UPL Ltd Q2 FY27 Results Analysis: Revenue Slips 1.32%, EBITDA Margin Expands 190 bps

Cofacto Research Published November 02, 2026 4 min read

Negative

UPL Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 11,860.00 Cr (-1.32% YoY) and PAT growth of -26.14% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	November 02, 2026
Revenue (Q2)	Rs. 11,860.00 Cr (-1.32% YoY)
PAT (Q2)	Rs. 452.00 Cr (-26.14% YoY)
EBITDA margin	18.55% (+190 bps YoY)
EPS (Q2)	Rs. 4.99 (-26.07% YoY)

Quarter Snapshot

Q2 FY27 revenue declined 1.32% YoY, falling short of the company's 7-11% FY27 guidance, while EBITDA margin expanded 190 bps to 18.55% on cost discipline and mix shift toward Seeds and Non Agro. Cash flow quality deteriorated with CFO at -Rs.9,587 Cr and Debt/Equity rising to 0.79x, making H2 working capital normalization and a required +12.6% H2 revenue acceleration critical to the investment case.

Management Guidance vs Delivery

What management said	Where	What happened	Verdict
FY27 Revenue growth 7-11%	Notes §4	H1 FY27: +3.79% YoY — Needs H2 +12.6% YoY to meet mid-point	Behind
FY27 EBITDA growth 10-14%	Notes §4	H1 FY27: +10.6% YoY (computed from TTM) — at low end of range	On track
Deleveraging trajectory "fully intact"	Notes §4, §5	Net Debt/EBITDA: 3.02x vs 2.4x in Q1 FY27 — H2 normalization needed	Seasonal deterioration
Q1 FY27 Revenue growth 10-14%	Notes §4	Actual: +10% — at low end	Met
Q1 FY27 EBITDA growth 14-18%	Notes §4	Actual: +15% — within range	Met
Hytech Egypt completion by Jan 31, 2027	Notes §9	Acquisition announced Aug 15, 2026; pending approvals — awaiting regulatory clearance	On track
Advanta IPO	Notes §3	SEBI approval received — awaiting launch details	On track
"Strongest Q1 revenue and EBITDA growth in past four years"	Notes §5	Q2 FY27 Revenue -1.32% YoY; EBITDA +9.95% YoY — Q2 momentum faded on revenue	Partially contradicted
"Seventh consecutive quarter of revenue and EBITDA growth"	Notes §5	H1 revenue +3.79% YoY; EBITDA +10.6% — growth continued	Confirmed
"Structural, contribution-led margin expansion for seventh consecutive quarter"	Notes §5	Segment Result margin 15.00% vs 12.97% YoY (+203 bps)	Confirmed

Key Numbers, Quarter by Quarter

Metric	Q3 FY26	Q4 FY26	Q1 FY27	Q2 FY27	Trend
Revenue (Rs. Cr)	12,269	18,335	10,181	11,860	Seasonal peak in Q4; Q2 +16.5% QoQ
EBITDA Margin	19.8%	~20%	14.7%	18.55%	Strong seasonal Q2 margin recovery
Segment Result Margin	12.97%	~14.5%	~10.8%	15.00%	Expanding margin trajectory
Net Debt/EBITDA	2.5x	<1.6x	2.4x	3.02x	Seasonal deterioration — needs H2 reversal

Key Investment Insights

Key Positives

EBITDA grew 9.95% YoY to Rs.2,200 Cr with margin expansion of 190 bps to 18.55% despite revenue decline of 1.32%
Crop Protection segment margin expanded 201 bps to 13.44% with segment results up 9.08% YoY despite 7.21% revenue decline
Seeds & Post Harvest revenue grew 10.86% YoY with segment results up 24.63% and margin expanding 252 bps to 22.87%
Non Agro revenue grew 61.83% YoY with specialty chemicals up 51% YoY and 17% volume growth
Seventh consecutive quarter of margin expansion with segment result margin at 15.00% vs 12.97% YoY
Employee costs declined 15.42% YoY, contributing 174 bps of operating leverage
Capex contained at Rs.798 Cr vs Rs.989 Cr YoY
Impairment loss on financial assets declined 37.72% YoY to Rs.71 Cr

Risk Factors

Revenue declined 1.32% YoY, well short of the 7-11% FY27 guidance; H2 needs +12.6% YoY growth to meet mid-point
CFO was negative Rs.9,587 Cr vs -Rs.4,811 Cr YoY with CFO/PAT ratio of -25.3x
Debt/Equity rose from 0.53x to 0.79x with Net Debt/EBITDA at 3.02x vs 2.4x in Q1 FY27
PAT to owners declined 23.87% YoY; normalized PAT declined 16.2% YoY
Raw material costs rose 7.79% YoY against revenue decline of 1.32%, compressing gross margin by 471 bps
FX losses rose 339% YoY to Rs.136 Cr from West Asia tensions and emerging market depreciation