UPL · Chemicals · filed 2 Nov 2026
UPL Ltd. reported revenue of ₹1,826 cr for July to September 2026, +20.8% on the year and +30.7% on the quarter.
Operating profit (EBITDA) was ₹113 cr, a margin of 6.2%, −102 bps on the year and +282 bps on the quarter. Operating costs grew +22.1%, faster than revenue at +20.8%, so operating profit grew less than sales.
Net profit was ₹99.0 cr, −63.6% on the year and +11.2% on the quarter, with earnings per share of ₹1.17. Profit before other income, one-offs and tax grew faster, at +85.3%; other income, one-offs or tax held the headline back.
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.
Half or more of pre-tax profit came from other income. What is it, and does it repeat?
Other income was 52% of profit before tax, against 90% a year earlier.
Source: Results filing
Depreciation fell while the business grew. Were asset lives changed?
Depreciation ₹26.0 cr, −18.8% on the year.
Source: Results filing
Inventory is piling up against sales. Slow demand, or stocking ahead?
Inventory at 54 days of sales, against 31 days at the last year end (₹956 cr now, ₹485 cr then).
Source: Balance sheet
Core profit grew faster than reported profit: one-offs held the headline down.
Reported profit −63.6% on the year; profit before other income, exceptional items and tax +85.3%.
Source: Results filing
Could not run on this quarter: Exceptional items that recur, Cash behind the profit, 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 | ₹3,186 cr | ₹3,313 cr | ▼ 3.8% |
| Inventory | ₹956 cr | ₹485 cr | ▲ 97.1% |
| Cash | ₹47.0 cr | ₹29.0 cr | ▲ 62.1% |
| Bank balances | ₹19.0 cr | ₹79.0 cr | ▼ 75.9% |
| Short-term borrowings | ₹697 cr | ₹836 cr | ▼ 16.6% |
| Trade payables | ₹1,353 cr | ₹1,207 cr | ▲ 12.1% |
| Net block | ₹686 cr | ₹712 cr | ▼ 3.7% |
| Capital work in progress | ₹183 cr | ₹11.0 cr | ▲ 1,563.6% |
| Equity | ₹13,717 cr | ₹14,036 cr | ▼ 2.3% |
| Total assets | ₹16,957 cr | ₹17,951 cr | ▼ 5.5% |
Receivables at 180 days of sales (−30 days against the last year end). Inventory at 54 days of sales (+23 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.
| Q2 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|
| Revenue | ₹1,512 cr | ₹1,397 cr | ₹1,826 cr |
| YoY | — | — | +21% |
| EBITDA margin | 7.2% | 3.4% | 6.2% |
| Other income, % of PBT | 90% | 102% | 52% |
| Exceptional items | — | — | — |
| Tax rate | 23% | 26% | 25% |
| Net profit | ₹272 cr | ₹89.0 cr | ₹99.0 cr |
| YoY | — | — | −64% |
| Core profit YoY | — | — | +85% |
| EPS | ₹3.32 | ₹1.05 | ₹1.17 |
| Flags | 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 ₹1,826 cr (+20.8% on the year) and net profit of ₹99.0 cr (−63.6% on the year) for July to September 2026.
Profit before other income, exceptional items and tax moved +85.3% on the year, against −63.6% for reported profit.
3 checks raised a question: Half or more of pre-tax profit came from other income. What is it, and does it repeat?
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