UPL Reports 5% EBITDA Growth in Q2 FY27; H1 Operational Profit Rises 33%

Mumbai: UPL Limited has reported a 5% year-on-year increase in EBITDA to ₹2,312 crore for the second quarter of FY 2026-27, supported by improved operational efficiency, cost discipline and growth in its specialty chemicals and seeds businesses.

The company's operational profit after tax attributable to minority interest (PATMI), excluding exceptional items, stood at ₹422 crore during the quarter, an increase of ₹11 crore compared with the corresponding period last year.

Despite a challenging global operating environment, UPL maintained its profitability momentum, marking its eighth consecutive quarter of growth in margins and EBITDA. Higher input costs and subdued global crop protection volumes, however, continued to pose challenges for the business.

For the first half of FY27, UPL recorded revenue of ₹22,041 crore, registering a 4% year-on-year increase. The growth was primarily driven by its Advanta seeds business, which reported an 18% increase in revenue, and SUPERFORM, which recorded 21% growth.

Geographically, North America and the Rest of the World (RoW) markets registered revenue growth of 19% and 14%, respectively, while India recorded 5% growth.

The company's contribution margin and EBITDA margin expanded by 140 basis points and 80 basis points, respectively. Absolute contribution and EBITDA increased by 7% and 9%, respectively.

H1 operational PATMI rose 33% year-on-year to ₹441 crore, reflecting improved operating performance and higher other income.

UPL's specialty chemicals business recorded 50% growth during Q2, while its seeds and post-harvest platforms registered 12% growth.

The company's contribution increased 1% year-on-year, with the contribution margin expanding by 100 basis points to 42.9%.

EBITDA margin improved by 120 basis points, supported by operational discipline and lower selling, general and administrative expenses (SG&A), which helped offset higher input costs.

Regionally, North America and other international markets recorded 19% growth each during the quarter.

While the broader group maintained profitability growth, UPL's international crop protection operations continued to face pressure from lower volumes and challenging weather conditions.

UPL Corporation Limited reported an 8% decline in revenue, primarily due to lower sales volumes. Unfavourable weather conditions, phased sales and weak demand affected markets in Brazil and other Latin American countries, while drought-like conditions weighed on business in Europe.

Higher manufacturing input costs also affected contribution margins, which declined by 120 basis points. However, disciplined cost management helped partially offset the impact.

UPL SAS reported 1% revenue growth, with improved pricing and stronger performance from its branded portfolio helping offset lower crop protection volumes and prolonged dry spells.

Advanta continued to contribute significantly to the group's growth, with H1 revenue increasing 18% and EBITDA rising 21%.

Growth in the seeds business was supported by pricing and favourable foreign exchange movements, with corn contributing in Argentina and other Latin American markets, while sunflower and grain sorghum also recorded growth.

However, India and Thailand experienced some impact from El Niño conditions and monsoon delays.

SUPERFORM reported 28% revenue growth during Q2, supported by cost pass-through measures and strong demand in specialty chemicals. Its super specialty chemicals segment recorded 50% growth in the quarter.

The business also reported a 39% year-on-year increase in EBIT, supported by improved pricing, contract manufacturing and a favourable product mix.

For H1 FY27, SUPERFORM's revenue increased 21%, while EBITDA and EBIT grew 13% and 30%, respectively.

As part of its expansion strategy, Advanta has agreed to acquire a 99.98% stake in Egypt-based Misr Hytech Seed International for approximately US$110 million.

The acquisition is expected to be completed on or before January 31, 2027, subject to regulatory approvals. The proposed transaction is aimed at strengthening Advanta's international seeds business and expanding its market presence.

Commenting on the quarterly performance, Jai Shroff, Chairman and Group CEO of UPL Limited, said the company's diversified business model helped it navigate global market volatility.

He highlighted the performance of Advanta and SUPERFORM, while noting that the crop protection business continued to manage phased demand and challenging weather conditions.

Shroff also observed that rising commodity prices could potentially improve farm economics, while reiterating the company's focus on building a stronger and future-ready business.

Bikash Prasad, Group CFO of UPL Limited, said the first-half performance reflected the resilience of the company's earnings despite challenging market conditions.

He highlighted eight consecutive quarters of margin and EBITDA growth, attributing the performance to portfolio decisions, cost management and capital discipline.

The company is also prioritising cash generation, debt reduction and improved returns.

UPL's net working capital stood at 145 days in September 2026, compared with 118 days in the corresponding period last year, primarily due to higher inventory levels. Its total net debt stood at US$3 billion, an increase of US$312 million year-on-year.

The company has also undertaken refinancing measures, including the prepayment of a US$500 million term loan due in December 2026 through US$400 million of refinancing extending to FY32.

With continued growth in its seeds and specialty chemicals businesses, UPL is looking to strengthen its earnings profile while addressing cost pressures, working capital requirements and uneven demand across global crop protection markets.