UPL shares dip 5% despite strong Q4 results: Here's what the brokerages say

UPL reported a revenue of ₹15,573 crore, up 10.61 per cent year-on-year (Y-o-Y) compared to ₹14,078 crore in the year-ago period

UPL share price today: Shares of agrochemical company UPL fell over 5 per cent on Tuesday to hit an intraday low of ₹641.40 after the company reported its March 2025 quarter (Q4 FY25) results. At 12:20 PM, the UPL stock was trading at ₹645.05, down 4.70 per cent from its previous day's close of ₹676.85 on the National Stock Exchange (NSE). In comparison, the benchmark Nifty50 index was trading at 24,731.95, down 192.75 points or 0.77 per cent.   Catch Stock Market Updates Today LIVE

 

UPL Q4 FY25 results update

In Q4 FY25, the agrochemical company reported a revenue of ₹15,573 crore, up 10.61 per cent year-on-year (Y-o-Y) compared to ₹14,078 crore in the year-ago period. The company's earnings before interest, tax, depreciation and amortisation (Ebitda) grew 68 per cent to ₹3,240 crore compared to ₹1,930 crore in the corresponding quarter of the previous fiscal. 

 

  The company reported a net profit of ₹896 crore, significantly higher than ₹40 crore in the year-ago period. UPL's net debt declined by ₹8,320 crore to ₹13,860 crore on the back of a strong operating cash flow of ₹4,450 crore and proceeds from two capital transactions. 

 

The board of directors of the company recommended a final dividend of ₹6 per equity share for FY25. 

 

Brokerage views on UPL: Motilal Oswal Financial Services (MOFSL)

According to analysts at MOFSL, UPL has recorded solid growth in the second half of the reported fiscal (H2 FY25) despite macroeconomic challenges. Building on this momentum, the company is likely to witness further growth, largely in the second half of FY26, while the first half is expected to remain subdued due to geopolitical risks.

 

"This growth will be propelled by healthy volume growth across key regions (North America, Latin America, and the rest of the world), while pricing will remain soft. Further, new product contribution would see a healthy ramp-up, while Advanta Seeds will continue witnessing growth in both existing and new products," MOFSL said in a research note. 

 

The brokerage firm has maintained a 'Neutral' rating on the stock with a target price (TP) of ₹660.  ALSO READ | Where to invest as markets look past trade, India-Pak war, Q4 earnings?

 

Elara Capital on UPL

According to the Elara Capital report, UPL reported better-than-expected March 2025 quarter, driven by 77 per cent Y-o-Y growth in its North American business. Improved inventory management and better collections led to a decline in working capital days to 53 from 86 last year. Going ahead, the company will focus on supply chain efficiencies and maintaining working capital at these levels. 

 

"Expect topline growth to be volume-led. Active ingredient (AI) prices have stabilised at current levels, and operational improvement will drive Ebitda margin," the brokerage said

 

Elara Capital has maintained an 'Accumulate' rating on the stock with a higher TP of ₹749.

 

About UPL

UPL, formerly United Phosphorus Limited, is the fifth largest agrochemical company in the world, offering an integrated portfolio of crop protection solutions & biosolutions. It manufactures and markets agrochemicals, industrial chemicals, chemical intermediates, speciality chemicals and pesticides. The company has a global workforce of 13,000 employees. It has a portfolio of over 14,000 registered products to meet diverse agricultural needs.