Neutral UPL; target of Rs 700: Motilal Oswal

Motilal Oswal's research report on UPL

UPL Ltd (UPLL) made a decent start to FY26, with EBITDA growing 14% YoY to INR13b, led by a better product mix (EBITDA margin up 150bp YoY), higher capacity utilization, and lower COGS (gross margins up 460bp YoY), despite revenue growth of 2% to INR92b. Pricing pressure persists globally. However, UPLL remains on track to accelerate growth from 2HFY26 onwards, driven by strong prospects in the Super Specialty Chemicals (SSC) segment (within Superform), new product launches, and increased investments by Advanta (for new market entries). We maintain our FY26/FY27 earnings estimates and reiterate Neutral with a TP of INR700.

Outlook

We expect revenue/EBITDA/Adj. PAT CAGR of 7%/13%/53% over FY25-27. We reiterate Neutral with a TP of INR700 (based on 12x FY27 EPS).