Chemical major UPL Limited on Monday reported a 52% year on year dip in its consolidated net profit (attributable to owners of the parent) at ₹396 crore for the quarter ended December 31, 2025. During the year-ago quarter, the company had reported a net profit of ₹828 crore.

The company reported a revenue ₹12,269 crore during Q3 FY26, up 12.5% from ₹10,907 crore reported during Q3 FY25. UPL's earnings before interest, tax, depreciation and amortisation (EBITDA) rose 18.5% to 2317 crore during the period.

High base effect impacts bottom line

The steep decline in the reported bottom line was primarily due to a high base effect from the previous year. The Q3 FY25 results had been boosted by a one-time tax provision reversal of ₹592 crore following a favourable order from an appellate authority. Excluding these exceptional items, the company stated that its operational profit after tax and minority interest (PATMI) actually grew by 45% year-on-year, driven by improved operational efficiency.

Focus on deleveraging

UPL reduced its net debt by ₹2,553 crore compared to the previous year, bringing the total net debt down to ₹23,317 crore as of December 2025. The Net Debt-to-EBITDA ratio improved to 2.5x from 3.8x in December 2024, an indicator of a strengthened balance sheet.

Broad-based growth

Operationally, the revenue growth was led by higher volumes and favourable foreign exchange rates. The company witnessed broad-based growth across key geographies, with the 'Rest of the World' region growing 32% and Europe registering a 21% increase. In terms of business segments, the seeds business (Advanta) was a standout performer, delivering 22% growth, while the specialty chemicals segment surged 42%. The core crop protection segment also maintained momentum with 8% growth.

Contribution margins expanded significantly by 160 basis points to 42.6%, aided by an improved product mix, higher capacity utilisation, and lower input costs.

UPL’s subsidiary, Advanta Enterprises, filed its Draft Red Herring Prospectus (DRHP) with SEBI on January 19, 2026.

Jai Shroff, chairman and group CEO, described it as a "record quarter" built on a solid foundation. He said that the company's platforms are on a pathway to unlocking significant value as they continue to transform and scale. Looking ahead, the management remains optimistic about a seasonally strong fourth quarter and has reaffirmed its guidance for the full financial year FY26.

The shares of UPL ended 5.22% higher at ₹699.65 apiece on the national stock exchange on Monday. The company's stock has risen over 11% in the past year, outperforming the benchmark Nifty 50 index that has risen close to 8% during the same period.