Budget 2025 boost, strong Q3 lift UPL share price 6% to 52-week high

UPL share price rose after a rating upgrade by Investec, which revised the stock's outlook to 'Buy' from 'Sell', alongside a strong performance in Q3FY25 and announcements from the 2025 Budget

UPL share price: Chemicals company UPL shares were buzzing in trade, as the stock rallied up to 5.32 per cent to hit a fresh 52-week high of Rs 636.45 per share on Monday, February 3, 2025. 

 

The uptick in UPL's share price followed a rating upgrade by brokerage firm Investec, which revised the stock’s outlook to ‘Buy’ from ‘Sell’, alongside a strong performance in the December quarter of FY25 (Q3FY25) and announcements from the 2025 Budget.

 

Investec reportedly raised the target price for UPL to Rs 700, up from Rs 450 previously, indicating an upside potential of 15.83 per cent from the February 1 closing price of Rs 604.30. The brokerage is confident that UPL will achieve its guidance, driven by a recovery in global macro demand and a strong focus on operational efficiency, the report said.

 

 

In addition to the upgrade, UPL reported a quarterly profit in Q3FY25 after two consecutive quarters of losses, driven by a rise in demand for agrochemical products due to an above-average monsoon and a reduction in costs.

 

The company posted a consolidated net profit of Rs 828 crore in Q3FY25, from a loss of Rs 1,217 crore in the same period a year earlier.

 

UPL’s revenue from operations climbed 10.3 per cent year-on-year to Rs 10,907 crore in Q3FY25, compared to Rs 9,887 crore in Q3FY24. UPL said the growth was driven by a 9 per cent increase in volumes, a 5 per cent rise in prices, and a 4 per cent negative impact from foreign exchange fluctuations, particularly in Brazil.

 

At the operating level, UPL’s Ebitda surged 420 per cent Y-o-Y to Rs 2,163 crore, compared to Rs 416 crore in Q3FY24. The Ebitda margin also expanded 1,560 basis points to 19.8 per cent in Q3FY25, from 4.2 per cent in the same quarter last year, the company stated.

 

“We are seeing strong bounce back versus last year, with normalization of business, and recovery of volumes and prices. This has helped in regaining our contribution margins back to our previous higher levels. Through strong focus, the team has done a commendable job in bringing down the working capital, resulting in a significant reduction of our net debt versus September, 2024. With this strong performance, we are confident of delivering our Ebitda and free cash flow guidance for the full year,” said Jai Shroff, chairman and group CEO.

 

Push from Budget 2025 announcements

 

In her Budget speech on February 1, 2025, Finance Minister Nirmala Sitharaman unveiled the ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ as part of the Government’s ongoing effort to boost agricultural productivity. 

 

Building on the success of the Aspirational Districts Programme, this initiative will be implemented in partnership with states across 100 districts with low productivity, moderate crop intensity, and below-average credit parameters.

 

The programme’s key objectives include boosting agricultural productivity, promoting crop diversification and sustainable farming practices, improving post-harvest storage at the panchayat and block levels, enhancing irrigation facilities, and increasing access to both long-term and short-term credit. It is expected to benefit 1.7 crore farmers, FM highlighted.

 

About UPL

 

UPL  is a global provider of sustainable agriculture products and solutions, with annual revenue exceeding $5 bn. As one of the largest agriculture solutions companies worldwide, UPL robust portfolio consists of biologicals and traditional crop protection solutions with more than 15,000 registrations. 

 

The company is present in more than 130 countries, represented by more than 12,000 colleagues globally. 

 

The market capitalisation of UPL is Rs 53,707.04 crore, according to BSE. The company falls under the BSE 200 category. 

 

At 1:20 PM, UPL share price was trading 3.60 per cent higher at Rs 626.05. In comparison, BSE Sensex was trading 0.32 per cent lower at 77,254.53 levels.