UPL vs SRF Q4 FY26

UP

UPL

Q4 FY26 · Other

UPL delivered a strong FY26 with revenue up 11% to ₹52,000 crore and EBITDA up 18%, driven by volume-led growth across all regions and platforms. Contribution margin expanded 220bps to 31.5% in crop protection, while net debt/EBITDA fell to 1.6x from 2.1x. The company provided a Q1 FY27 guidance of 10-14% revenue growth and 14-18% EBITDA growth, citing cautious optimism despite Middle East supply disruptions. A key risk is the elevated ECL provision of ₹350 crore in Q4, reflecting credit stress in Latin America. Management also announced a reorganization to unlock value in Advanta and Superform, though some investors raised concerns about shareholder dilution.

Guidance read

Q1 FY27 Revenue Growth 10-14%: Management guided Q1 FY27 revenue growth of 10-14% YoY, driven by volume and price, with FX tailwind of 7-9%. Q1 FY27 EBITDA Growth 14-18%: EBITDA growth guided at 14-18% for Q1 FY27, reflecting operating leverage despite seasonally low quarter. Capex Guidance $300-350M for FY27: Capex expected to increase to $300-350 million from $261 million in FY26, focused on specialty chemicals and backward integration. Net Debt/EBITDA Target 1.2-1.5x Medium Term: Target leverage ratio of 1.2-1.5x in the medium term, with current at 1.6x; will maintain optimal capital structure.

Risk read

Key risks include Middle East Supply Chain Disruption — Geopolitical tensions could increase raw material costs and working capital needs; management is managing via disciplined sourcing and pricing.; Elevated Credit Loss Provisions in LatAm — Q4 ECL provision of ₹350 crore (full year ₹750 crore) reflects credit stress in Latin America; analyst questioned if this is the new normal.; Shareholder Dilution from Reorganization — Analyst raised concern that the proposed demerger structure could trigger a conglomerate discount and dilute existing shareholders.; Fertilizer Price Impact on Farmer Economics — Higher fertilizer costs may reduce farmer incomes and potentially lower agrochemical consumption, though management expects crop protection demand to hold..

Promise ledger

Scorecard data is being built as historical quarters are processed.

SR

SRF

Q4 FY26 · Other

SRF delivered a strong FY26 with revenue of ₹15,787 crore (+7% YoY), EBITDA of ₹3,800 crore (+29% YoY), and PAT of ₹1,835 crore (+47% YoY), driven by record fluoro-chemicals performance and margin expansion. The chemicals business grew 16% to ₹7,779 crore, while performance films and technical textiles showed recovery. Management guided for 15-20% growth in chemicals in FY27, supported by HFC debottlenecking, specialty chemicals recovery, and new capacities (HFO, fluoropolymers, BOPP). Key risks include geopolitical disruptions in the Middle East, forex mark-to-market losses, and pricing pressure in specialty chemicals from Chinese competition.

Guidance read

Chemicals business growth 15-20% in FY27: Management expects the chemicals segment to grow 15-20% in FY27, driven by HFC volumes, specialty recovery, and new capacities. HFO plant commissioning by Feb 2028: The new HFO plant in Odisha is expected to be commissioned by February 2028, with all three products coming up in parallel. BOPP line to commence production in July 2026: The new BOPP line is on track to start production in July 2026, strengthening the packaging films portfolio. PA line (BOPA) operational by September 2027: A state-of-the-art polyamide line, India's first based on simultaneous stretching, will be operational by September 2027 with an investment of ₹180 crore.

Risk read

Key risks include Geopolitical disruption in Middle East — Sales into the Middle East were impacted in Q4 due to geopolitical tensions, though management rerouted shipments to other markets.; Forex mark-to-market losses — Sharp rupee depreciation led to mark-to-market losses on forward hedges, impacting FY26 results and expected to persist near-term.; Pricing pressure from Chinese competition in specialty chemicals — Aggressive Chinese pricing has compressed margins in specialty chemicals; management expects normalization but timing uncertain.; HCFC quota uncertainty — Government has not clarified whether HCFC production will be included in baseline quota calculations, creating regulatory risk for HFC capacity expansion..

Promise ledger

Scorecard data is being built as historical quarters are processed.