UPL Shares Surge 7% as Management Reaffirms FY26 Guidance Despite Weak Q1

Shares of agrochemical major UPL jumped 7 percent to ₹715 apiece on August 4, after the company’s management reaffirmed its FY26 guidance, instilling investor confidence despite a subdued performance in the June quarter. This optimism prompted several brokerages to maintain or raise their bullish stance on the stock. In Q1 FY26, UPL reported a net loss of ₹88 crore, a significant improvement from the ₹384 crore loss recorded in the same quarter last year. Revenue from operations grew 1.6 percent YoY to ₹9,216 crore, while EBITDA rose to ₹1,303 crore, up from ₹1,145 crore. The EBITDA margin improved to 14.1%, compared to 12.6% a year ago, reflecting early signs of operational recovery, even though topline growth remained modest. Investor sentiment improved as UPL stuck to its medium-term outlook, guiding for FY26 revenue growth of 4–9 percent and EBITDA growth of 10–14 percent. The company also expects to generate an additional $130 million in revenue in H2 FY26 from new molecule launches, while keeping acquisitions under evaluation and focusing on deleveraging. The full-year tax rate is projected to remain between 15–17 percent, depending on the product mix and capex execution. Brokerage Reactions: Nuvama Institutional Equities raised its target price from ₹781 to ₹808, citing confidence in UPL’s guidance and suggesting that the worst of the inventory and pricing pressures may be over. Antique Stock Broking retained its buy rating, increasing its target to ₹730 from ₹710, highlighting the positive impact of planned price hikes in key products. Motilal Oswal maintained a neutral rating with a target of ₹700, but noted that UPL is well-positioned to accelerate growth in H2 FY26 through its Super Specialty Chemicals division, new product introductions, and deeper market reach via Advanta. Despite a shaky start to the year, UPL’s strategic clarity and forward-looking guidance have reignited investor interest, potentially marking the beginning of a turnaround.