UPL jumps after Q1 results signal margin recovery

UPL surged 7.08% to Rs 711.80 after the agrochemical giant reported a notable recovery in margins for the first quarter of FY26, even as revenue growth remained modest.

Consolidated revenue for the quarter stood at Rs 9,216 crore, up 2% from Rs 9,067 crore a year ago. The topline was supported by improved pricing and favourable forex. The company saw robust growth in India (+21%) supported by North America and Europe (+8% each), offset by Latin America and Rest of World (-10% each).

Contribution margin jumped by 390 basis points to 43.4%, while EBITDA grew 14% to Rs 1,303 crore. This pushed the EBITDA margin up by 150 basis points to 14.1%, buoyed by a better product mix, higher capacity utilisation, and lower input costs.

Despite continued losses, profitability showed strong signs of recovery. Reported PATMI (Profit After Tax and Minority Interest) narrowed to Rs 88 crore in Q1FY26, from a loss of Rs 384 crore in the same quarter last year, an improvement of nearly Rs 300 crore.

The company reaffirmed its full-year guidance, projecting revenue growth between 4% and 8%, and EBITDA growth in the range of 10% to 14% for FY26.

On the balance sheet front, UPL continued its deleveraging drive. Net working capital days reduced to 86 (from 121 days last year), and net debt was trimmed by Rs 6,129 crore to Rs 21,371 crore. The company also redeemed $400 million (Rs 3,409 crore) worth of perpetual bonds in May 2025.

Strong double-digit volume and pricing growth in subsidiaries UPL SAS (+13%) and Advanta (+20%) added to the platform strength. SUPERFORM registered a 9% growth, while UPL Corp saw a 3% decline, mainly due to softer volumes in Brazil.

Jai Shroff, chairman & group CEO, UPL said, "We are pleased to report a strong start to FY26, reflecting the strength of our portfolio. All the platforms have been able to improve margins and cash generation. The remarkable resilience demonstrated by all our platforms, reaffirms that UPL is on the path of sustainable value creation. In view of this, we continue to see the opportunities of creating value for our shareholders. While the business platforms continue to attract investments from leading global investors, we remain committed to unlocking value across all the platforms through restructuring, receiving strategic investments, potential liquidity events which also helps to accomplish deleveraging, and we will soon engage advisors to achieve the same."

Bikash Prasad, Group CFO, UPL, added, "We are pleased to report a robust financial performance in Q1FY26, underpinned by improved operational efficiency, focus on bottom line and prudent financial management. Effective capital management, reduction in net debt and improved gearing ratios reflect our continued focus on balance sheet strength and long-term sustainable value creation. Our recent outlook upgrade by two global ratings agencies is an endorsement of our financial resilience, strategic clarity, and commitment to sustainable growth, reflecting our endeavour in enhancing long-term stakeholder confidence."

UPL is a global provider of sustainable agricultural products and solutions that cover the entire agrifood value chain. It is one of the largest agriculture companies worldwide, serving growers in more than 140 countries. UPL comprises of four pure-play platforms that include UPL Corporation (UPL Corp); UPL Sustainable Agri Solutions (UPL SAS); Advanta Enterprises; and Superform Chemistries (formerly known as UPL Speciality Chemicals).

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