UPL (UPL) Q2 24/25 earnings summary

Executive summary

• Q2 FY2025 revenue grew 9% year-over-year to INR 11,090 crores, driven by 16% volume growth despite a 7% price decline and flat FX impact.

• EBITDA for Q2 was INR 1,576 crores, flat year-over-year, with margin at 14.2% due to pricing pressure.

• Net debt reduced by $411 million year-over-year to $3.3 billion, mainly from improved working capital management.

• Adjusted profit after tax for Q2 showed a loss of INR 443 crores, higher than last year, mainly due to non-recognition and reversal of deferred tax assets.

• Strong regional performance in Europe, Brazil, and North America; India saw volume-led growth and margin accretion.

Financial highlights

• H1 FY2025 revenue was INR 20,157 crores, up 5% year-over-year, with 16% volume growth and a 10% price reduction.

• H1 EBITDA was INR 2,721 crores, down 14% year-over-year, with margin at 13.5%.

• Net working capital reduced to INR 14,829 crores (123 days of sales), down from 149 days last year; working capital days decreased by 26 year-over-year.

• Net profit before minority interest for Q2 FY25 was negative at INR 443 crores, compared to INR 189 crores last year.

• Net debt at $3.3 billion as of September 2024, down $411 million year-over-year.

Outlook and guidance

• Revenue growth guidance for FY2025 maintained at 4–8%.

• EBITDA expected to grow by 50% year-over-year, driven by lower input costs, improved product mix, and higher market share in key regions.

• Free cash flow and net debt reduction targets reaffirmed.

• CapEx for FY2025 guided at INR 1,800 crores.

• Board approved a rights issue of up to INR 4,200 crores to strengthen the balance sheet, subject to regulatory approvals.