The shares of agrochemical manufacturing gained up to 1 percent after HDFC Mutual Funds and ACM Global Fund acquired 9.84 lakh equity shares in the company.
With a market capitalization of Rs 48,135.16 crore, the shares of UPL Limited were trading at Rs 561.10 per share, increasing around 0.45 percent as compared to the previous closing price of Rs 558.60 apiece.
Reason for Rise:-
The shares of the company have seen positive movement after HDFC Mutual Fund acquired 4.84 lakh equity shares, equivalent to a 0.6% stake in UPL at an average price of Rs 192.88 per share, while ACM Global Fund VCC purchased 5 lakh equity shares which represent 0.66% stake in the company at an average price of Rs 194.47 per share.
Financial condition & revenue split:-
Looking forward to the company’s financial performance, revenue increased by 9 percent from Rs 10,170 crore in Q1FY24 to Rs 11,090 crore in Q1FY25, during the same period, net loss magnified from Rs 293 crore to Rs 585 crore.
Business Insight:-
UPL Corp’s Q2 revenue rose 4% YoY, driven by strong fungicide volumes in LATAM and Europe, despite insecticide price erosion in Brazil. NPP BioSolutions grew 10% YoY on biocontrol and nutrient demand. Market fundamentals show normalized ordering but price pressures persist amid Chinese overcapacity.
Margin Guidance and Future Outlook:-
UPL expects margin gains in Q3 and FY25, supported by stable active ingredient prices, lower input costs, and market share growth. FY25 guidance includes 4-8% revenue growth and over 50% EBITDA growth, driven by lower-cost inventory and rising sales of differentiated products.
New Development:-
UPL SAS India reported ₹1,013 crore in revenues, up 20% YoY, driven by herbicides and new molecules. Advanta Seeds’ Q2 revenue grew 4% on grain sorghum and corn. UPL focuses on cash generation, working capital optimization, and new launches targeting $85 million in additional revenue.
Ratio Analysis:-
The company’s profitability measures show a decline in return on equity (RoE) from 13.29 percent in FY 22-23 to (4.83) percent in FY 23-24, while, during the same period return on capital employed (RoCE) decreased from 13.64 percent to 3.72 percent. In contrast, the net profit margin (NPM) was (3.79) percent in fiscal year 23-24.
Company Profile:-
UPL Limited is engaged in the agro-business of production and sale of agrochemicals, field crops, and vegetable seeds, and non-agro-business of production and sale of industrial chemicals, chemical intermediates, and specialty chemicals.
Written by:- Abhishek Singh
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