UPL Bets on H2 Bounce: Export Recovery Eyed as FY26 Growth Engine

UPL Ltd is gearing up for a turnaround in the second half of FY26, banking on improved global demand, inventory normalization, and a $130 million product pipeline to revive its export momentum. After a turbulent FY24 marked by pricing pressures and high-cost inventory liquidation, the company’s annual report and analyst commentary signal cautious optimism for the months ahead.

 

Key Highlights:

 

H2 FY26 Recovery: Management expects volume growth of 5% and margin expansion across all segments, with exports leading the rebound.

 

FY24 Snapshot: Revenue rose 8% YoY to ₹46,640 crore, while EBITDA jumped 47% to ₹8,120 crore—driven by better product mix and rebate normalization.

 

FY26 Guidance: UPL projects 4–8% revenue growth and 10–14% EBITDA growth, with new launches across crop protection and biosolutions expected to fuel demand.

 

Export Strategy: Latin America and Europe are expected to recover first, aided by favorable sowing cycles and destocking trends. India and North America remain stable.

 

Pricing Headwinds: Overcapacity in China continues to pressure global agrochemical prices, but UPL sees signs of stabilization.

 

Innovation Focus: The company plans to roll out new products worth over $130 million in FY26, targeting high-margin categories and sustainable farming solutions.

 

Investor Sentiment: Despite mixed reactions to FY26 guidance, brokerages like Jefferies maintain a “Buy” rating, citing deleveraging progress and long-term potential.

 

With the second half of FY26 positioned as a springboard, UPL is betting on agility, innovation, and global recovery to reclaim its growth trajectory.

 

Source: CNBC TV18, NDTV Profit, UPL Annual Report