Shares of UPL Ltd. surged as much as 8% on Tuesday, February 3, following the company's strong December quarter performance. According to reports from CNBC TV18, the agrochemicals major delivered Q3 results that came in well ahead of estimates, driving brokerages to raise their target prices despite maintaining mixed ratings.
Kotak Institutional Equities retained its 'Sell' rating but raised its target price to ₹630 per share. As reported by CNBC TV18, the brokerage noted that while operating performance in Q3 beat expectations, below-the-line items were weaker. Investec maintained a 'Buy' rating and raised its target price to ₹975 per share, citing Q3 EBITDA growth of 13% year-on-year, about 12% above estimates.
According to CNBC TV18, UPL reported revenue growth of 12% in Q3, well above the estimated 5%, driven by higher volumes, particularly in the Advanta business, and supported by favourable foreign exchange. EBITDA grew 13% against expectations of flat growth, aided by an improved product mix, higher capacity utilisation and lower input costs. The company's net debt stood at ₹23,317 crore, down ₹2,553 crore year-on-year.
As reported by CNBC TV18, growth was led by Europe, up 21%, and Rest of the World, up 32%, with continued momentum in India and the Americas. The Americas growth remained muted at 3% year-on-year as the company deferred shipments worth $30 million in anticipation of a trade deal. To mitigate tariff-related risks, the company has implemented price hikes and is restructuring its supply chain by shifting from importing formulated products to importing technicals.
According to CNBC TV18, the company maintained its FY26 guidance of 4-8% revenue growth and 12-16% EBITDA growth. Management expressed confidence in delivering growth in Q4 despite a high base and expects net debt to EBITDA to decline to 1.6-1.8x in FY26, compared with 2.1x in FY25. Among platforms, Advanta delivered strong growth of 22%, the crop protection segment rose 8% on higher volumes, while specialty chemicals surged 42%.
