UPL · Chemicals · filed 2 Nov 2026
UPL Ltd. reported revenue of ₹11,860 cr for July to September 2026, −1.3% on the year and +16.5% on the quarter. That is slower than this quarter has grown in recent years (+8.7% on average). Over the last four quarters revenue comes to ₹52,645 cr, +10.3% on the four before.
Operating profit (EBITDA) was ₹2,200 cr, a margin of 18.5%, +190 bps on the year and +431 bps on the quarter. Over the last 8 quarters the margin has ranged from 14.2% to 20.3%, averaging 17.2%. Operating costs grew −3.6% against revenue growth of −1.3%, so more of each rupee of sales reached operating profit.
Net profit was ₹452 cr, −26.1% on the year and — on the quarter, with earnings per share of ₹4.99. Profit before other income, one-offs and tax fell 36.7%, so 11 points of the headline growth came from outside the core business. The tax rate of 27% is in line with its recent average. Profit over the last four quarters totals ₹2,163 cr, −8.7% on the four before.
Agri inputs are seasonal and move with the monsoon and with subsidy payments, so quarters are best compared with the same quarter a year earlier.
On earnings per share of ₹22.38 over the last four quarters, the stock at ₹534.65 trades at 23.9 times trailing earnings.
Profit with no operating cash behind it. Where did the cash go?
Operating cash flow for the first half −₹9,587 cr against profit of ₹379 cr.
Source: Cash flow statement
Inventory is piling up against sales. Slow demand, or stocking ahead?
Inventory at 167 days of sales, against 89 days at the last year end (₹20,165 cr now, ₹12,676 cr then).
Source: Balance sheet
Receivables grew much faster than sales. Who has not paid, and why?
Receivables at 154 days of sales, against 129 days at the last year end (₹18,638 cr now, ₹18,343 cr then).
Source: Balance sheet
Could not run on this quarter: IPO money used as stated, Related-party transactions, Promoter pledges and allotments, Earlier promises against delivery. The filing did not carry these lines.
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Balance sheet | Sep '26 | Last year end | Change |
|---|---|---|---|
| Trade receivables | ₹18,638 cr | ₹18,343 cr | ▲ 1.6% |
| Inventory | ₹20,165 cr | ₹12,676 cr | ▲ 59.1% |
| Cash | ₹3,268 cr | ₹5,975 cr | ▼ 45.3% |
| Bank balances | ₹64.0 cr | ₹111 cr | ▼ 42.3% |
| Long-term borrowings | ₹10,926 cr | ₹15,535 cr | ▼ 29.7% |
| Short-term borrowings | ₹21,789 cr | ₹6,511 cr | ▲ 234.6% |
| Trade payables | ₹14,046 cr | ₹12,018 cr | ▲ 16.9% |
| Net block | ₹8,321 cr | ₹8,474 cr | ▼ 1.8% |
| Capital work in progress | ₹1,308 cr | ₹999 cr | ▲ 30.9% |
| Equity | ₹34,824 cr | ₹34,696 cr | ▲ 0.4% |
| Total assets | ₹1.01 lakh cr | ₹95,205 cr | ▲ 6.1% |
| Cash flow, year to date | This year | Last year |
|---|---|---|
| Operating cash flow | −₹9,587 cr | −₹4,811 cr |
| Capital expenditure | −₹798 cr | −₹989 cr |
| Investing cash flow | −₹1,270 cr | −₹793 cr |
| Financing cash flow | ₹8,124 cr | −₹155 cr |
| Dividends paid | −₹507 cr | −₹478 cr |
Operating cash flow was -25.30× profit. Receivables at 154 days of sales (+25 days against the last year end). Inventory at 167 days of sales (+78 days).
No emphasis of matter.
Composite Scheme of Arrangement approved for amalgamation of UPL SAS into UPL Ltd, demerger into UPL Global, and amalgamation of UPLCL into UPL Global;…
Tax: Consolidated tax expense of ₹163.00 crore (current tax ₹330.00 crore, deferred tax credit ₹167.00 crore) on Profit before tax of ₹615.00 crore
| Metric | Q2 FY27 | Q2 FY26 |
|---|---|---|
| Volumes (mt) | -10 | 0 |
| Channel inventory days (days) | 145 | 118 |
| Q2 Contribution Margin | 42.9% | 41.9% |
| Days Inventory Outstanding (days) | 140 | 124 |
| Days Sales Outstanding (DSO) (days) | 150 | 146 |
| Trailing 12-Month Net Debt to EBITDA (x) | 2.9 | 2.7 |
| Structural Debt (Net Debt less Net Working Capital) ($ million) | 800 | — |
not disclosed
Government subsidy receivables are not applicable as UPL is an agrochemical and seed solutions provider rather than a subsidized fertilizer manufacturer.
Consolidated net working capital expanded by 27 days YoY to 145 days, led by DIO increasing 16 days to 140 days (inventory at ₹20,165 crore) due to seasonal H2 build-up, lower crop protection volumes, and Latin America/Europe channel illiquidity.
Inventory accumulation and working capital expansion reflect persistent channel illiquidity in LATAM and weather disruptions in Europe.
Read using the Agriculture, fertilisers and agrochemicals framework (named in the filing read). Primary valuation lens: P/E through the season.
Read more closely in this sector: Age of subsidy receivables · Channel inventory build.
| This quarter | YoY | |
|---|---|---|
| Superform (Manufacturing & Specialty Chemicals) | 3579.00 | +28.0% |
| UPL Corp (Global Crop Protection) | 7972.00 | −8.0% |
| UPL SAS (India Crop Protection) | 921.00 | +1.0% |
| Advanta (Seeds & Post-Harvest) | 1875.00 | +12.0% |
Source: transcript p.13, 14, 16, 18
| This quarter | YoY | |
|---|---|---|
| Superform EBIT | 323.00 | +39.0% |
| UPL Corp EBITDA | 1083.00 | — |
| UPL SAS EBITDA | 214.00 | +3.0% |
| Advanta EBITDA | 510.00 | +19.0% |
Source: transcript p.14, 16, 17, 19
| This quarter | YoY | |
|---|---|---|
| Advanta H1 Revenue | 3629.00 | +18.0% |
| Advanta H1 EBITDA | 868.00 | +21.0% |
| UPL Crop H1 Revenue | 14345.00 | −2.0% |
| UPL SAS H1 EBITDA | 553.00 | +20.0% |
Source: transcript p.16, 17, 19
| Metric | Guidance | For | Against earlier guidance |
|---|---|---|---|
| Revenue Growth Guidance | 7.00–11.00 % | FY2027 | was maintained (reconfirmed comfortable with guidance) |
| EBITDA Growth Guidance | 10.00–14.00 % | FY2027 | was maintained (reconfirmed comfortable with guidance) |
| Net Debt to EBITDA Target | 1.50–1.50 x | Medium-term | was maintained |
| Capex and Growth Investment Guidance | 425.00 | FY2027 | was maintained |
Held for next quarter's said-then-did check.
| Question | Answer | Answered? |
|---|---|---|
| Are you going ahead with the corporate reorganization scheme or open to reworking it given negative market perception? | Management stated they cannot comment on this call but will update the market in accordance with listing obligations if there are material developments. | deflected |
| Why is LIC nominating a director on the board at this time? | LIC is a long-term shareholder and NRC felt bringing senior LIC expertise in finance/risk enhances overall board governance; timing should not be misconstrued. | yes |
| Are the ₹75 crore VAT provision reversal and ₹57 crore corporate settlement one-off items that should be in exceptional? | VAT reversal was an operational working capital provision reversal, and the ₹57 crore settlement was an operational take-or-pay contract termination fee. | yes |
| When will higher Chinese glufosinate and technical prices reflect in higher realizations in Americas markets? | Price increases will take effect in Americas once lower-cost channel inventory liquidates during the ongoing season. | yes |
| What was the factoring amount this quarter and what is the net debt and capex guidance? | Factoring was ~$70 million lower YoY; capex and growth investment guidance remains $425 million, with medium-term net debt to EBITDA target at 1.5x. | partly |
| Why did employee expenses decline 15% YoY in Q2? | Driven by GBS transition (headcount up 3x across lower-cost hubs in Pune, Colombia, Mauritius), target operating model cost savings, and FX devaluation. | yes |
Tone against the last call. Management shifted from focusing solely on reported net debt reduction targets to introducing 'structural debt' ($800 million / 0.7x gearing) to explain working capital expansion.
| Segment | Revenue | YoY | Result | YoY |
|---|---|---|---|---|
| Crop protection | ₹9,034 cr | ▼ 7.2% | ₹1,214 cr | ▲ 9.1% |
| Seeds & Post harvest | ₹1,858 cr | ▲ 10.9% | ₹425 cr | ▲ 24.6% |
| Non agro | ₹1,060 cr | ▲ 61.8% | ₹154 cr | ▲ 38.7% |
UPL delivered Q2 FY27 revenue of ₹11,860 crore (-1% YoY) and H1 FY27 revenue of ₹22,041 crore (+4% YoY), supported by double-digit growth in Advanta (+12%) and Superform (+28%) which cushioned a 16% volume drop in global crop protection (UPL Corp). Operational net profit reached ₹422 crore in Q2, driven by an eighth consecutive quarter of EBITDA margin expansion (+120 bps to 19.5%) and SG&A cost optimization. However, operating cash flow was constrained as net working capital expanded by 27 days to 145 days, pushing reported net debt to ~$3 billion. UPL mitigated refinancing risk by extending $400 million of debt to FY32. What remains unresolved is the working capital unwinding trajectory in LATAM and the final timeline for the corporate reorganization scheme.
What matters most. Normalization of working capital and liquidation of high-cost channel inventory in LATAM during H2 to convert inventory into cash flow and reduce reported net debt.
What would change it. Further expansion in working capital days beyond 145 days or persistent volume contraction in UPL Corp during the peak H2 season.
| Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹9,887 cr | ₹14,078 cr | ₹9,067 cr | ₹11,090 cr | ₹10,907 cr | ₹15,573 cr | ₹9,216 cr | ₹12,019 cr | ₹12,269 cr | ₹18,335 cr | ₹10,181 cr | ₹11,860 cr |
| YoY | — | — | +1% | +9% | +10% | +11% | +2% | +8% | +12% | +18% | +10% | −1% |
| EBITDA margin | 0.7% | 13.1% | 11.8% | 11.0% | 15.4% | 20.3% | 15.1% | 16.6% | 18.2% | 19.0% | 14.2% | 18.5% |
| Other income, % of PBT | — | 220% | — | — | 27% | −12% | — | 32% | 5% | 9% | — | 30% |
| Exceptional items | — | — | — | — | — | — | — | −₹142 cr | — | — | ₹9.0 cr | ₹1.0 cr |
| Tax rate | — | — | — | — | — | 22% | — | 22% | 27% | 32% | — | 27% |
| Net profit | −₹1,607 cr | −₹80.0 cr | −₹527 cr | −₹585 cr | ₹853 cr | ₹1,079 cr | −₹176 cr | ₹612 cr | ₹490 cr | ₹1,294 cr | −₹73.0 cr | ₹452 cr |
| YoY | — | — | −617% | — | — | — | — | — | −43% | +20% | — | −26% |
| Core profit YoY | — | — | — | — | — | — | — | — | +144% | +12% | — | −37% |
| EPS | −₹14.41 | ₹0.47 | −₹4.55 | −₹5.25 | ₹9.81 | ₹10.61 | −₹1.04 | ₹6.75 | ₹4.70 | ₹12.57 | ₹0.12 | ₹4.99 |
| Flags | · | 1 | 1 | ✓ | ✓ | 1 | ✓ | 1 | ✓ | ✓ | ✓ | 3 |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
UPL Ltd. reported revenue of ₹11,860 cr (−1.3% on the year) and net profit of ₹452 cr (−26.1% on the year) for July to September 2026.
Profit before other income, exceptional items and tax moved −36.7% on the year, against −26.1% for reported profit.
3 checks raised a question: Profit with no operating cash behind it. Where did the cash go?
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