Mid-Cap Agrochemical Stock in Focus: UPL Ltd Rallies Over 30 Per Cent in 2025, Outshining Bearish Market Trend

UPL Ltd Gains Momentum as Subsidiary Expands Investment in Brazil Joint Venture

UPL Ltd shares surged nearly 2 per cent on Tuesday to Rs 657.5 following its latest announcement regarding additional investment in Origeo Comercio de Produtos Agropecuarios S.A., a joint venture in Brazil. This comes after its step-down subsidiary, UPL Global Ltd, UK, made further investments to support Origeo's working capital needs and long-term growth.

Established on July 29, 2021, Origeo provides integrated agricultural solutions, including inputs, services, financing, and technical support for Brazilian farmers. This joint venture between UPL and global agribusiness leader Bunge strengthens UPL’s strategic position in the Latin American market.

UPL confirmed the transaction as a related party investment, executed through UPL Global, requiring no additional regulatory approvals.

After two consecutive quarters of losses, UPL Ltd reported a solid profit in Q3FY25, driven by increased demand for agrochemical products, cost reductions, and favourable monsoon conditions.

• Net Profit: Rs 828 crore in Q3FY25, a sharp turnaround from a loss of Rs 1,217 crore in Q3FY24.
• Revenue Growth: 10.3 per cent Y-o-Y rises to Rs 10,907 crore from Rs 9,887 crore in Q3FY24.
• Ebitda Surge: 420 per cent Y-o-Y increase to Rs 2,163 crore from Rs 416 crore in Q3FY24.
• Ebitda Margin Expansion: Jumped 1,560 basis points to 19.8 per cent from 4.2 per cent a year ago.

Growth drivers included a 9 per cent increase in volumes, a 5 per cent rise in pricing, and a 4 per cent negative impact from forex fluctuations, particularly in Brazil.

The Union Budget 2025 provided a strong push to the agriculture sector with the launch of the ‘Prime Minister Dhan-Dhaanya Krishi Yojana.’ This initiative, targeting 100 districts with lower productivity, aims to:

• Improve agricultural output and crop diversification.
• Enhance irrigation facilities and post-harvest storage.
• Increase access to long-term and short-term credit.

With a projected impact on 1.7 crore farmers, this initiative is expected to indirectly benefit companies like UPL, which is engaged in agrochemical solutions.

UPL Ltd is a leading global provider of sustainable agricultural products and solutions, boasting annual revenue exceeding $5 billion. The company operates in over 130 countries with a more than 12,000 professional workforce. As of 11:50 AM, UPL Ltd’s market capitalisation at Rs 48,827 crore, with the stock trading at Rs 651.60. UPL Ltd has delivered an impressive 30.19 per cent gain in 2025, significantly outperforming the broader market’s bearish trend.

Disclaimer: This article is for informational purposes only and should not be considered investment advice.