.

Saket Kapoor:

Rajesh Bhatia:

Saket Kapoor:

Rajesh Bhatia:

Thank you, for all the elaborate answers. The only point for us or investors is that debt number. Taking debt also into account, any progressive way by which do we have anything in the consideration where we can lower the debt faster or we will follow that, I think, some 2.5 debt-to-EBITDA, the number you have given earlier. That is the path we will follow, going ahead?

I definitely don’t feel that 2.5x is an achievable number, that will have to predicated upon. As I said by FY'27, if there are no further investment proposals, the debt gets down by Rs. 500 crores from the current level of the debt, which is a net debt of Rs. 7,750 crores. If you take that in the context of the additional EBITDA that we can make from this. If we have an EBITDA of Rs. 2,500 crores to Rs. 2,600 crores and the debt is 7,300 odd crores divided by 2,600 crores, then we are looking at a 2.8x. Now, as you do the business and as the opportunities come, there may be more investments and decisions in the future as well. Based on the current metrics, I think we can look at around close to three numbers when the EBITDA from these new investments also kicks in.

Just to take the industry prospect, this is the nature of doing film business that we need to carry this amount of debt along and growth is only possible from the debtoriented way. That is how globally also the film manufacturers do business because in other players we see that the debt numbers are not exactly that high. Just to understand, is our structure such that we will have to stay in perpetual debt if we want to grow?

No, we keep trying something towards doing equity also. If that happens, then there may be other plans around that if that money also gets raised. You know that we were doing a listing three years ago. Even now, we are in regular touch with our bankers in the US. Even now, for the public markets, they are not giving us confidence. Also, because when you were working on those numbers, your EBITDA in your international business was at the highest level in those years. Now, thereafter, the business performance has suffered because of multiple reasons in the global part of the balance sheet, be it the devaluation of Nigeria. The fact of the matter is at a

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PAT level those businesses are, because those businesses are only packaging film business, what we were taking to the market. At that time, their profitability, their multiples, everything was different. Today, they are different, but we will do it at an opportune time. There will be opportunities in the next couple of years. That will be a good opportunity to have cash on the balance sheet and use that cash to do further investments rather than take further debt on to the balance sheet.

Saket Kapoor: For the standalone level, taking into account, although we have not seen any fresh offering from the film segment, though there are a lot of fundraising exercises happening across the country, the IPO market, we follow on public market, all are at lifetime high. Does it warrant any merit for us to go for equity raising or at the Company level here, projecting of what we are projecting in terms of the profitability graph two years down the line? And does film industry command?

Rajesh Bhatia: At the Company level, I don't think that's going to happen, given the current shareholding level of the promoter family. At a subsidiary level, this may be a possibility. I can only say, up to this.

Saket Kapoor: Even that is a distant possibility. It is not going to happen soon that you have already alluded to.

Saket Kapoor: Correct, sir. Hope for better times, next time when we speak.

Rajesh Bhatia: Thanks.

Saket Kapoor: Thank you again, sir, for the detailed presentation and all the requirements for investor education, that awareness part is very well conducted. So, thanks to both Surajit sir and Manoj Pandey ji and Bhatia ji for taking care of your investors in this aspect at least.

Rajesh Bhatia: Thank you.

Saket Kapoor: Thank you, sir. Thank you.

Moderator: Thank you. The next question is from the line of Aman Sonthalia from AK Securities. Please go ahead.

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Q2 and H1 FY26 EARNINGS CONFERENCE CALL: November 14, 2025

Aman Sonthalia:

Rajesh Bhatia:

Actually, there are a lot of new capacities that are coming in BOPP film. Again, we are setting up a BOPP film by 2028 and as per my understanding that lots of capacity is coming. By the time our capacity comes, there are fair chances that there will be very high overcapacity in the market. Whether it is viable to set up a plant?

You believe that there is a huge capacity gap occurred in India, so, obviously, people will try to fill up that capacity. Now, who should do it first and who should do it later? The point is that we are very efficient in setting up plants, so, it is possible that we do it first or someone else should do it first, so, there is a gap of three months. Yes, I can say that it is not only us, it is the other people also who are seeing this opportunity and will put up the capacities, but growth is also happening. You will have to fulfill the growth. I know what you are saying, but can you always time them? If there is some business where you have to stay relevant, you don't have to make your market share drop. You will have to look at that, and you can't time the market. See, whenever you time, when is the best time to invest in an industry, when the returns are high. We have seen in COVID times, there were a lot of returns in BOPET, everyone invested and look where we are now. In FY'24 where we were, after that it got better in FY'25 and in FY'26. These cycles will keep coming in an industry, you

can't time it at all. Like in the stock market, they tell you to do SIP so that you are safe from fluctuations, so it depends on what capacity utilization level is going on in the industry. Unfortunately, what happened in BOPET, after the lows in '15-'16, the capacity utilization across industry level kept increasing and people didn't announce the plants when the capacity utilization levels across the industry had even improved to above 80%. After that, COVID came, because the utilization levels were already high, people made extraordinary profits those couple of years. After that, with the money already earned, everybody came to install new capacities. I think the SIP situation is the same in our business as well. If you want to remain relevant and retain your market share, you don't have to wait for the market to be good so that you can invest. Rather, I always feel that you should invest in the market when there is no one else investing in your industry and when the cycle changes, you will have the gains. We had the gains. The plants we set up, whether in Nigeria, Hungary, or Poland, had spot-on timing because COVID struck suddenly, and there was a sudden gap between demand and supply due to pandemic-led disruptions in the supply chain. We immediately got profits in the first two years, but we had not thought that we would

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Q2 and H1 FY26 EARNINGS CONFERENCE CALL: November 14, 2025

get such a head start; fortunately, that happened. So, you do not have to think too much about it continuously. In the line of business where you are, you have to remain relevant, and you have to protect your market share. Aman Sonthalia: How long do you expect BOPET overcapacity to end? Rajesh Bhatia: You know this better than me. You educate me. Another two years, I think. Aman Sonthalia: It will take another two years. Sir, can't we restructure the loan? Rajesh Bhatia: I am guided by you on this because you have more insight. Aman Sonthalia: Can we restructure our loan to reduce our rate of interest? Rajesh Bhatia: The rate of interest will automatically reduce what else. It is a floating rate of interest. It will automatically reduce, whether it is of the dollar or of India. Aman Sonthalia: Okay, sir. Thank you. Moderator: Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to management for closing comments. Surajit Pal: Thank you for joining us today. We appreciate your time, questions and continued support. The transcript of this call will be made available shortly on our website at www.uflexltd.com . We value this platform as it enables us to engage meaningfully with our investors and stakeholders and look forward to keeping you updated on our progress in the coming quarters. Wishing you all those present here. Thank you. Rajesh Bhatia: Thank you. Moderator: Thank you. On behalf of Arihant Capital Markets Limited that concludes this conference. Thanks for joining us and you may now disconnect the line.

(This document has been edited for readability purpose)

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Q2 and H1 FY26 EARNINGS CONFERENCE CALL: November 14, 2025

Note: This document has been translated from Hindi to English wherever Hindi was used during the call, to

assist non-Hindi-speaking readers. For the exact text, please refer to the Earnings Conference Call - Webcast.

Contact information:

Mr. Surajit Pal, Vice President, Head of Investor Relations

Mr. Manoj Pandey, Manager, Investor Relations

Email: investorrelations@uflexltd.com

Corporate Address:

A - 107 - 108, Sector - IV, Noida - 201301 (U.P.), India

Phone No.: +91 120 4012345 | Fax No.: +91 120 2556040

Corporate ID: L74899DL1988PLC032166

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