UPL Q2 net loss widens 2.3x to Rs 443 crore due to high expense, tax; stock falls 8%

UPL Ltd Q2 FY25 Results

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26 Aug, 2025 12:21

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UPL Ltd reported a net loss of Rs 443 crore for the second quarter of FY25, widening more than 2.3 times from the previous year, as higher expenses and tax payments weighed on the company’s financials, sending its stock price tumbling nearly 8.5 percent to Rs 510 on the NSE.

Revenue from operations rose 9 percent to Rs 11,090 crore, driven by a 16 percent increase in volumes despite a 7 percent decline in price and flat currency exchange effects.

UPL share price fell to the day's low Rs 510 on NSE after the weak Q2 earnings show, before ending at Rs 513.3, down 8 percent from the previous close.

Operating performance pressures

UPL’s contribution margin for the quarter compressed by 220 basis points to 37.7 percent due to pricing pressure, particularly in the crop protection segment, the company said in a filing to the stock exchanges. The company's EBITDA remained nearly flat at Rs 1,576 crore, with a 130 basis point drop in EBITDA margin to 14.2 percent.

The seeds business showed margin-accretive growth, supported by favourable pricing in grain sorghum and corn, a trend the company expects to yield positive results in the second half of the year.

Geographically, UPL's revenue growth was strongest in the Rest of the World and North America, which saw increases of 29 percent and 10 percent, respectively. India’s revenue rose 13 percent, while Latin America remained flat, and Europe posted an 8 percent gain.

Outlook and strategic adjustments

Jai Shroff, Chairman and Group CEO, highlighted the strong global demand, particularly in the fungicide segment led by mancozeb, as well as robust performance in the company’s bio-solutions business. He also said the company would enforce stricter credit and inventory norms to enhance cash flows.

Mike Frank, CEO of UPL Corporation Ltd., added that the fundamentals in the global crop protection market remain strong, with strong dealer and farmgate demand contributing to UPL’s 13 percent volume growth.

UPL share price performance

UPL’s stock is now down 7 percent over the last year, reducing its market capitalisation to nearly Rs 39,000 crore. However, the company remains optimistic about the second half of the fiscal year, with an expectation of accretive margins and improved cash generation through optimised inventory management.