UPL Shares Price Drops 5% Despite Posting Strong Q4FY25 Results

UPL Shares Drop: The shares of agrochemical manufacturer UPL Ltd. witnessed an over 5 per cent decline to hit an intraday low of Rs 640.5 on May 13, 2025, a day after the company posted its quarter ended March, 2025 results. At 1:47pm on Tuesday, the shares of UPL Ltd were trading at 5.15 per cent lower at Rs 641.10. on Bombay Stock Exchange (BSE).

While majorly brokerage firms are backing the buy call for the Bombay-headquartered agrochemical firm, uncertainty over its bullish or bearish foreseeable future still prevails.

UPL's Q4 FY25 Result

In the quarter four of fiscal year 2025, UPL Ltd., formerly United Phosphorus Limited, posted a 16 per cent rise in year-on-year revenue in comparison to Rs 14,078 in the year-ago period. The firm's earnings before interest, tax, depreciation and amortisation (EBITDA) grew 68 per cent to Rs 3,240 crore compared to Rs 1,930 crore in the corresponding quarter of the previous fiscal.

Further, the company reported a net profit of Rs 896 crore, significantly higher than Rs 40 crore in the year-ago period. UPL's net debt nosedived by Rs 8,320 crore to Rs 13,860 crore on the back of a strong operating cash flow of Rs 4,450 crore and proceeds from two capital transactions. 

The management guided 4–8 per cent revenue growth and 10-14 per cent EBITDA growth in FY26, driven by higher volumes and an improved product mix. However, this guidance disappointed investors and analysts, who were hoping for a stronger recovery following a volatile operating environment over the past year. UPL announced plans to launch new products worth over USD 130 million in FY26.

The board of directors of the company recommended a final dividend of Rs 6 per equity share for fiscal year 2025.

Currently, UPL is the fifth largest agrochemical company in the world, boasting of an integrated portfolio of crop protection solutions & biosolutions. It manufactures and markets agrochemicals, industrial chemicals, chemical intermediates, speciality chemicals and pesticides.