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Informist, Friday, Aug. 1, 2025

--UPL: Insecticides dragged Brazil volume down Apr-Jun 

--CONTEXT: Comments by UPL management in post-earnings call with analysts 

--UPL: Latin America sales hit by pricing pressure in Brazil, product ageing 

--UPL: In Europe Q1 saw high sales growth in Germany, Italy, Belgium, Spain 

--UPL: Cautiously optimistic for growth in Q2, rest of FY26 

--UPL: Latin America order book currently higher than year-ago level 

By P. Madhu Kumar 

MUMBAI – Agrochemicals maker UPL Ltd. is cautiously optimistic about the company's growth prospects in the current quarter and the remainder of the financial year, its management said in a post-earnings conference call Friday. The management said it is confident that there will be "no material impact" on the company's overall operations because of the 25% tariff announced by the US on Indian goods.

UPL Friday reported a consolidated net loss of INR 880 million in the June quarter, sharply lower than the INR 3.84 billion a year ago. The company managed to narrow the losses by reducing inventory costs and controlling expenses.

The company said it is maintaining its guidance of 4-8% growth in revenue and 10-18% in earnings before interest, tax, depreciation, and amortisation for 2025-26 (Apr-Mar). The management said fungicides and herbicide sales across geographies and overall India sales drove its margin growth in the latest quarter. The company's EBITDA margin in Apr-Jun rose 150 basis points to 14.1%.

After a 10% decline in revenue from Latin America in Apr-Jun, the management is optimistic about growth in the region in the upcoming quarters. The company attributed the losses in Latin America to pricing pressure in Brazil and product ageing. Higher interest rates and foreign exchange losses were also among the key factors that dragged down the top line from the region. In terms of volumes, insecticides negatively impacted the volumes of products in Brazil.

Mike Frank, head of global crop protection at UPL, said the company saw a decline of 1% in pricing but they are focused on improving it and the pricing will likely be flat in the upcoming quarter. He said the growth in the Brazilian market for the remaining three quarters of FY26 will likely come from volume and not pricing.

The management also said its Latin America order book is higher compared to a year ago. Talking about growth in other geographies, management said the European region saw an increase in sales in Germany, Italy, Belgium and Spain. 

Friday, the company's shares closed 5.5% lower at INR 665.15 on the National Stock Exchange. 

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Saji George Titus

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