UPL Limited has announced its financial results for the second quarter and first half of fiscal year 2027. The company sustained profitable growth amid global headwinds, achieving its 8th consecutive quarter of margin and EBITDA growth. H1 Operational PATMI saw a significant increase of 33% year-on-year, driven by strong performance across its platforms and regions.
UPL Limited Announces Q2 and H1 FY27 Financial Highlights
UPL Limited has disclosed its financial performance for the second quarter (Q2) and the first half (H1) of the fiscal year 2027, ending September 30, 2026. The company has demonstrated sustained profitable growth, marking its 8th consecutive quarter of improvements in margins and EBITDA, even amidst global economic challenges and cost inflation.
Q2 FY27 Performance
In Q2 FY27, UPL Limited’s revenue was largely flat year-on-year, supported by favorable foreign exchange tailwinds that offset a decline in global crop protection volumes. The company’s performance was boosted by a 50% growth in Specialty Chemicals and a 12% growth in Seeds and Post-harvest segments. Geographically, North America and the Rest of the World (RoW) regions reported a 19% growth each.
Contribution margins increased by 100 basis points to 42.9%, with EBITDA growing by 5% to ₹2,312 crore. This EBITDA growth was attributed to operational discipline and reduced SG&A expenses, which helped mitigate higher input costs. Operational PATMI, excluding exceptional items, stood at ₹422 crore, up ₹11 crore year-on-year, primarily due to higher EBITDA and other income.
Net working capital stood at 145 days, an increase from 118 days in the previous year, mainly due to higher inventory levels. The company is focusing on improving inventory conversion and cash generation in the second half of the fiscal year. Total net debt at the end of September 2026 was $3.0 billion, up $312 million from the prior year, reflecting higher working capital requirements, planned capital expenditure, and investments.
H1 FY27 Performance
For the first half of FY27, UPL’s revenue rose by 4% to ₹22,041 crore, driven by Advanta (+18%) and SUPERFORM (+21%). Growth was observed in North America (+19%), Rest of the World (+14%), and India (+5%).
Both contribution and EBITDA margins expanded, with contribution margin up 140 basis points and EBITDA margin up 80 basis points. This led to a 7% growth in contribution and a 9% growth in EBITDA, respectively. Operational PATMI for H1 FY27 recorded ₹441 crore, an impressive 33% increase compared to the previous year, largely due to higher EBITDA and other income.
Key Developments
In a significant strategic move, Advanta has agreed to acquire 99.98% of Misr Hytech Seed International in Egypt for approximately $110 million, with completion expected before January 31, 2027, subject to regulatory approvals. Furthermore, S&P revised UPL Corp’s outlook to ‘Positive’ from ‘Stable’, affirming ‘BB’, while CRISIL revised UPL Ltd’s outlook to ‘Stable’ from ‘Negative’, reaffirming ‘AA+/A1+’.
Management Commentary
Jai Shroff, Chairman & Group CEO of UPL Limited, commented, “Our results this quarter reflect the strength of the diversified model we have built. Despite a volatile global backdrop, our businesses continued to execute with discipline; Advanta and SUPERFORM delivered strong growth, while our crop protection businesses navigated phased demand and challenging weather.”
Bikash Prasad, Group CFO, added, “Our first half performance underscores the resilience of UPL’s earnings in a challenging environment. Eight consecutive quarters of margins and EBITDA growth reflect our continued focus on quality of earnings, sharper portfolio decisions and firm cost and capital discipline.”
Segmental Performance
UPL Corporation Ltd. reported Q2 revenue of ₹7,972 crore, down 8% YoY, impacted by unfavorable weather and market conditions in certain regions. However, H1 revenue was down 2% at ₹14,345 crore.
UPL SAS saw Q2 revenue increase by 1% to ₹921 crore and H1 revenue by 1% to ₹2,061 crore, driven by pricing and strong hyperscale brand growth.
Advanta delivered a robust Q2 revenue of ₹1,875 crore, up 12% YoY, and H1 revenue of ₹3,629 crore, up 18% YoY, supported by seed revenue growth and favorable FX. Post-harvest business also showed strong growth.
SUPERFORM recorded a strong Q2 revenue of ₹3,579 crore, up 28% YoY, driven by cost pass-through and volume growth in super specialty chemicals. H1 revenue was up 21% to ₹6,498 crore.
The company also provided details on Revenue Performance by Regions and Platforms, highlighting regional growth drivers and contributions from different business segments.
Source: BSE
