Earnings Review
Labour code, tax costs drag down UPL Q3 PAT YoY
This story was originally published at 18:38 IST on 2 February 2026
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--UPL Oct-Dec consol net profit INR 3.96 bln
--Analysts saw UPL Oct-Dec consol net profit at INR 5.16 bln
--UPL Oct-Dec consol revenue INR 122.69 bln
--Analysts saw UPL Oct-Dec consol revenue at INR 113.92 bln
--UPL Oct-Dec consol net profit INR 3.96 bln vs INR 8.28 bln year ago
--UPL Oct-Dec consol revenue INR 122.69 bln vs INR 109.07 bln year ago
--UPL Oct-Dec labour code implementation cost INR 590 mln
--UPL Oct-Dec net profit includes one-time cost INR 560 mln
--UPL Apr-Dec consol net profit INR 8.61 bln vs INR 10.00 mln year ago
--UPL Apr-Dec consol revenue INR 335.04 bln vs INR 310.64 bln year ago
--UPL Oct-Dec consol crop protection revenue INR 99.95 bln vs INR 91.46 bln
--UPL Oct-Dec consol seeds revenue INR 15.62 bln vs INR 12.97 bln yr ago
--UPL Oct-Dec consol non-agro revenue INR 7.35 bln vs INR 5.05 bln yr ago
--UPL Oct-Dec consol EBITDA INR 24.34 bln, up 13% on year
--UPL Oct-Dec consol EBITDA margin 19.8%, unch on year
--UPL Oct-Dec Latin America revenue INR 51.37 bln vs INR 48.15 bln year ago
--UPL Oct-Dec Europe revenue INR 15.54 bln vs INR 12.85 bln year ago
--UPL Oct-Dec India revenue INR 11.48 bln vs INR 11.05 bln year ago
--UPL Oct-Dec North America revenue INR 16.17 bln vs INR 15.71 bln year ago
--UPL: Net debt INR 233.17 bln on Dec 31
--UPL maintains FY26 EBITDA YoY growth guidance at 12-16%
--UPL maintains FY26 revenue YoY growth guidance at 4-8%
By P. Madhu Kumar and Sunil Raghu
MUMBAI – UPL Ltd.'s consolidated net profit for the December quarter more than halved year-on-year due to a one-time cost incurred on implementation of the new labour laws and a tax outgo during the quarter. The company's consolidated top line surpassed analysts' expectations and registered steady on year growth, supported by a surge in volumes and favourable foreign exchange gains. Its top-line growth was the fastest in seven quarters on a year-on-year basis.
The agrochemical major posted a consolidated net profit of INR 3.96 billion in the December quarter, down over 52% on year and over 28% on a sequential basis. Analysts had projected a bottom line of INR 5.16 billion.
The company registered exceptional costs totalling INR 560 million in the reporting quarter. The company incurred a one-time cost of INR 590 million to be paid as gratuity as per the new labour laws which became effective in November and a restructuring cost of INR 20 million as part of the closure of its Bassen manufacturing facility. These costs were offset by a one-time gain of INR 50 million because the Supreme Court in Brazil ruled in favour of UPL's subsidiary there, which prompted a write-back of provision recorded in 2024-25 (Apr-Mar).
Further, the company also paid a tax cost of INR 1.81 billion in the reporting quarter. In the year-ago quarter, the company recorded a tax credit of INR 4.99 billion.
The company's consolidated net revenue rose over 12% on year to INR 122.69 billion, beating analysts' expectations of INR 113.92 for the same metric. The revenue growth was partially slowed down by a decline in contribution from its speciality chemicals arm, Superform Chemistries Ltd., which reported an over 11% fall on year in its revenue to INR 26.68 billion.
UPL's consolidated earnings before interest, tax, depreciation, and amortisation increased 13% on year to INR 24.34 billion in the December quarter on the back of better control on costs. The company's EBITDA margin remained unchanged on year at 19.8% in Oct-Dec. The company said EBITDA growth in the December quarter was driven by overall higher volumes and accretive contribution margin. The company maintained year-on-year EBITDA growth guidance for FY26 at 12-16% and on-year revenue growth guidance at 4-8%.
UPL's India revenue for the December quarter rose nearly 4% on year to INR 11.48 billion. It said the growth in India was led by seeds and supported by crop protection. The revenue from Latin America rose nearly 7% on year to INR 51.37 billion led by herbicides and field corn in Argentina but insecticide volume in Brazil was under pressure.
The Europe and North America revenue increased 11% on year each. The Europe revenue was INR 15.54 billion in the December quarter while North America revenue was INR 16.17 billion. The revenue growth in Europe was led mainly by herbicide volumes.
The company's consolidated revenue from producing and making chemicals-based insecticides, herbicides, and fungicides increased to INR 99.95 billion in the December quarter from INR 91.46 billion in the year-ago quarter. The revenue from seeds segment at a consolidated level increased to INR 15.62 billion from INR 12.97 billion a year ago led by volume and supported by pricing. Its growth was also driven mainly by field corn in India, Latin America, Thailand and Indonesia. The consolidated non-agro revenue, that includes super-specialty chemicals business, increased to INR 7.35 billion from INR 5.05 billion a year ago.
UPL's net debt was INR 233.17 billion as on Dec. 30, lower by INR 25.53 billion compared with the year ago level. For Apr-Dec, the company's consolidated net profit surged 861 times on year to INR 8.61 billion, while consolidated revenue increased to INR 335.04 billion, up nearly 8% on year.
Shares of UPL closed at INR 698.55 Monday, up over 5%, on the National Stock Exchange. End
Edited by Akul Nishant Akhoury
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