UPL (UPL) Q1 26/27 earnings summary

Executive summary

• Achieved seventh consecutive quarter of revenue and EBITDA growth, with Q1 FY27 delivering the strongest Q1 net income in three years despite macroeconomic and geopolitical challenges.

• Margin expansion continued, driven by improved business quality, favorable pricing actions, and disciplined execution across key geographies.

• Maintained resilience and broad-based growth across all business platforms and geographies, overcoming weather, supply chain, and input cost headwinds; specialty chemicals and Advanta segments showed robust performance.

• Consolidated revenue for Q1 FY27 was ₹10,181 crore, up 10.5% year-over-year but down 44.5% sequentially from Q4 FY26.

• Net loss for the quarter was ₹73 crore, compared to a net profit of ₹1,294 crore in Q4 FY26 and a net loss of ₹176 crore in Q1 FY26.

Financial highlights

• Q1 FY27 revenue rose 10% year-over-year to INR 10,181 crore, driven by 3% positive pricing and favorable exchange, offset by 3% volume decline.

• EBITDA for Q1 FY27 was ₹1,500 crore, up 15% year-over-year, with margin improving 60 bps to 14.7%.

• Contribution margin expanded to 45.2%, with contribution up 15% to INR 4,607 crore.

• PATMI turned positive at INR 10 crore (from -INR 88 crore YoY), but reported net loss of ₹73 crore due to margin pressures and restructuring costs.

• Net debt-to-EBITDA improved to 2.4x; net debt-to-equity stable at 0.6x; net debt increased to ₹23,649 crore due to seasonal working capital.

Outlook and guidance

• Full-year FY27 guidance: revenue growth of 7%-11%, EBITDA growth of 10%-14%.

• Expect strong Q2 led by volume recovery, new product launches, and continued operational excellence.

• Strategic priorities include margin improvement, PATMI growth, deleveraging, and enhanced returns.

• The company is undergoing major restructuring, including amalgamation and demerger of key business units, with regulatory approvals in progress.

• Cautious outlook for agrochemicals due to ongoing geopolitical and weather uncertainties, but confident in resilient core and innovation.