UPL says new product launches to drive India ops' FY26 top-line growth
This story was originally published at 17:13 IST on 12 May 2025
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--UPL: Seeds business is growing almost 15% a year
--CONTEXT: Comments by UPL's mgmt at post-earnings press conference
--UPL: US contributes around 15% to our revenue
--UPL: Used to uncertainty, believe tariff situation is a tailwind for us
--UPL: Outlook for India business very positive for FY26
--UPL: New launches will drive growth of India business in FY26
--UPL: Have planned for capex of $225 million for FY26
--UPL: Next stage for Advanta Seeds would be an IPO
MUMBAI – UPL Ltd. Monday said new product launches will drive the growth of its India business in 2025-26 (Apr-Mar). The company has a very positive outlook for FY26 for the domestic business, its management told reporters at a post-earnings press conference.
The India business contributes around 13% to its overall revenues while the US business contributes around 15%. UPL expects to gain from the ongoing tariff turmoil in the US. "We are used to volatility in currency, raw material prices," its Chief Executive Officer Jai Shroff said about the uncertainty in global markets right now and expects it to create tailwinds for the company.
UPL reported its earnings on Monday during market hours. It reported a consolidated net profit of INR 8.96 billion on revenues of INR 155.73 billion. The agrochemical company reported a net debt of INR 138.6 billion as of Mar. 31, down INR 83.2 billion from a year ago. For the March quarter, its earnings before interest, tax, depreciation, and amortisation were INR 32.4 billion, up 68% on year.
Its current net debt is 1.7 times EBITDA. The company said deleveraging of the balance sheet remains a key focus for it, but it is happy sustaining the net debt at 1.5-1.7 times its EBITDA.
tTe company plans to launch over 25 new products in FY26, with an expected revenue of $130 million, through its global crop protection business UPL Corp. The company had launched over 200 new products in FY25, generating around $93 million. UPL derives around 75% of its revenue from global operations, its management said. It will continue focusing its research and development efforts in higher value segments like differentiated and natural plant protection, where margins are higher. Over the next few years, the company plans to ramp up its launches to products that will earn over $200 million.
The company plans to utilise around $225 million for capital expenditure in FY26. During FY25, the company had budgeted for a capital expenditure of INR 18 billion or around $212 million.
On the company's seeds business, the management said it growing at almost 15% a year and will continue to grow going forward, gaining market share and profitability. Revenue from the seeds business for the March quarter was INR 15.45 billion, up nearly 37% on year. The segment contributed around 10% of the company's consolidated revenue during the quarter. On its subsidiary, Advanta Enterprises Ltd., the company said the next stage for it would be an intial public offer.
Monday, shares of the company closed at INR 676.85 on the National Stock Exchange, up 0.3%. End
Reported by Anand JC and Arya S. Biju
Edited by Akul Nishant Akhoury
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