UPL shares fell after Jefferies cut its target price on weak Q1 profitability.
UPL Q1 revenue met estimates, but EBITDA and net profit missed expectations.
Jefferies flagged higher working capital and flat net debt as key concerns.
Shares of UPL fell more than 6% on Tuesday after brokerage Jefferies cut its target price on the agrochemical company's stock, citing weaker-than-expected profitability in the June quarter despite revenue meeting expectations.
The stock settled 6.15% lower at ₹581.90 on the NSE, snapping a two-session gaining streak.
1 August 2026
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Jefferies lowered its target price on UPL to ₹715 per share after the company's June-quarter earnings.
The brokerage said revenue growth was largely supported by favourable foreign exchange movements, while EBITDA remained below its expectations despite inventory gains. It also noted that working capital increased during the quarter, while net debt remained flat year-on-year.
According to Jefferies, the stock has declined 21% year-to-date in CY26, although it continues to expect UPL's EBITDA to grow 14% in FY27.
Profit Drops Sequentially
UPL reported a consolidated net profit of ₹10 crore for the quarter ended June 30, compared with ₹1,061 crore in the March quarter, marking a sequential decline of around 99.1%.
The company had reported a net loss of ₹88 crore in the corresponding quarter last year.
Revenue from operations increased 10.47% year-on-year to ₹10,181 crore from ₹9,216 crore in the year-ago period.
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Chairman and Group CEO Jai Shroff said rising global food demand continues to support long-term opportunities in seeds, crop protection and bio-solutions despite macroeconomic uncertainties.
He added that UPL remains focused on creating shareholder value through its proposed global crop protection platform and unlocking value from its seeds and post-harvest businesses while leveraging synergies across manufacturing, research and development, and innovation.
