UPL EBITDA rises 5% as Q2 reported PATMI drops 24%

UPL Limited increased Q2FY27 earnings before interest, tax, depreciation and amortisation (EBITDA) 5% to Rs 2,312 crore, although revenue declined 1% to Rs 11,860 crore. EBITDA margin rose 120 basis points to 19.5%, but reported PATMI fell 24% to Rs 421 crore as finance costs, depreciation and losses from associates and joint ventures increased.

Why did UPL EBITDA rise while Q2 revenue fell?

UPL raised Q2FY27 EBITDA because contribution increased 1% to Rs 5,087 crore while selling, general and administrative expenses (SG&A) declined 2% to Rs 2,775 crore. Contribution margin rose to 42.9% from 41.9% in Q2FY26, and EBITDA margin increased to 19.5% from 18.3%, despite revenue falling from Rs 12,019 crore to Rs 11,860 crore.

The revenue decline reflected a 10% fall in volume, flat pricing and a 9% favourable foreign-exchange effect. In H1FY27, or the first half of FY27, revenue increased 4% to Rs 22,041 crore, with a 1% pricing gain and a 9% foreign-exchange benefit offsetting a 6% volume decline. First-half contribution increased 7% to Rs 9,693 crore and EBITDA rose 9% to Rs 3,812 crore.

UPL’s Q2FY27 contribution margin was higher year on year for the eighth consecutive quarter in the presentation’s series, which begins at Q3FY25. EBITDA was Rs 2,312 crore in Q2FY27 compared with Rs 2,205 crore a year earlier, while management attributed the operating result to margin accretion and cost optimisation amid macro headwinds.

Which UPL platforms offset the crop-protection decline?

UPL’s Advanta and SUPERFORM SSC platforms offset part of the 8% Q2 revenue decline at UPL Corp. Advanta revenue rose 12% to Rs 1,875 crore and SUPERFORM SSC revenue increased 50% to Rs 1,047 crore, whereas UPL Corp revenue declined from Rs 8,625 crore to Rs 7,972 crore.

Advanta’s growth came from sunflower, grain sorghum and field corn in Latin America and Indonesia, as well as post-harvest growth in the United States, Latin America and South Africa. Its Q2 EBITDA increased 19% to Rs 510 crore and its margin rose to 27% from 26%; UPL linked the margin movement to corn and sunflower. The presentation says Advanta revenue variances apply to seeds only.

SUPERFORM SSC reported volume growth of 33% and pricing growth of 17%, with contract manufacturing organisation lubricants and new-product commercialisation identified as revenue drivers. EBITDA increased 73% to Rs 197 crore and margin rose to 19% from 16%, which UPL attributed to price increases and a better product mix.

UPL Corp EBITDA declined 14% to Rs 1,083 crore and its margin fell to 14% from 15%, with regional and product mix affecting the outcome. SUPERFORM AI revenue rose 21% to Rs 2,532 crore after a 28% price increase, but its EBITDA declined 5% to Rs 254 crore because of lower volumes.

How did regions shape UPL’s Q2 revenue result?

UPL’s Q2 revenue decline was concentrated in Latin America, Europe and India, while North America and the rest of the world (ROW) each grew 19%. Latin America revenue fell 8% to Rs 5,214 crore, Europe declined 12% to Rs 1,209 crore and India decreased 9% to Rs 1,509 crore; North America reached Rs 1,079 crore and ROW Rs 2,849 crore.

Latin America reduced Q2 revenue by Rs 480 crore from Q2FY26, the largest regional decline, while ROW added Rs 462 crore. UPL cited unfavourable rains affecting Brazilian fungicide volumes and herbicide volumes elsewhere in Latin America. A European heatwave affected fungicides and Acephate, reducing regional revenue by Rs 162 crore.

North American growth reflected volume gains from new differentiated-portfolio brand launches. In India, dry spells affected crop protection and seeds, although hyperscale brands and specialty chemicals grew, leaving a Rs 151 crore regional reduction. In H1FY27, India revenue increased 5% to Rs 4,112 crore, while North America rose 19% to Rs 2,660 crore and ROW increased 14% to Rs 4,646 crore.

Why did UPL reported PATMI fall 24%?

UPL’s reported PATMI declined because gains in EBITDA were exceeded by higher net finance costs, depreciation and amortisation, and losses from associates and joint ventures. PATMI fell to Rs 421 crore in Q2FY27 from Rs 553 crore in Q2FY26, while profit before tax declined 22% to Rs 615 crore and profit after tax fell 26% to Rs 452 crore.

Net finance costs increased 18% to Rs 612 crore, depreciation and amortisation rose 6% to Rs 818 crore, and the share of loss from associates and joint ventures rose to Rs 132 crore from Rs 54 crore. UPL’s operational PATMI bridge attributes Rs 94 crore of the year-on-year reduction to net finance costs and Rs 78 crore to associates and joint ventures, mainly losses in Brazilian AI and joint ventures.

Operational PATMI increased 3% to Rs 422 crore from Rs 411 crore. The bridge recorded a Rs 107 crore EBITDA benefit and a Rs 100 crore other-income benefit, partly offset by Rs 47 crore of depreciation and amortisation and Rs 12 crore of foreign-exchange or hedging costs. UPL said foreign-exchange translation increased both finance costs and hedging costs.

For H1FY27, reported PATMI declined 7% to Rs 431 crore, while operational PATMI increased 33% to Rs 441 crore. EBITDA added Rs 305 crore in the first-half operational bridge, but associates and joint ventures reduced it by Rs 180 crore, showing the difference between operating progress and reported earnings.

What changed in UPL working capital and debt?

UPL reported higher working-capital use and net debt at September 2026 than at September 2025. Net working-capital days rose to 145 from 118, while working capital reached $2.2 billion, up $445 million year on year on a trailing-12-month basis.

Net debt was $2,993 million at September 2026, up $312 million year on year, and net debt to EBITDA was 2.9 times compared with 2.7 times at September 2025. UPL said higher inventory was the principal reason for the working-capital increase.

Short-term debt was Rs 21,789 crore at September 2026, compared with Rs 11,353 crore a year earlier, while long-term debt declined to Rs 10,926 crore from Rs 17,209 crore. Cash and bank balances, including current investments, fell to Rs 4,030 crore from Rs 4,760 crore, which UPL attributed to working-capital utilisation and higher investments.

Conclusion

UPL delivered higher Q2FY27 EBITDA and wider margins despite a 1% revenue decline, as contribution gains and lower SG&A offset weaker volumes. Growth at Advanta and SUPERFORM SSC partly countered lower UPL Corp revenue, but higher finance costs and associate and joint-venture losses reduced reported PATMI by Rs 132 crore.

The next areas to watch are working capital, which reached $2.2 billion at September 2026, and refinancing actions. UPL disclosed prepayment of a $500 million term loan due in December 2026 and refinancing of $400 million to FY32, while Advanta agreed to acquire 99.98% of Misr Hytech Seed International in Egypt for about $110 million.