UPL Earnings Surprise: Stock Surges 7% On Strong Operational Turnaround; SEBI Analyst Eyes Path To Profitability

The analyst remains cautiously positive on the turnaround, supported by H2 revenue tailwinds and disciplined execution.

UPL shares surged 7% on Monday after the agrochemical company reported narrower losses in its June quarter (Q1 FY26) earnings, along with optimistic commentary for the second half of the year. 

SEBI-registered analyst Financial Independence (FIS) noted that this significant narrowing reflects better working capital and expense control.

The management reaffirmed its guidance of 4%-8% revenue growth and 10%-14% EBITDA growth. It expects $130 million incremental revenue in H2 from new launches this year.

Q1 Earnings Review 

Its revenues rose a modest 2% to ₹9,216 crore, led by mix shift and regional strength, while net profit narrowed to ₹176 crore from ₹527 crore. 

EBITDA came in 14% higher at ₹1,303 crore, on the back of higher margins and better pricing. Margins rose to 14.1%.

UPL’s India business revenue grew 21%, while Advanta reported 20% growth, and UPL Corp declined 3% due to Brazil softness

FIS remains cautiously positive on UPL as it posted a meaningful recovery from loss, with EBITDA growth and margin gains underpinning financial discipline. And while loss persists, momentum and operational control suggest a path to profitability ahead, according to them.

Brokerages Bullish

Brokerages are optimistic on this agrochemical manufacturer post its Q1 earnings. According to reports, Nuvama Institutional Equities has a ‘Buy’ rating with a revised target price of ₹808 from ₹781. They believe that the worst of the inventory and pricing pressure is behind UPL. Meanwhile, Antique Stock Broking has raised its target price to ₹730 from ₹710. 

UPL shares have risen 41% year-to-date (YTD). 

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