UPL Ltd saw its stock rise on August 4, breaking a 5 session decline, as investors responded to the company’s steady forward guidance and improving financial metrics despite subdued Q1 FY26 results.
The agrochemicals major posted a consolidated net loss of ₹88 crore for the June quarter an improvement from the ₹384 crore loss reported during the same period last year. This narrowing of losses came amid ongoing challenges in global crop protection markets, cost pressures, and elevated impairment expenses.
According to market reports, planned price increases in select products could support margin recovery in the coming quarters.
Channel inventory levels have reportedly returned to normal, and the company noted in its earnings call that restocking is progressing in line with expectations driven by demand recovery.
The overall market response appears to be factoring in the company’s reaffirmed guidance and signs of operational stability, the reports added.
UPL’s Q1 performance reflected a challenging macro environment. Despite that, the company maintained its revenue growth guidance for FY26 at 4% to 8% and EBITDA growth at 10% to 14%, signalling confidence in demand recovery and operational momentum in the latter half of the year.
Management noted that growth this year is likely to be back-ended, with the second half expected to deliver stronger results.
UPL’s impairment costs jumped to ₹192 crore during Q1, compared to ₹87 crore in the same quarter last year.
This includes a ₹112 crore non-cash loss linked to a client in Brazil. Despite this, the company continues to focus on balance sheet improvement and has highlighted deleveraging as a key medium-term priority.
UPL Limited shares were trading at ₹709.15, marking a sharp rise of ₹44 or 6.62% from the previous close of ₹665.15. The stock opened higher at ₹673.50 and surged to an intraday high of ₹715.70, while touching a low of ₹672.05 earlier in the session.
The volume-weighted average price (VWAP) stood at ₹705.49, indicating sustained buying interest throughout the morning.
While UPL’s Q1 results reflected ongoing market headwinds, the stock's recovery on August 4 suggests that investors are taking note of its steady full-year guidance, operational updates, and margin improvement measures. The near-term outlook remains linked to demand trends, cost dynamics, and execution of strategic initiatives in the upcoming quarters.
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Published on: Aug 4, 2025, 12:52 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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