UPL Limited Shares Rally 3% After Strong Q4 Results and Positive FY26 Guidance
UPL Limited Shares : Shares of UPL Limited, one of the largest global agriculture companies, surged over 3.4% on Monday, reaching a new 52-week high of ₹698.85 on the Bombay Stock Exchange (BSE). This impressive movement came in response to the company’s robust Q4 FY25 results and a positive revenue growth forecast of 4-8% for FY26.
With a market capitalization of approximately ₹57,661.8 crore, UPL’s stock has delivered a stellar 31% return over the past year. The strong performance on the bourses reflects investors’ renewed confidence, driven by improved profitability, strong cash flow generation, and a forward-looking strategy.
🔍 Q4 FY25 Financial Performance: Turnaround in Profitability
UPL reported revenue from operations of ₹15,573 crore for the fourth quarter of FY25, representing an 11% year-on-year (YoY) growth and a whopping 43% quarter-on-quarter (QoQ) increase from ₹10,907 crore in Q3 FY25.
The company registered a net profit of ₹1,079 crore in Q4 FY25, up 26% QoQ from ₹853 crore and a remarkable comeback from a net loss of ₹80 crore in Q4 FY24.
“Our consistent focus on cost discipline, operational efficiency, and strategic investments is bearing fruit,” said the company’s management in a post-results interaction.
💰 EBITDA and Margins on the Rise
UPL’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at ₹3,240 crore, showing a massive 68% YoY growth from ₹1,930 crore in Q4 FY24.
The EBITDA margin also expanded significantly to 20.8%, an improvement of 710 basis points from 13.7% a year ago.
📉 Debt Reduction and Strong Free Cash Flow
In a notable achievement, the company reduced its net debt by ₹8,320 crore, bringing it down to ₹13,860 crore. This was supported by a robust operating free cash flow of ₹4,450 crore and funds from two key capital transactions.
🧪 Segment-wise Revenue Breakdown
| Segment | Revenue (₹ crore) | Contribution to Total Revenue | YoY Growth |
|---|---|---|---|
| Crop Protection | 13,374 | 85.7% | 8% |
| Seeds | 1,545 | 10% | Not Disclosed |
| Non-agro Business | 682 | 4.4% | Not Disclosed |
Additionally, the Board of Directors has recommended a dividend of ₹6 per share (300% on the face value of ₹2), underlining its commitment to shareholder value.
📈 FY26 Guidance: Staying the Course
After exceeding its FY25 guidance across revenue, EBITDA, and cash flow metrics, UPL has outlined optimistic targets for FY26:
- Revenue Growth: 4–8%
- EBITDA Growth: 10–14%
- Free Cash Flow Generation: Likely to remain strong
In FY25, UPL had set out to achieve 4–8% revenue growth, and it hit the upper end with 8% growth. Similarly, it targeted above 50% EBITDA growth and achieved a close 47%. The operational free cash flow guidance of $300–$400 million was also exceeded with an actual figure of $530 million.
🏢 About UPL Limited
UPL Limited is a global leader in sustainable agricultural solutions. Its core business includes agrochemicals, industrial and specialty chemicals, and seeds. With operations in over 130 countries, UPL supports the entire agrifood value chain, helping farmers increase yield while reducing environmental impact.
📊 Key Financial Ratios and Market Data
| Metric | Value |
|---|---|
| Market Cap | ₹57,661.8 Cr |
| Current Price | ₹674 |
| 52-Week High/Low | ₹699 / ₹459 |
| Stock P/E | 50.6 |
| Book Value | ₹346 |
| Dividend Yield | 0.15% |
| ROCE | 7.76% |
| ROE | 4.01% |
| Face Value | ₹2.00 |
❓ Frequently Asked Questions (FAQs)
Q1. Why did UPL shares jump 3% today?
UPL shares rallied following the announcement of strong Q4 FY25 results and a positive revenue growth guidance for FY26. Investors reacted positively to improved profitability and debt reduction.
Q2. What were the key highlights of UPL’s Q4 FY25 results?
UPL posted a revenue of ₹15,573 crore, a net profit of ₹1,079 crore, and an EBITDA of ₹3,240 crore. The EBITDA margin rose to 20.8%, and the company turned profitable after posting a loss in Q4 FY24.
Q3. What is UPL’s revenue growth guidance for FY26?
The company has guided for a revenue growth of 4–8% and an EBITDA growth of 10–14% in FY26.
Q4. How much debt has UPL reduced in FY25?
UPL reduced its net debt by ₹8,320 crore, thanks to strong cash flows and capital transactions.
Q5. What is the dividend announced by UPL?
The Board has recommended a dividend of ₹6 per equity share (300% on face value).
Q6. Is UPL a profitable company now?
Yes, after turning around from a loss in Q4 FY24, UPL posted a solid profit in Q4 FY25 and demonstrated improved operating performance.
This article aims to help investors and readers stay informed about one of India’s top agrochemical giants. Stay tuned to Narayan Ventures for more insightful stock market coverage.
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