UPL (UPL) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue grew 10% year-over-year to ₹10,907 crore, driven by volume growth, improved product mix, and operational efficiencies.

• EBITDA surged 420% year-over-year to ₹2,163 crore, with margin expansion to 19.8%.

• Net profit for Q3 FY25 reached ₹853–₹828 crore, reversing a loss in the prior year, aided by margin improvement and lower exceptional costs.

• Rights issue was oversubscribed, raising $100 million in December, with an additional $100 million expected by March 2025.

• Advanta Enterprises secured a $350 million investment from Alpha Wave Global, pending regulatory approval.

Financial highlights

• Q3 revenue: ₹10,907 crore, up 10% YoY; nine-month revenue: ₹31,064 crore, up 7% YoY.

• Q3 EBITDA: ₹2,163 crore (19.8% margin), a 4x increase YoY; nine-month EBITDA: ₹4,884 crore, up 36% YoY.

• Net profit for Q3: ₹853–₹828 crore, compared to a loss of ₹1,217–₹1,240 crore YoY.

• Working capital days reduced by 48 YoY; inventory and receivable days down 31 and 24, respectively.

• Net debt reduced by $745 million YoY to $3.02 billion; gross debt down $815 million YoY.

Outlook and guidance

• Confident in achieving full-year guidance: 50% EBITDA growth, $300–$400 million operating free cash flow, and net debt/EBITDA ratio around 2.

• Margin improvement expected to continue in Q4, with focus on working capital and cost discipline.

• Q4 expected to sustain margin improvements and strong cash generation, with new product launches contributing $85 million.

• Industry headwinds from ag commodity price softness and stable AI prices anticipated to persist.

• Completion of Advanta transaction expected post regulatory approvals.