💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment, Printing and Packaging, which grew 25.7% YoY, increasing from INR 181.02 Cr in FY 2023-24 to INR 227.54 Cr in FY 2024-25.

Geographic Revenue Split

While specific percentage splits are not provided, the company generates revenue from India and exports to Saudi Arabia, Australia, Senegal, and the United States of America.

Profitability Margins

Net Profit Margin for the half-year ended September 30, 2025, was 1.77% (INR 2.12 Cr profit on INR 119.86 Cr revenue), showing a slight decline in profitability compared to the full-year FY 2024-25 performance where Net Profit was INR 2.70 Cr.

EBITDA Margin

EBITDA margin for H1 FY26 stood at approximately 7.07% (INR 8.48 Cr EBITDA calculated from PBT of INR 2.71 Cr plus Finance Costs of INR 3.25 Cr and Depreciation of INR 2.52 Cr).

Capital Expenditure

The company invested INR 4.83 Cr in property, plant, equipment, and intangible assets during the half-year ended September 30, 2025, primarily for capacity expansion.

Credit Rating & Borrowing

Total borrowings increased to INR 35.33 Cr as of September 30, 2025 (comprising INR 31.36 Cr non-current and INR 3.97 Cr current), up from INR 23.05 Cr in March 2025, indicating a 53.2% increase in debt to fund operations and expansion.

⚙️ Operational Drivers

Raw Materials

Flexible packaging substrates including films, resins, and inks, which accounted for INR 79.05 Cr (65.9% of total revenue) in H1 FY26.

Capacity Expansion

The company is currently expanding its offset capacity by adding new plant and machinery at the Timba Plant to meet the rising demand for sustainable packaging.

Raw Material Costs

Raw material costs (Cost of Materials Consumed) stood at INR 79.05 Cr for H1 FY26, representing 67.5% of total expenses, making the company highly sensitive to commodity price fluctuations in polymer and film markets.

Manufacturing Efficiency

The company is focused on consolidating and optimally utilizing its facilities to manage higher demand for sustainable packaging solutions.

📈 Strategic Growth

Expected Growth Rate

25.70%

Growth Strategy

Growth will be achieved through capacity expansion at the Timba Plant, specifically in offset printing, and by increasing market penetration in high-value export markets like the USA and Australia. The company is also pivoting toward sustainable packaging solutions to capture evolving consumer demand.

Products & Services

Flexible packaging materials, printing and packaging solutions for various industries.

Brand Portfolio

UMA

New Products/Services

Sustainable packaging solutions are being prioritized, though specific revenue contribution percentages for new launches are not yet disclosed.

Market Expansion

Targeting expansion in international markets including Saudi Arabia, Australia, Senegal, and the USA.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainable and eco-friendly packaging; UMA is positioning itself by adding capacity for these specific solutions to remain competitive.

Competitive Landscape

Highly fragmented market with significant pressure from both large-scale domestic players and low-cost imports.

Competitive Moat

The company maintains a quality moat through ISO 9001:2015 and ISO 22000:2005 certifications, which are critical for maintaining 'Packaging Professional' status in regulated industries like food and pharma.

Macro Economic Sensitivity

The business is sensitive to industrial growth and consumer spending, as packaging demand is a derivative of FMCG and industrial output.

Consumer Behavior

Shift toward sustainable packaging is the primary consumer trend affecting long-term demand for traditional plastic-based flexible packaging.

Geopolitical Risks

Trade barriers or shipping disruptions to Senegal and Saudi Arabia could impact the export revenue stream.

⚖️ Regulatory & Governance

Industry Regulations

Operations must comply with ISO 22000:2005 food safety management standards, which dictate manufacturing hygiene and material safety for packaging.

Environmental Compliance

The company is committed to sustainability initiatives, though specific ESG compliance costs are not quantified.

Taxation Policy Impact

Current tax expense for H1 FY26 was INR 0.58 Cr, representing an effective tax rate of approximately 21.7% on PBT.

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility and high competition in the single-segment business are key risks that could impact margins by over 2% if not managed through pricing escalations.

Geographic Concentration Risk

While expanding exports, the company remains significantly dependent on the Indian domestic market for the bulk of its INR 227.54 Cr annual turnover.

Technology Obsolescence Risk

The shift from traditional to sustainable packaging materials poses a risk of technology obsolescence for older machinery, necessitating the current capex at the Timba Plant.

Credit & Counterparty Risk

Trade receivables stood at INR 51.59 Cr as of September 30, 2025, representing a significant portion of current assets and indicating potential credit risk if customer payments are delayed.