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UPL share price rally 8% after Q3 earnings beat; analysts raise target pricesUPL maintained its FY26 guidance of 4-8% revenue growth and 12-16% EBITDA growth.By Meghna Sen  February 3, 2026, 11:36:53 AM IST (Published)2 Min ReadShares of UPL Ltd. surged as much as 8% on Tuesday, February 3, after brokerages raised their target prices following a strong December quarter performance.

The agrochemicals major reported a Q3 result that came in well ahead of estimates, driven by robust revenue growth, margin improvement and a meaningful reduction in debt, while maintaining its FY26 guidance.

Kotak Institutional Equities retained its 'Sell' rating on the stock but raised its target price to ₹630 per share.

The brokerage said the operating performance in Q3 beat expectations, although below-the-line items were weaker.

Kotak added that with FY26 EBITDA growth guidance of 12-16% maintained, it has made only modest revisions to its FY26-28 estimates.

Investec, on the other hand, maintained a 'Buy' rating and raised its target price to ₹975 per share.

The brokerage said that Q3 EBITDA rose 13% year-on-year, about 12% above estimates, led by a strong beat on both revenue and margins.

Europe and Rest of the World delivered strong double-digit growth, while other geographies posted mid-single digit growth. Growth in the Americas remained muted at 3% year-on-year as the company deferred shipments worth $30 million in anticipation of a trade deal.

To mitigate tariff-related risks, the company has implemented price hikes and is restructuring its supply chain by shifting from importing formulated products to importing technicals, which are tariff-exempt.

Management expressed confidence in delivering growth in Q4 despite a high base and expects net debt to EBITDA to decline to 1.6-1.8x in FY26, compared with 2.1x in FY25.

UPL reported revenue growth of 12% in Q3, well above the estimated 5%, driven by higher volumes, particularly in the Advanta business, and supported by favourable foreign exchange.

EBITDA grew 13% against expectations of flat growth, aided by an improved product mix, higher capacity utilisation and lower input costs.

Net debt stood at ₹23,317 crore, down ₹2,553 crore year-on-year, and more than $800 million lower when adjusted for perpetual bonds. Net working capital increased to 116 days from 107 days a year ago.

Regionally, growth was led by Europe, up 21%, and Rest of the World, up 32%, with continued momentum in India and the Americas.

The company maintained its FY26 guidance of 4-8% revenue growth and 12-16% EBITDA growth.

Among platforms, Advanta delivered strong growth of 22%, the crop protection segment rose 8% on higher volumes, while specialty chemicals surged 42%.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.TagsUPLUPL Share Price