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Informist, Wednesday, Nov. 5, 2025

By Pallavi Singhal  

NEW DELHI – Agrochemical products company UPL Ltd. is likely to report a consolidated net profit for the September quarter, against a net loss in the year-ago quarter, helped by improving global demand, according to analysts. The company is expected to report a net profit of INR 1.8 billion for the reporting quarter, according to the average of estimates from six brokerages. The company had reported a net loss of INR 4.4 billion in the year-ago quarter and a loss of INR 790 million in the trailing quarter. 

The lowest estimate for the company's September quarter net profit was INR 278 million by Elara Securities (India) Pvt. Ltd. and the highest estimate was INR 3.4 billion by Anand Rathi Share and Stock Brokers Ltd. 

UPL manufactures and markets agrochemical products in India and across Latin America and North America. While the company is expected to gain from improving global demand, analysts caution domestic challenges could limit the company's recovery.

Analysts expect only a marginal rise in the company's top line, as subdued demand in India offsets gains overseas. The kharif season, which began strongly with higher sowing, was later disrupted by excessive rainfall and elevated channel inventories, both of which weighed on agrochemical sales. Heavy rains often wash away recently sprayed products, and farmers do not respray as this involves significant costs.

Analysts project UPL's September quarter revenue at INR 112.5 billion, up 1.4% from the year ago quarter and 22% from the trailing quarter, according to the average of estimates. Revenue projections range from a low of INR 108.4 billion by Nuvama Wealth Management Ltd. to a high of INR 114.5 billion by brokerage Anand Rathi.

Nirmal Bang Equities Pvt. Ltd. expects UPL's top line growth and margin expansion to be driven by strong volumes in Latin America and the US. A promising outlook for rabi crops, supported by higher reservoir levels and favourable soil moisture, likely boosted sales of crop protection chemicals toward the end of the quarter, the brokerage said. Kotak Securities, meanwhile, expects profit margins to improve, supported by lower input costs, selective price increases, and better plant utilisation.

The company's earnings before interest, tax, depreciation, and amortisation for the quarter are estimated at INR 16.85 billion, up 7% on year, according to the average of estimates from five brokerages. Sequentially, the EBITDA is seen rising 29%, driven by a seasonal uptick in sales during the kharif sowing period. Kotak sees the company's net debt increasing quarter-on-quarter as borrowing patterns typically peak in the September quarter.

Out of the nine brokerage reports available on the company with Informist, five have a 'buy' rating with an average target price of INR 735. Three brokerages recommend holding the stock with an average target price of INR 598. One brokerage has a sell recommendation with a target price of INR 470.

UPL is scheduled to announce its Jul-Sept earnings on Thursday. On Tuesday, shares of the company ended 0.1% higher at INR 731.35 on the National Stock Exchange. The shares are down 10% since the company reported its June quarter earnings on Aug. 1.

Following are the Jul-Sept earnings estimates for UPL Ltd. from six brokerage firms in descending order by the estimate of net profit, in INR million:

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Edited by Avishek Dutta

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