UPL Eyes Growth With New Product Launches in 2025-26

UPL Ltd. on Monday said that new product launches will drive the growth of its India business in 2025-26.The company has a very positive outlook for 2025-26 in the domestic market, its management told reporters during a post-earnings press conference.

The India business contributes around 13% to its overall revenues, while the US business makes up about 15%. UPL expects to benefit from the ongoing tariff turmoil in the US. "We are used to volatility in currency and raw material prices," said CEO Jai Shroff, adding that the current uncertainty in global markets is expected to create tailwinds for the company.

UPL reported its earnings on Monday during market hours, posting a consolidated net profit of ₹8.96 billion on revenues of ₹155.73 billion. The agrochemical company reported a net debt of ₹138.6 billion as of March 31, down ₹83.2 billion from the previous year. For the March quarter, earnings before interest, tax, depreciation, and amortisation (EBITDA) were ₹32.4 billion, up 68% year-on-year.

The company’s current net debt is 1.7 times EBITDA. While deleveraging remains a key focus, the company is content to sustain its net debt at 1.5-1.7 times EBITDA.

UPL plans to launch over 25 new products in 2025-26, with expected revenue of $130 million through its global crop protection business, UPL Corp. The company had launched more than 200 new products in 2024-25, generating around $93 million. 

Approximately 75% of UPL’s revenue comes from global operations, and the company will continue focusing its R&D efforts on higher-value segments, such as differentiated and natural plant protection, where margins are higher. In the coming years, UPL plans to ramp up launches to products that will generate over $200 million.

The company has budgeted $225 million for capital expenditure in 2025-26. In 2024-25, capital expenditure was budgeted at ₹18 billion, or around $212 million.

On its seeds business, UPL’s management said it is growing at almost 15% per year and will continue to expand, gaining market share and improving profitability. Revenue from the seeds business for the March quarter was ₹15.45 billion, up nearly 37% year-on-year, contributing around 10% to the company’s consolidated revenue for the quarter. Regarding its subsidiary, Advanta Enterprises Ltd., the company said the next step would be an initial public offering.