UPL Limited: Comprehensive Stock Analysis Report | Scrolls
- Editor
- Oct 27
- 3 min read
by KarNivesh | 27 October, 2025
UPL Limited, India’s largest agrochemical company and the world’s fifth-largest crop protection firm, operates across 140+ countries with annual revenues exceeding ₹46,000 crore. Founded as United Phosphorus Limited, it has evolved into a global leader in sustainable agricultural solutions. With a market capitalization of ₹57,436 crore and stock price of ₹674.15 (as of October 2025), UPL continues to dominate the crop protection industry through a diversified business model and global presence.
Business Segments and Operations: UPL operates through four major platforms: Global Crop Protection (61% of revenue), India Crop Protection (10%), Seeds Business (8%), and Specialty Chemicals (19%). Its Global Crop Protection division contributes the majority of revenue, with a strong foothold in herbicides, fungicides, and biosolutions. The Seeds division under Advanta Enterprises showcases robust growth, driven by R&D-backed climate-smart hybrids, while the Specialty Chemicals unit supports both internal production and 600+ B2B clients globally.
Recent Developments: FY2025 marked a recovery phase for UPL following industry-wide destocking pressures in FY2024. The company raised ₹4,700 crore through a rights issue, reduced net debt by ₹8,300 crore to ₹13,860 crore, and invested ₹189 crore (converted from $22.7 million) in Brazil’s Origeo to strengthen its Latin American presence. It also acquired a 49% stake in Thailand’s Grow Chemical for ₹6.3 crore (converted from $0.76 million). Despite these positives, the company reported a net loss of ₹443 crore in Q2 FY2025 due to pricing pressure from Chinese competitors.
Industry Outlook: The Indian agrochemical market is projected to expand from ₹86,211 crore in 2024 to ₹1,21,365 crore by FY2028, registering a 9% CAGR. Growth drivers include government incentives through the PLI scheme, rising exports, and increasing adoption of precision agriculture. With India’s low per-hectare agrochemical usage compared to global averages, UPL is well-positioned to capitalize on long-term demand.
Financial Performance: After a challenging FY2024 with a 19.5% revenue decline to ₹43,098 crore, UPL’s revenues rebounded to ₹46,640 crore in FY2025. EBITDA improved to ₹8,120 crore with a margin recovery from 12.8% to 17.4%, while PAT turned positive at ₹900 crore. Improved working capital management-reducing the cycle from 86 to 53 days-freed up nearly ₹4,000 crore in cash, further aiding debt reduction.
Valuation and Ratios: UPL trades at a P/E of 36.06x and P/B of 1.97x, suggesting fair valuation relative to peers like PI Industries and Bayer CropScience. With a debt-to-equity ratio of 0.81x and Net Debt/EBITDA of 2.6x, its balance sheet is considerably stronger. The company reinstated its dividend at ₹6 per share, signaling renewed financial confidence.
Governance and Sustainability: UPL’s governance framework features strong independent representation and professional leadership under Chairman & CEO Jai Shroff. The company has achieved 34% carbon emission reduction, 47% water conservation, and 30% renewable energy usage, earning global recognition through the Clarivate Innovation Award and DJSI sustainability ranking in the top 1% globally.
Conclusion: UPL stands at a crucial inflection point-recovering from a downturn with improved profitability, a stronger balance sheet, and renewed strategic focus. With leadership in India’s agrochemical sector, expanding global presence, and innovations in biosolutions and digital farming, the company is poised for sustainable growth. However, low ROE (4.78%), competitive pricing from China, and high volatility (30%) remain key risks. At ₹674, the stock appears fairly valued, offering moderate upside potential aligned with its ongoing turnaround trajectory.
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