UPL Limited , a global provider of sustainable agricultural solutions, has announced its financial results for the second quarter, showing significant improvement across key metrics.

Financial Highlights

• Revenue: ₹120 billion, up from ₹111 billion in the same period last year
• EBITDA: ₹2,205 crore, a 40% increase year-over-year
• EBITDA Margin: 18.3%, improved by 410 basis points
• Profit After Tax and Minority Interest (PATMI): ₹553 crore, compared to a loss of ₹443 crore in the same quarter last year

Segment Performance

UPL's performance was driven by strong growth across its business platforms:

• UPL Corp: Revenue up 12% to ₹8,625 crore
• Advanta (Seeds & Post-harvest): Revenue increased 26% to ₹1,669 crore
• SUPERFORM: Revenue steady at ₹2,799 crore
• UPL SAS (India Crop Protection): Revenue declined 10% to ₹911 crore due to unfavorable weather conditions

Regional Performance

Balance Sheet and Cash Flow

• Net debt reduced by over ₹3,700 crore compared to the previous year
• Net working capital days improved to 118 days from 123 days in the previous year
• Net debt to EBITDA ratio improved to 2.7x from 5.4x in the previous year

Management Comments

Jai Shroff, Chairman & Group CEO of UPL Limited, stated: "We are pleased to report a strong first half, with a superior Q2 building on the momentum from previous quarter. Our deep relationships in key markets and diversified customer base continue to drive sustainable growth."

Bikash Prasad, Group CFO, added: "Q2 has been a standout quarter, underscoring our operational excellence and financial discipline across platforms. We delivered broad-based EBITDA growth, reduced net debt, lowered finance costs through effective capital management, and improved our gearing, resulting in a strong PATMI."

Outlook

Based on the strong performance and favorable outlook, UPL has upgraded its FY26 EBITDA growth guidance to 12-16% from the previously announced range of 10-14%, while maintaining its revenue growth guidance of 4-8%.

UPL continues to focus on unlocking value through its strategically built platforms and is actively evaluating opportunities, including restructuring, strategic fund-raising, and potential liquidity events.

FMC Corporation , a global agricultural sciences company, has announced a reduction in its forecast, citing ongoing price declines in key markets. The company's decision reflects the current challenges faced by the agricultural sector in Latin America and Asia.

Market Pressures

The revised forecast comes as a result of two primary factors:

1. Rising Generic Competition: FMC is facing increased pressure from generic products in its key markets.
2. Challenging Economic Conditions: Farmers in Latin America are experiencing difficult economic circumstances, impacting their purchasing power and decisions.

Regional Impact

The company's performance is being particularly affected in two major regions:

These regional challenges are significant for FMC, as Latin America and Asia represent important markets for agricultural products and solutions.

Industry Implications

The situation faced by FMC may be indicative of broader trends in the agricultural sector:

• Pricing Pressure: The ongoing price declines suggest a competitive market environment, potentially benefiting farmers but challenging for agricultural science companies.
• Economic Sensitivity: The impact of economic conditions on farmers' purchasing decisions highlights the sector's vulnerability to broader economic trends.
• Generic Competition: The rise of generic alternatives in the agricultural sciences sector may lead to further pressure on established players to innovate and differentiate their offerings.

As the agricultural sector navigates these challenges, investors and industry observers will be closely watching how companies like FMC adapt their strategies to maintain competitiveness in an evolving market landscape.

FMC Corporation's next earnings report will be crucial in understanding the full impact of these market conditions on the company's performance and its plans to address these challenges in the coming quarters.