UPL (UPL) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 saw 2% revenue growth year-over-year, double-digit EBITDA growth, and improved contribution margin, despite macroeconomic headwinds in Brazil and Latin America.

• Strong growth in India crop protection (+13%) and Advanta seeds (+20%), while global crop protection declined 3% due to Brazil seasonality and pricing pressure.

• Operational efficiency, improved product mix, and lower input costs drove margin expansion; net debt and working capital reduced significantly year-over-year.

• The Board approved unaudited consolidated and standalone results, with auditors expressing an unmodified review conclusion.

• The quarter saw a consolidated net loss, with significant non-cash and exceptional items impacting results.

Financial highlights

• Revenue reached ₹9,216 crore, up 2% year-over-year; EBITDA at ₹1,303 crore, up 14% YoY, margin improved by 150 bps.

• Contribution margin rose 12% to ₹4,001 crore, margin over 43% (+390 bps YoY); net working capital days reduced from 121 to 86.

• Net loss for the quarter was ₹176 crore, compared to a loss of ₹528 crore last year; PATMI improved by ~₹300 crore to -₹88 crore.

• Net debt at ₹21,371 crore (US$2,492 million), down ₹6,129 crore YoY; net debt to EBITDA improved from 5.4x to 2.6x.

• Finance costs for the quarter were ₹1,007 crore, including ₹271 crore net exchange difference on foreign currency loans.

Outlook and guidance

• FY26 guidance maintained: 4–8% revenue growth and 10–14% EBITDA growth over last year, with margin accretion expected in H2.

• Growth weighted toward H2, with new product launches expected to contribute $130 million in revenue.

• No changes in the use of Rights Issue proceeds; pending utilization is kept in a separate bank account.

• Focus remains on core segments, with major restructuring and capital actions completed.

• Crop protection, Advanta, and SUPERFORM platforms expected to drive growth and margin expansion.