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Business Standard
7 days ago
- Business
- Business Standard
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).
Business Upturn
01-08-2025
- Business
- Business Upturn
UPL Maintains FY26 Guidance After Strong Q1 EBITDA Growth, Narrowed Loss
By Aditya Bhagchandani Published on August 1, 2025, 14:44 IST UPL Limited reaffirmed its FY26 revenue and EBITDA growth guidance after reporting a sharp improvement in operating performance and a significantly narrowed net loss in Q1FY26. The company posted a consolidated net loss of ₹880 million, a considerable improvement from ₹3.84 billion in the year-ago period. Revenue remained largely flat year-on-year at ₹9,216 crore versus ₹9,067 crore, but improved cost management, better product mix, and enhanced operational efficiency lifted margins. EBITDA surged 26.8% to ₹1,396 crore, with margins expanding 301 basis points to 15.15%, driven by a 390-bps rise in contribution margins. This was attributed to higher capacity utilisation, favourable pricing, and a reduction in input costs. Among regions, India led with 21% revenue growth, while North America and Europe both grew 8%. Latin America and Rest of the World reported a 10% decline. Platform-wise, Advanta grew 20% and UPL SAS 13%. The company also reported strong improvements in balance sheet health. Net working capital days dropped to 86 from 121, while net debt declined ₹6,129 crore sequentially to ₹21,371 crore following a ₹3,409 crore redemption of perpetual bonds in May. The ongoing rights issue is expected to conclude by the end of September. Looking ahead, UPL maintained its FY26 guidance of 4–8% revenue growth and 10–14% EBITDA growth, highlighting sustained momentum in crop protection, organic-led growth at Advanta, and margin improvement in its SUPERFORM SSC platform. The management reiterated its long-term focus on value unlocking through restructuring, strategic investments, and disciplined financial execution. Disclaimer: This article is for informational purposes only and does not constitute investment advice. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Business Upturn
06-06-2025
- Business
- Business Upturn
UPL's Advanta Brazil to sell Serra Bonita assets for $125 million
Advanta Comércio de Sementes Ltda. ('Advanta Brazil'), a leading global seed company and part of the UPL Group, has announced the sale of all assets of its Brazilian associate company, Serra Bonita Sementes S.A. ('Serra Bonita'), for a total consideration of USD 125 million, subject to closing adjustments. Advanta holds a 33% stake in Serra Bonita. This strategic transaction highlights UPL's focus on optimizing its asset portfolio and unlocking shareholder value. The proceeds from the sale will be received by Serra Bonita and are expected to be fully distributed to its shareholders in the coming months. The sale process will conclude with the legal winding-up of Serra Bonita. Advanta, as part of UPL Group, specializes in the research, development, production, and commercialization of high-performance seeds, with an emphasis on climate-smart crops designed to tackle global climate variability. The company's strengthened collaboration with the Roquetto Group underlines its commitment to sustainable innovation and the promotion of regenerative agriculture practices throughout Brazil. UPL also extended its gratitude to the management, employees, and shareholders of Serra Bonita for their valuable partnership and contributions over the years, reaffirming its dedication to continued shared growth and enhanced strategic alignment. Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
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Business Standard
12-05-2025
- Business
- Business Standard
UPL reports Q4 results: Net profit of ₹1,079 cr on higher revenue
UPL Ltd on Monday reported a consolidated net profit of Rs 1,079 crore in the fourth quarter of FY25, supported by higher revenue. UPL Ltd on Monday reported a consolidated net profit of Rs 1,079 crore in the fourth quarter of FY25, supported by higher revenue. The company had posted a loss of Rs 80 crore a year earlier. Its total income rose 10.6 per cent to Rs 15,573 crore in the January-March quarter from Rs 14,078 crore in the year-ago period, the agrochemicals major said in a regulatory filing. For the full financial year 2024-25, UPL posted a consolidated net profit of Rs 820 crore compared to a net loss of Rs 1,878 crore in the preceding fiscal. The company's annual total income increased to Rs 46,637 crore from Rs 43,098 crore. "The significant improvement in profitability and operational efficiency, alongside consistent revenue growth, strong operating free cash flows and strategic fund-raising initiatives resulted in our net debt reduction by around USD 1 billion," UPL Chairman and Group CEO Jai Shroff said. The company reduced its net debt to Rs 13,860 crore as of March 31 from Rs 22,170 crore a year ago on higher operating free cash flows and Rs 470 crore gross proceeds from a rights issue and Advanta stake sale. Its net working capital days improved to 53 days in FY25 from 86 days in the previous fiscal due to better inventory optimisation and tighter credit management, the company said. UPL announced a dividend of Rs 6 per equity share. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
