UPL reports ₹88 crore loss in Q1, down from ₹384 crore last year

3 Aug 2025 , 08:21 PM

UPL Ltd shares closed over 6% lower on Friday, August 1, even as the agrochemical major reported a narrowed net loss for the June quarter of FY26, signaling an improvement in operating performance.

The company posted a consolidated net loss of ₹88 crore for Q1FY26. This is significantly down from the ₹384 crore loss it reported in the year-ago period. Despite the improvement, the market reacted negatively.

Total impairment costs rose sharply to ₹192 crore during the quarter, up from ₹87 crore in the same period last year. A large portion of this was due to a non-cash loss of ₹112 crore stemming from client receivables being reclassified as credit-impaired assets.

On the operational front, EBITDA rose to ₹1,303 crore, exceeding last year’s figure of ₹1,146 crore. EBITDA margin improved to 14%, up from 12.6% a year earlier.

The company has retained its full-year revenue growth guidance at 4% to 8%. EBITDA growth is projected to remain in the 10% to 14% range. This is suggesting continued focus on profitability and cost control.

As per its investor presentation, UPL’s net debt declined by over ₹6,000 crore year-on-year. This is falling to ₹21,371 crore as of June 2025 from ₹27,500 crore a year ago. However, this marks a steep rise compared to ₹13,858 crore in the March 2025 quarter.

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