UPL Ltd.
NSE: UPLUPL Ltd.: A 30-second snapshot
UPL Limited, a global agrochemicals and seeds company, trades at 645.25 with a trailing PE of 28.9x and a D/E ratio of 57.13 — among the highest leverage levels in the Chemicals sector. FY26 revenue grew 11% to 51,839 crore and Q4 FY26 profit rose 20%, yet the stock sits 7.3% below its 200-DMA and has returned just 2.09% over 12 months. The forward PE of 13.4x reflects market expectations of a significant earnings step-up from current thin margins of 3.71%.
P/E
28.9
Forward P/E
13.4
ROE
+5.6%
Debt / Equity
57.13
Profit Margin
+3.7%
Div. Yield
+0.9%
5Y ROE > 15%
0/5
5Y FCF > 0
4/5
Quality
44/100
News
8 headlines · 7 positive · 1 negative
UPL Secures FCO Registration for Bioclassic in India, Strengthening Its Biologicals Portfolio - AgriBusiness Global
AgriBusiness Global
UPL Limited FY26 Revenue Climbs 11% to ₹51,839 Crore, Advanta Surges 23% YoY - Global Agriculture
Global Agriculture
UPL posts record FY26 profit surge - Indian Chemical News
Indian Chemical News
UPL profit up 20% in Q4 on higher demand, better margins - BusinessLine
BusinessLine
UPL FY26 Revenue Grows 10% to ₹51,839 Crore, Beats Guidance; ₹6 Dividend Declared - scanx.trade
scanx.trade
Recent context
- ·FY26 revenue of 51,839 crore grew 11% YoY, with the Advanta seeds segment up 23% YoY, and Q4 FY26 profit rose approximately 20% on higher demand and better margins, according to BusinessLine and Indian Chemical News (May 2026).
- ·UPL secured FCO registration for its Bioclassic biological product in India, adding to its biologicals portfolio as the company shifts toward differentiated crop-protection solutions (AgriBusiness Global, May 2026).
- ·Despite the positive FY26 earnings release and a 6 dividend declaration, the stock has gained only 2.09% over 12 months, and the gap between the trailing PE (28.9x) and forward PE (13.4x) reflects the degree to which the current valuation depends on a sustained margin and earnings recovery materializing.
Strengths
- +Revenue CAGR of 17.7% over 5 years and earnings CAGR of 33.2% over the same period indicate a business that has grown its top and bottom lines at scale, reaching 51,839 crore in FY26 revenues.
- +FCF was positive in 4 of the available persistence years, suggesting the business has generated cash in most recent periods despite the high debt load.
- +At 645.25, the price is 3.9% above the 50-DMA of 634.61, reflecting near-term price position above the shorter-term trend line.
- +Analyst mean rating of 1.83 across 18 analysts (1-5 scale, lower = more constructive), with 8 recent news items skewing 7:1 positive, including an FCO registration for Bioclassic biologicals adding to the product pipeline.
Weaknesses
- −D/E ratio of 57.13 is extreme for a non-financial chemicals company; combined with ROE of 5.61% and net margin of 3.71%, the debt-servicing capacity is structurally limited.
- −ROE has not exceeded 15% in any year of the persistence window (roeYearsAbove15 = 0), ranking last among 6 Chemicals sector peers tracked; Pidilite (23.52%), Solar Industries (31.33%), and Coromandel (15.59%) all deliver materially higher returns on equity.
- −The stock trades 7.3% below the 200-DMA of 696.35, reflecting sustained underperformance relative to its own long-term price trend over the trailing 12 months (+2.09%).
- −Consistency score of 5 and profit margin of 3.71% point to earnings volatility and thin margins, leaving little buffer against revenue shortfalls or commodity-cost increases.
Open questions
- ?Does the 5-year earnings CAGR of 33.2% reflect a durable improvement in UPL competitive position, or has it been driven by commodity tailwinds and financial leverage that could reverse?
- ?At a D/E of 57.13 with a flat debt trend, what is the realistic timeline and mechanism by which UPL reduces its leverage to levels more comparable to peers, and what happens to earnings per share if cash generation is directed toward debt repayment rather than reinvestment?
- ?The forward PE of 13.4x versus trailing PE of 28.9x assumes a near-doubling of earnings power; which specific business units or margin recovery levers are expected to drive this, and have they been consistently delivered in prior cycles?
- ?The biologicals portfolio expansion (Bioclassic registration) and Advanta seeds growth (+23% YoY) represent strategic diversification; does the revenue mix shift toward these segments structurally improve margin quality, or do they carry similar commodity-cycle risks to the core agrochemicals business?
Peer comparison: Chemicals
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| UPL | UPL Ltd.You're viewing | 28.9 | +5.6% | 44 |
| Industry avg | across 5 peers | 52.0 | +19.3% | 44 |
| PIDILITIND | Pidilite Industries Ltd. | 60.7 | +23.5% | 66 |
| SOLARINDS | Solar Industries India Ltd. | 97.8 | +31.3% | 61 |
| SRF | SRF Ltd. | 43.5 | +13.8% | 41 |
| COROMANDEL | Coromandel International Ltd. | 27.0 | +15.6% | 30 |
| PIIND | PI Industries Ltd. | 31.0 | +12.3% | 23 |
Technical state
Current price
₹645.25
SMA 50
₹634.61
SMA 200
₹696.35
RSI (14)
51.3 (neutral)
From 52w high
-20.6%
1Y return
+2.1%
3M return
+2.3%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 57.13 is extremely elevated for a non-financial chemicals company. With ROE of 5.61% and net profit margin of 3.71%, the capacity to service this debt load is constrained. Debt trend is flat, indicating no deleveraging progress.
- highROE of 5.61% has not exceeded 15% in any year of the available persistence window (roeYearsAbove15 = 0), and the consistency score of 5 signals structurally weak and volatile return generation. Profit margin of 3.71% is thin for a global agrochemicals company of this scale.
- mediumPrice of 645.25 is 7.3% below the 200-DMA of 696.35 and has delivered only +2.09% over 12 months, indicating the stock has lagged its own long-term trend for an extended period.
- mediumROE of 5.61% ranks 6th (last) among the 6 chemical sector peers tracked; peers Pidilite (23.52%), Solar Industries (31.33%), Coromandel (15.59%), SRF (13.76%), and PI Industries (12.35%) all report higher ROE. Quality score of 44 ranks 3rd of 6.
Cross-section contradictions
- News sentiment is strongly positive (7 positive, 1 negative across 8 articles) driven by FY26 revenue of 51,839 crore (+11% YoY) and a reported Q4 profit surge, yet the stock has gained only 2.09% over 12 months — the positive earnings results have not translated into material price appreciation.
- Trailing PE of 28.9x versus forward PE of 13.4x implies the market is pricing in a sharp near-term earnings recovery, yet ROE of 5.61% with zero years above 15% in the persistence window and a consistency score of 5 raises questions about the structural basis for that implied recovery.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days