Flexible packaging steadies the ship in spite of stormy weather

The Q1 results of flexible packaging firms show a strong sectoral momentum and investment in capacity expansion and sustainability initiatives. Top performers like Mold-Tek Packaging, Jindal Poly Films, and Mamata Machinery benefited from robust demand, operational improvements, and significant growth in profitability and revenues. Companies like UFlex and Huhtamaki are prioritising major investments in new production facilities and recycling infrastructure, signaling that sustainability and compliance with environmental regulations are increasingly central to strategic decisions in the packaging and manufacturing space.

Cosmo First's Q1 FY26 results, showcased strong growth across key financial metrics. The highlight was its EBITDA rose significantly, supported by 19% higher volumes, improved BOPP film margins. As reported in Whatpackaging?, a new BOPP line, operational since June, has increased capacity by 45%, while the Cosmo Sunshield window film line, launched in May, has gained momentum with 50+ distributors. Over the past three years, major investments in BOPP, CPP, and window films have gone live, positioning the company for strong revenue and profit growth. FY26 priorities include leveraging new capacities, expanding specialty films, cutting costs, and scaling all business verticals.

Encode Packaging India posted virtually no activity for the quarter ending June 2025, recording nil net profit and no sales, maintaining a pattern of minimal financial activity as seen in prior quarters, signaling continued operational dormancy.

Mumbai-headquartered EPL increased its revenue by 7.6% to INR 42,133-million and grew its EBITDA by 17.5% to INR 8,396-million. The company’s adjusted net profit also rose significantly, climbing 44.6% to INR 3,626-million. These results led to an improved EPS of INR 11.38 (up 44.4%), while its ROCE improved to 18% (up 335 basis points). The company also reduced its net debt by 24.2% to INR 4,568-million. Operationally, EPL produced over 9-billion tubes, with 33% of them being recyclable and 35% containing post-consumer recycled (PCR) content. 
The company filed nine new patents, including eMetal and NeoSeam, and is expanding into the pet care and OTC pharma sectors. EPL is recognised as a global leader in the production of laminated tubes, serving major international brands in the beauty, cosmetics, and food industries. Its innovative product lines, such as Platina and e-Green, are designed to meet the growing demand for fully recyclable and sustainable packaging solutions. EPL operates seven plants in India across five states, including Vasind and Wada, employing 1,443 permanent staff and 1,337 workers.

Garware Hi-Tech Films has set an ambitious target, aiming for INR 2,500-crore in sales for FY26. The company attributes this growth to robust demand and the upcoming launch of a new Paint Protection Film (PPF) line, a high-margin segment that is gaining significant global traction. Garware’s growth drivers include a strategic premium push in its PPF and window film segments, strong export demand, and operating leverage from an uptick in sales volumes. Backward integration is also helping the company to improve its margins.  As a major player in polyester films, the company holds expertise in a wide range of products for industrial and specialty applications. Its diverse portfolio includes films for solar control, electrical insulation, and various packaging needs. 

Huhtamaki India experienced relatively flat quarterly revenues at INR  5,930-million and a 7% year-over-year decline in EBIT to INR 371-million. However, operational margins improved over the previous quarter thanks to better sales mix and cost optimisations. Dhananjay Salunkhe, managing director while commenting on the earnings report said, “The improvement in margins compared to trailing quarter is driven by better sales mix and operational efficiencies. The Company continues to focus on driving efficiencies across the manufacturing processes to improve upon the profitability.” He also noted that Huhtamaki Strategy 2030 is to be the first choice in sustainable packaging solutions.

Jindal Poly Films delivered a solid quarter in Q1 FY 24-25, with its India Packaging Films segment registering 41% revenue growth (INR 923-crore) and a remarkable 142% surge in EBITDA, which the management attributed to ongoing operational excellence and strategic investments that enabled strong performance despite challenging market conditions.  Headquartered in Uttar Pradesh, the company has a business focus, which includes non-woven fabrics, and continues to expand technologically and geographically. In 2025, as readers of WhatPackaging? magazine will recall, JPFL acquired a 48.84% equity stake in Enerlite Solar Films, thereby strengthening its portfolio in advanced materials.

Kanpur-headquartered manufacturer of flexible intermediate bulk containers (FIBCs) and woven polypropylene packaging solutions, Kanpur Plastipack has witnessed a solid quarterly performance. The industrial packaging specialist reported its standalone total income of INR 182.24 crore, reflecting surging demand across domestic and export markets. Readers of WhatPackaging? magazine will recall the group's acquisition of a 76.19 percent stake in UK-based Valex Ventures which ensures access to Europe’s premium food-grade and UN-certified FIBC markets.

Mamata Machinery posted a breakthrough Q1 performance with total income soaring 37.6% year-over-year to INR 40.16-crore and net profit multiplying by over 1,000%, reflecting impressive revenue and margin growth fueled by strong business expansion and operational effectiveness.

Mold-Tek Packaging reported exceptional Q1 performance with a 22% year-over-year (YoY) revenue growth and a substantial 35% increase in net profits, driven primarily by strong demand from the paint sector and rapid expansion of its pharma packaging segment, which achieved breakeven and 11% sequential growth, alongside healthy growth in the food, FMCG, and lubricants divisions; the company also initiated major capacity expansion projects to further scale its pharma business.

Pakka operates primarily in the paper & pulp and moulded products segments, with a strong focus on sustainable packaging innovations. The company is currently expanding its production facilities and upholding its commitment to eco-friendly solutions. In 2025, it also plans merger activities within its subsidiaries to streamline operations. The leadership transition is expected to drive continued strategic growth. In Q1 2025, the company reported standalone revenue from operations of INR 82.24-crores, which marked a decrease from INR 92.16-crores in Q4 2024 and INR 96.79-crores in Q1 2024. However, its profit before tax improved significantly to INR 6.54-crores, up from INR 12.16-crores the previous quarter and INR 15.88-crores for Q1 2024. Net profit stood at INR 4.86-crores, a prudent performance considering market circumstances. 

Meanwhile Uflex reported consolidated revenue of INR 39,219-million, up 6.4% YoY, driven by higher volumes and improved product mix, especially in India, Europe, and the CIS markets. Normalised EBITDA was nearly flat at INR 4,698-million (margin of 12%), with profit after tax rebounding sharply to INR 580-million from a loss of INR 985-million last year. The packaging business (flexible, aseptic, and holography) outperformed industry growth with 11.7% YoY volume improvement, reflecting successful innovation and client adoption of recycled materials to meet India's new EPR regulations.

UFlex’s India packaging films operations saw significant improvements in capacity utilisation, reaching 80.7%, and a 15.9% YoY increase in production volume. The company continues to invest aggressively in expansion, with USD 56.7-million already spent on its new Mexican facility, and strategic focus on sustainability is evident in the launch of FSSAI-compliant PCR-based films, water-based inks, and biodegradable packaging options. The company announced a new high-capacity packaging facility in Mexico and a major recycling plant in Noida, underscoring its commitment to international market expansion and sustainability through enhanced recycling capabilities and compliance with India’s producer responsibility laws. Segment analysis shows packaging films providing the bulk of revenue (63.2%), with strong contribution also from engineered and value-added products.