Management, however, maintained its outlook for another year of profitable growth, signalling confidence in underlying demand and execution.
The agrochemicals major reported revenue of ₹10,181 crore, marginally ahead of the CNBC-TV18 poll estimate of ₹10,151 crore, while EBITDA stood at ₹1,500 crore, broadly in line with expectations of ₹1,491 crore. EBITDA margin came in at 14.7%.
Net profit stood at ₹10 crore, compared with a loss of ₹88 crore in the corresponding quarter last year. Revenue increased 10.5% year-on-year from ₹9,216 crore, while EBITDA grew 9% to ₹1,500 crore. Profitability was partly supported by a foreign exchange gain of around ₹50 crore during the quarter.
The company described the June quarter as its seventh consecutive quarter of revenue and EBITDA growth, while noting that it delivered its strongest first-quarter net profit in three years. However, the underlying operating performance presented a more balanced picture.
Revenue growth met the lower end of the company’s earlier guidance range of 10-14%, while EBITDA growth fell short of its 14-18% target. Overall volumes declined 3%, though this was broadly in line with market expectations and reflected the seasonal nature of the quarter.
Growth remained broad-based across businesses. UPL Corp expanded 7%, Advanta grew 26%, while SUPERFORM posted 14% growth. Geographically, India and the Americas led performance, supported by other international markets. Contribution margins improved by 180 basis points, aided by pricing actions, better capacity utilisation and a favourable product mix.
Chairman and Group CEO Jai Shroff said structural demand for crop protection, seeds and bio-solutions remains intact despite macroeconomic uncertainty, allowing the company to maintain momentum. He also highlighted plans to unlock shareholder value through a proposed global crop protection platform and the continued development of its seeds and post-harvest businesses.
Group CFO Bikash Prasad said disciplined execution and profitable growth continued to support the company’s financial profile. Net debt stood at ₹23,649 crore at the end of June, compared with ₹15,325 crore in March and ₹21,371 crore a year earlier, reflecting seasonal working-capital requirements. CARE Edge recently upgraded UPL’s long-term credit rating to CARE AA+ (Stable).
Looking ahead, UPL maintained its FY27 guidance of 7-11% revenue growth and 10-14% EBITDA growth, signalling confidence in demand conditions and execution despite a softer start on profitability.
Shares of UPL closed 2.8% higher at ₹621.45 on the National Stock Exchange following the earnings announcement.
