Uflex declares Rs.3 dividend for FY26, sets TDS norms

Uflex Limited has recommended a dividend of Rs.3 per equity share for the financial year ended March 31, 2026. The dividend, amounting to 30% of the face value of Rs.10 per share, was approved by the Board of Directors on May 30, 2026. This payout is subject to approval by shareholders at the 37th Annual General Meeting scheduled for July 29, 2026. If approved, the dividend will be paid on or before August 27, 2026.

The company has communicated the tax deduction at source (TDS) implications under the Income Tax Act, 2025. Dividend income is taxable in the hands of shareholders, and the company is required to deduct TDS as applicable. The record date for determining dividend eligibility is June 9, 2026. Shareholders must submit relevant documentation to claim exemptions or lower tax rates by June 26, 2026.

TDS Rates for Resident Shareholders

Resident shareholders are subject to different TDS rates based on their PAN status and income levels. The company has specified the following deduction rates:

Shareholder Category	TDS Rate	Conditions
No TDS	0%	Dividend amount does not exceed ₹10,000, or income is below taxable limit with Form 121 declaration.
Valid PAN	10%	PAN linked to Aadhaar is furnished to the Depository Participant or Company.
Invalid/No PAN	20%	PAN not furnished, invalid, or not updated in the Company's records.
Lower/Nil Rate	As per certificate	Subject to receipt of Lower/Nil Deduction certificate from Income-tax Authorities.

Provisions for Non-Resident Shareholders

Non-resident shareholders may avail benefits under applicable tax treaties. The TDS for non-residents will be deducted at 20%, plus applicable surcharge and health & education cess, or the applicable tax treaty rate, whichever is lower. To claim the treaty rate, shareholders must submit the required documents to the company by the deadline.

Compliance and Deadlines

Shareholders holding shares under multiple accounts with a single PAN should note that the higher tax rate applicable to any one account will apply to the entire holding. The company stated that no claims would be entertained against taxes deducted in accordance with the law. Additionally, if shares are held by a clearing member or broker, the registered shareholder must submit a declaration by June 26, 2026, detailing the beneficial owner for TDS credit.

Forms and documents must be submitted via email to TDSdividend@uflexltd.com . Incomplete submissions or those received after the deadline will not be considered. The company will email TDS certificates to registered email addresses after the dividend payment. Shareholders can also view TDS credits in Form 26AS.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.77%	-3.49%	-2.49%	-10.92%	-33.97%	-12.48%

Uflex Limited reported a strong operational and financial performance in Q4 FY26 and a steady performance in FY26, supported by its integrated business model and global manufacturing footprint. Consolidated revenue for Q4 FY26 increased by 12.8% sequentially and 5.7% YoY to Rs 40,973 million. EBITDA jumped 36.3% QoQ and 31.8% YoY to Rs 6,265 million, with the margin expanding to 15.3%, the highest in the last 14 quarters. Normalized PAT for the quarter increased to Rs 2,026 million. For the full year FY26, consolidated revenue increased 2.1% to Rs 155,130 million, while EBITDA rose 8.1% to Rs 19,836 million, with the margin expanding by 70 basis points to 12.8%. The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Financial Performance

The company’s normalized EBITDA for the period included a Rs 156 million adjustment for foreign currency fluctuations and derivative gains or losses. Consolidated sales volume during Q4 increased 10.3% sequentially to 166,879 MT, while for the full year, it grew 0.4% to 649,789 MT. The packaging business volume grew 5.1% to 151,755 MT in FY26, while packaging films volume declined 1% to 498,034 MT. The finance cost for the fiscal was approximately Rs 777 crore, and depreciation was Rs 787 crore.

Capital Expenditure and Projects

The company incurred a total capital expenditure of Rs 7,070 million during Q4 FY26. Major allocation was directed towards four key projects: the Aseptic packaging facility in Egypt, the WPP bag manufacturing unit in Mexico, the PET and MLP recycling unit in Noida, and a new BOPP packaging films line in Dharwad. The closing capital work in progress was Rs 2,169 crore.

Project	Location	Capacity/Details	Investment Status
Aseptic Packaging	Egypt	12 billion packs per annum	~USD 95.70 million incurred; remaining ~USD 30.30 million to be invested prior to commissioning in H1 FY27
WPP Bags	Mexico	80 million capacity	~USD 52 million incurred; plant undergoing stability testing
Recycling Unit	Noida, India	36,000 MTPA rPET chips, 3,600 MTPA MLP recycling	~₹2,700 million of ₹3,171 million incurred; balance ₹471 million prior to commissioning
BOPP Line	Dharwad, India	54,000 MTPA	~₹785 million of ₹7,154 million incurred; remaining ₹6,369 million to be incurred prior to FY2027–28 commissioning

Capacity Expansion

The company commissioned recycling facilities in Noida with a capacity to recycle nearly 40,000 MTPA of PET and Mixed Flexible Waste in early FY27. A brownfield expansion at the aseptic packaging facility in Sanand, Gujarat, increased capacity from 7 billion to 12 billion packs per annum during FY26. Uflex's total packaging film capacity stands at 636,160 MTPA as of March 31, 2026. The company expects to capitalize approximately Rs 1,900 crore to Rs 2,000 crore of capital work in progress during the current financial year.