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Broad-based growth drives operating performance

* UPL Ltd (UPLL) posted a strong 1Q operating performance, with EBITDA growing 23% YoY to INR16.1b, driven by price increases and a better product mix. EBITDA growth in UPL Corp/Advanta/UPL SAS stood at 38%/24%/34% YoY.

* Further, improving pricing discipline, increasing contribution from highermargin businesses, healthy volume-led growth in global crop protection, healthy performance from Advanta & Superform, and disciplined cost management are expected to be key growth drivers for the company.

* We largely maintain our FY27/FY28 earnings estimates and reiterate our Neutral rating on the stock with a TP of INR600 (premised on a 12x P/E, i.e., at a 45% discount to the five-year avg. P/E).

Margin expansion offsets weather-led volume softness

* UPLL reported revenue of INR101.8b (est. in-line) in 1QFY27, up 10.5% YoY (volume down: -3%, price growth: 3%, forex up: 10%). EBITDA stood at INR16.1b (est. INR15.1b), up 23% YoY. EBITDA margin stood at 15.8% (up 160bp). Adj PAT came at INR1.6b (est. loss of INR144m) in 1QFY27, up 65% YoY (PAT is adjusted for exchange differences and extraordinary items such as restructuring costs).

* Net debt was INR236b as of Jun’26 vs. INR213.7b/INaR153b as of jun’25/Mar’26.

* India’s revenue grew 15% YoY to INR26b, with pricing gains offsetting monsoon-related volume softness. North America’s revenue grew 18% YoY to INR15.8b, led by herbicides, fungicides, post-harvest, and aquatic businesses. LATAM’s revenue grew 8% to INR26b, driven by Brazil, while Argentina remained weak. The European business grew 4% YoY to INR16b, supported by favorable currency movements and disciplined pricing actions, while the RoW business grew 7% to INR18b, led by Indonesia and South Asia.

* Advanta’s revenue increased 26% YoY to INR17.5b, driven by corn sales in India, Indonesia, and Latin America. In addition, the rice business in India and post-harvest business in the US also contributed meaningfully. UPL Corp’s revenue grew 7% YoY to INR63.7b, driven by NAM and LATAM (up 18%/8% YoY). UPLL’s SAS revenue remained flat YoY in 1QFY27 at INR114b. SUPERFORM’s revenue grew 14% YoY to INR29.2b, while the Specialty Chemicals business grew 51% YoY.

* Net working capital days increased to 110 in 1QFY26 primarily due to inventory and receivable build-up (vs. 86 days in 1QFY25). The CFO stood at negative INR26.9b in 1QFY27 vs. INR62b in 1QFY25.

Valuation and view

* UPLL delivered a healthy start to FY27, driven by broad-based growth across geographies and business platforms, with EBITDA growth outpacing revenue growth on the back of strategic pricing actions, favorable product mix and operational efficiencies. While weather-related disruptions hit volumes in certain regions, improving demand trends, market share gains, and a healthier pricing environment supported the overall business momentum.

* We believe UPLL is increasingly benefiting from its diversified business model, with growing contributions from Advanta, Superform, and Sustainable Solutions reducing dependence on the cyclical crop protection business. Supported by a stronger innovation pipeline, continued portfolio premiumization, and ongoing deleveraging efforts.

* We expect the revenue/EBITDA/Adj. PAT to clock 8%/9%/28% CAGR over FY26- 28E. We reiterate our Neutral rating on the stock with a TP of INR600.

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