UPL Limited reaffirmed its FY26 revenue and EBITDA growth guidance after reporting a sharp improvement in operating performance and a significantly narrowed net loss in Q1FY26. The company posted a consolidated net loss of ₹880 million, a considerable improvement from ₹3.84 billion in the year-ago period. Revenue remained largely flat year-on-year at ₹9,216 crore versus ₹9,067 crore, but improved cost management, better product mix, and enhanced operational efficiency lifted margins.
EBITDA surged 26.8% to ₹1,396 crore, with margins expanding 301 basis points to 15.15%, driven by a 390-bps rise in contribution margins. This was attributed to higher capacity utilisation, favourable pricing, and a reduction in input costs.
Among regions, India led with 21% revenue growth, while North America and Europe both grew 8%. Latin America and Rest of the World reported a 10% decline. Platform-wise, Advanta grew 20% and UPL SAS 13%.
The company also reported strong improvements in balance sheet health. Net working capital days dropped to 86 from 121, while net debt declined ₹6,129 crore sequentially to ₹21,371 crore following a ₹3,409 crore redemption of perpetual bonds in May. The ongoing rights issue is expected to conclude by the end of September.
Looking ahead, UPL maintained its FY26 guidance of 4–8% revenue growth and 10–14% EBITDA growth, highlighting sustained momentum in crop protection, organic-led growth at Advanta, and margin improvement in its SUPERFORM SSC platform. The management reiterated its long-term focus on value unlocking through restructuring, strategic investments, and disciplined financial execution.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.