Q2 2026 UPL Ltd Earnings Call Transcript
Key Points
- UPL Ltd (LSE:UPLL) reported a strong 8% revenue growth in Q2 FY26, driven by a 7% increase in volume and favorable exchange impacts.
- The company's EBITDA increased by 40% year-on-year, with a margin improvement of 410 basis points, reflecting robust financial management.
- UPL Ltd's net debt reduced significantly by $605 million compared to the previous year, showcasing effective capital management.
- The company achieved a 21% increase in contribution margin, driven by improved product mix and lower input costs.
- UPL Ltd's Advanta seed business reported a strong 26% growth, fueled by robust volume expansion in key markets like India and Latin America.
- The India crop production business faced a 10% revenue decline due to unfavorable weather conditions, impacting overall performance.
- There was a notable increase in SG&A expenses by 9% year-on-year, which could pressure profitability if not managed effectively.
- The insecticides portfolio experienced competitive pressure, leading to price erosion in Brazil, particularly affecting the premium Sperto brand.
- UPL Ltd's net working capital days increased, indicating potential inefficiencies in inventory and receivables management.
- The company faced a $30 million ECL in the first half, up from $23 million last year, reflecting ongoing challenges in credit risk management.
Ladies and gentlemen, good day and welcome to UPL Limited Q2 FY 2026 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing then 0 on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Andra Gupta.
Thank you and over to you, Mr. Gupta.
Thank you, Rinju.
Good evening everyone. I am Anurag Gupta, head of Investor relations at UPL.
On behalf of the UPL management team, I thank you for joining us today for discussing the financial performance for Q2 and H1F526.
The investor presentation, press release, and the financial statements have been made available on our website, and we take it that you have read the Safe harbor statement.
From the management team, we have with us today, Group
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