UPL shares jump 7% after Q1 loss narrows to Rs 176 crore. Should you stay invested?

UPL shares surged 7% to Rs 711.80 on Monday after the company reported a narrower consolidated net loss of Rs 176 crore for Q1FY26, compared to a loss of Rs 527 crore in the same period last year.

Consolidated total income rose to Rs 9,359 crore from Rs 9,165 crore a year ago. However, total expenses also inched up to Rs 9,558 crore from Rs 9,539 crore.

In its quarterly presentation, the company highlighted key macro trends, noting that low commodity prices continued to impact grower incomes in Brazil, while uncertain grower sentiment in the US was influenced by potential tariff risks.


UPL also reported a decline in net debt, attributed to lower working capital requirements and a significant improvement in gearing ratios. Net debt stood at Rs 21,371 crore at the end of Q1FY26, down from Rs 27,500 crore a year earlier, the company said.

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Should you buy, sell, or hold UPL's stock? Here’s what brokerages say:

Motilal Oswal

Motilal Oswal Financial Services (MOFS) has maintained a ‘Neutral’ rating on UPL with a target price of Rs 700. The brokerage noted that margin gains are being driven by a better product mix and operating leverage. Growth was seen across most platforms, except UPL Corp, which faced volume pressure.

Despite macroeconomic challenges, UPL delivered a resilient Q1FY26 performance. MOFS expects stronger growth in the second half of FY26, supported by a recovery in volumes. However, pricing is expected to remain soft, even as contributions from new products increase.

For FY25–27, MOFS projects a compound annual growth rate (CAGR) of 7% in revenue, 13% in EBITDA, and 53% in adjusted profit after tax (PAT).

Antique

Antique has raised UPL’s target price to Rs 730 from Rs 710 while maintaining a ‘Buy’ rating. The brokerage noted that while the company’s performance has remained subdued, its FY26 guidance is unchanged.

Antique highlighted UPL’s plans to increase prices of key products to support margin recovery. It also noted that deleveraging the balance sheet remains a medium-term priority for the company.

However, due to higher finance costs and adverse forex impact, Antique has cut its FY26 and FY27 earnings estimates by 13% and 10%, respectively.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)