UPL Ltd Q2 FY27 Results Analysis: Revenue Slips 1.32%, EBITDA Margin Expands 190 bps
UPL Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 11,860.00 Cr (-1.32% YoY) and PAT growth of -26.14% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 02, 2026 |
|---|---|
| Revenue (Q2) | Rs. 11,860.00 Cr (-1.32% YoY) |
| PAT (Q2) | Rs. 452.00 Cr (-26.14% YoY) |
| EBITDA margin | 18.55% (+190 bps YoY) |
| EPS (Q2) | Rs. 4.99 (-26.07% YoY) |
Quarter Snapshot
Q2 FY27 revenue declined 1.32% YoY, falling short of the company's 7-11% FY27 guidance, while EBITDA margin expanded 190 bps to 18.55% on cost discipline and mix shift toward Seeds and Non Agro. Cash flow quality deteriorated with CFO at -Rs.9,587 Cr and Debt/Equity rising to 0.79x, making H2 working capital normalization and a required +12.6% H2 revenue acceleration critical to the investment case.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 Revenue growth 7-11% | Notes §4 | H1 FY27: +3.79% YoY — Needs H2 +12.6% YoY to meet mid-point | Behind |
| FY27 EBITDA growth 10-14% | Notes §4 | H1 FY27: +10.6% YoY (computed from TTM) — at low end of range | On track |
| Deleveraging trajectory "fully intact" | Notes §4, §5 | Net Debt/EBITDA: 3.02x vs 2.4x in Q1 FY27 — H2 normalization needed | Seasonal deterioration |
| Q1 FY27 Revenue growth 10-14% | Notes §4 | Actual: +10% — at low end | Met |
| Q1 FY27 EBITDA growth 14-18% | Notes §4 | Actual: +15% — within range | Met |
| Hytech Egypt completion by Jan 31, 2027 | Notes §9 | Acquisition announced Aug 15, 2026; pending approvals — awaiting regulatory clearance | On track |
| Advanta IPO | Notes §3 | SEBI approval received — awaiting launch details | On track |
| "Strongest Q1 revenue and EBITDA growth in past four years" | Notes §5 | Q2 FY27 Revenue -1.32% YoY; EBITDA +9.95% YoY — Q2 momentum faded on revenue | Partially contradicted |
| "Seventh consecutive quarter of revenue and EBITDA growth" | Notes §5 | H1 revenue +3.79% YoY; EBITDA +10.6% — growth continued | Confirmed |
| "Structural, contribution-led margin expansion for seventh consecutive quarter" | Notes §5 | Segment Result margin 15.00% vs 12.97% YoY (+203 bps) | Confirmed |
Key Numbers, Quarter by Quarter
| Metric | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | Trend |
|---|---|---|---|---|---|
| Revenue (Rs. Cr) | 12,269 | 18,335 | 10,181 | 11,860 | Seasonal peak in Q4; Q2 +16.5% QoQ |
| EBITDA Margin | 19.8% | ~20% | 14.7% | 18.55% | Strong seasonal Q2 margin recovery |
| Segment Result Margin | 12.97% | ~14.5% | ~10.8% | 15.00% | Expanding margin trajectory |
| Net Debt/EBITDA | 2.5x | <1.6x | 2.4x | 3.02x | Seasonal deterioration — needs H2 reversal |
Key Investment Insights
Key Positives
- EBITDA grew 9.95% YoY to Rs.2,200 Cr with margin expansion of 190 bps to 18.55% despite revenue decline of 1.32%
- Crop Protection segment margin expanded 201 bps to 13.44% with segment results up 9.08% YoY despite 7.21% revenue decline
- Seeds & Post Harvest revenue grew 10.86% YoY with segment results up 24.63% and margin expanding 252 bps to 22.87%
- Non Agro revenue grew 61.83% YoY with specialty chemicals up 51% YoY and 17% volume growth
- Seventh consecutive quarter of margin expansion with segment result margin at 15.00% vs 12.97% YoY
- Employee costs declined 15.42% YoY, contributing 174 bps of operating leverage
- Capex contained at Rs.798 Cr vs Rs.989 Cr YoY
- Impairment loss on financial assets declined 37.72% YoY to Rs.71 Cr
Risk Factors
- Revenue declined 1.32% YoY, well short of the 7-11% FY27 guidance; H2 needs +12.6% YoY growth to meet mid-point
- CFO was negative Rs.9,587 Cr vs -Rs.4,811 Cr YoY with CFO/PAT ratio of -25.3x
- Debt/Equity rose from 0.53x to 0.79x with Net Debt/EBITDA at 3.02x vs 2.4x in Q1 FY27
- PAT to owners declined 23.87% YoY; normalized PAT declined 16.2% YoY
- Raw material costs rose 7.79% YoY against revenue decline of 1.32%, compressing gross margin by 471 bps
- FX losses rose 339% YoY to Rs.136 Cr from West Asia tensions and emerging market depreciation
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.