Q1 2027 UPL Ltd Earnings Call

Speaker #1: Ladies and gentlemen, good day and welcome to the UPL Limited Q1 FY2027 earnings conference call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator 2: Ladies and gentlemen, good day and welcome to the UPL Limited Q1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Anurag Gupta. Thank you. Over to you, sir.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Anurag Gupta. Thank you, and over to you, sir.

Speaker #2: Thank you, Azirath. Good afternoon, everyone. On behalf of the UPL management team, I thank you for joining us today to discuss the financial performance for the first quarter of FY27.

Anurag Gupta: Thank you, Adhiraj. Good afternoon, everyone. On behalf of the UPL management team, I thank you for joining us today for discussing the financial performance for the first quarter of FY27. The investor presentation, press release, and the financial statements have been made available on the exchanges and our website. We take it that you have read the safe harbor statement. From the management team, we have with us today Group Chief Financial Officer, Bikash Prasad, CEO of Global Crop Protection Business, Mike Frank, CEO of India Crop Protection Platform, Ravi Cherukuri, CEO of Seeds Business Advanta, Bhupen, CEO of Specialty Chemistries Platform Superform, Raj Tiwari, and other members of the leadership team. In this earnings call, Bikash will take us through the overall performance for UPL Limited for the first quarter FY27.

Speaker #2: The investor presentation, press release, and the financial statement have been made available on the exchanges and our website, and we take it that you have read the Safe Harbor statement.

Speaker #2: From the management team, we have with us today Group Chief Financial Officer Vikas Prasad; CEO of Global Crop Protection Business, Mike Frank; CEO of India Crop Protection Platform, Ravi Charukuri; CEO of Seeds Business Advanta, Bhupen; CEO of Specialty Chemistries Platform, Superform, Raj Tiwari; and other members of the leadership team.

Speaker #2: In this earnings call, Vikas will take us through the overall performance for UPL Limited for the first quarter of FY27. This will be followed by Mike, who will share his detailed remarks on UPL Corporation, followed by Vikas again.

Anurag Gupta: This will be followed by Mike, who will share his detailed remarks on UPL Corporation, followed by Bikash again. We will have the Q&A session post that. We would also like to share a brief update with you upon conclusion of the Q&A session and would be grateful if you could stay connected for a few more minutes thereafter. With that, I now hand it over to Bikash. Bikash, over to you.

Speaker #2: We will have the Q&A session after that. We would also like to share a brief update with you upon conclusion of the Q&A session, and would be grateful if you could stay connected for a few more minutes thereafter.

Speaker #2: With that, I now hand it over to Vikas. Vikas, over to you.

Speaker #3: Thank you, Anurag. Good evening, everyone, and a very warm welcome to UPL's first quarter FY27 earnings call. Thank you for joining us today. I am pleased to share that UPL has delivered on its quarterly guidance with a resilient performance, despite a demanding macro environment.

Bikash Prasad: Thank you, Anurag. Good evening, everyone, and a very warm welcome to UPL's first quarter FY 2027 earnings call. Thank you for taking the time to join us today. I'm pleased to share that UPL has delivered on its quarterly guidance with a resilient performance despite a demanding macro environment. This marks our seventh consecutive quarter of revenue and EBITDA growth. Further, this is also our strongest and positive first quarter in terms of net income that is PATNI in the past three years. It was a quarter of disciplined, high-quality execution that extends our track record of profitable growth into FY 2027, and does so with further improvements in our gearing ratios. As a team, we have stayed focused on the fundamentals. That is executing with discipline, maintaining robust governance, and building momentum for sustainable value creation over the medium to long term.

Speaker #3: This marks our seventh consecutive quarter of revenue and EBITDA growth. Further, this is also our strongest and most positive first quarter in terms of net income—that is, PATMI—in the past three years.

Speaker #3: It was a quarter of disciplined, high-quality execution that extends our track record of profitable growth into FY27, and does so with further improvement in our gearing ratios.

Speaker #3: As a team, we have stayed focused on the fundamentals—that is, executing with discipline, maintaining robust governance, and building momentum for sustainable value creation over the medium to long term.

Speaker #3: Over the past year, we have sharpened our focus on the quality of the business, bottom line, and on returns. That discipline is further evident in this quarter's results.

Bikash Prasad: Over the past year, we have sharpened our focus on the quality of business, bottom line, and on returns. That discipline is further evident in this quarter's result. In today's call, we'll take you through the key financial and strategic highlights of the quarter, offer some context on the drivers behind our performance, and share our outlook for FY 2027. Before I turn to the numbers, let me first touch upon the macro backdrop we navigated through during the quarter and a few important corporate updates. Coming first to the macroeconomic backdrop, the quarter played out against continued volatility and geopolitical uncertainties, including the ongoing conflict in West Asia. We navigated through the weather-led planting delays across India, US, and Europe, and persistent farm income stress in several key geographies. Yet, the structural need for food security keeps feed and crop production firmly at the heart of agriculture.

Speaker #3: In today's call, we'll take you through the key financial and strategic highlights of the quarter, offer some context on the drivers behind our performance, and share our outlook for FY27.

Speaker #3: Before I turn to the numbers, let me first touch upon the macro backdrop we navigated through during the quarter and a few important corporate updates.

Speaker #3: Coming first to the macroeconomic backdrop, the quarter played out against continued volatility and geopolitical uncertainties, including the ongoing conflict in West Asia. We navigated through the weather-led planting delays across India, the US, and Europe, and persistent farm income stress in several key geographies.

Speaker #3: Yet the structural need for food security keeps feed and crop production firmly at the heart of agriculture. Encouragingly, demand for global crop production remained resilient at the farm-gate level.

Bikash Prasad: Encouragingly, demand for global crop production remained resilient at the farm gate level, as reflected in the continued stable grower consumption, while a stable SOFR eased our financing cost through the quarter. On the geopolitical front, the conflict in West Asia kept input costs and supply chain volatility elevated. We managed this proactively through diversified sourcing and index-linked contracts and saw no material impact on availability. On the weather, El Niño-led delays affected planting in parts of India and Europe, phasing some demand into the latter quarters. My colleague, Mike, will speak on the crop production impact in greater details. Moving on to a few important corporate updates for the quarter. I'm pleased to share the following. First, on the Advanta IPO, we received SEBI approval on 3 June. This is a significant milestone in the value unlocking of our seeds and post-harvest business.

Speaker #3: As reflected in the continued stable grower consumption, boiler stability so far has eased our financing cost through the quarter. On the geopolitical front, the conflict in West Asia kept input cost and supply chain volatility elevated.

Speaker #3: We managed this proactively through diversified sourcing and index-linked contracts, and saw no material impact on availability. On the weather, El Niño-led delays affected planting in parts of India and Europe, facing some demand into the latter quarters.

Speaker #3: My colleague Mike will speak on the crop protection impact in greater detail. Moving on to a few important corporate updates for the quarter, I am pleased to share the following.

Speaker #3: First, on the Advanta IPO, we received SEBI approval on the 3rd of June. This is a significant milestone in the value unlocking of our seeds and post-harvest business.

Speaker #3: As the process remains subject to regulatory timelines, we would like to restrict our comments on this matter. Second, on the reorganization of our crop protection business, I am pleased to share that we received CCI approval on June 2nd, and no adverse observation letters from BSC and NSC on July 29th.

Bikash Prasad: As the process remains subject to regulatory timelines, we would like to restrict our comments on this matter. Second, on the reorganization of our crop production business, I'm pleased to share that we received CCI approval on 2 June and no adverse observation letters from BSE and NSE on 29 July. The reorganization process is firmly on track towards a single focused global crop production platform, which will leverage the synergies of our shared manufacturing, R&D, and innovation capabilities. Third, on the ratings. CareEdge upgraded UPL Limited long-term rating to CARE AA+ with a stable outlook from CARE AA. This is a strong endorsement of our strengthened credit profile, and it builds on the outlook upgrades we received from the three global rating agencies in FY 2026.

Speaker #3: The reorganization process is firmly on track towards a single, focused global crop production platform. This will leverage the synergies of our shared manufacturing, R&D, and innovation capabilities.

Speaker #3: Third, on the ratings, CareEdge upgraded UPL Limited's long-term rating to CARE AA+ with a stable outlook from CARE AA. This is a strong endorsement of our strengthened credit profile, and it builds on the outlook upgrades we received from the three global rating agencies in FY26.

Speaker #3: And finally, on sustainability, I am excited to announce that we have retained our inclusion in the FTSE4Good Index with an improved ESG score of 4.4.

Bikash Prasad: Finally, on sustainability, I'm excited to announce that we have retained our inclusion in the FTSE4Good Index with an improved ESBS score of 4.4. This reaffirms our standing amongst the leading sustainability performers in our sector. Coming now to our Q1 FY2027 performance overview. Revenue was INR 10,181 crore, up a robust 10%, led by 3% positive pricing and a favorable exchange impact, partially offset by a 3% decline in volumes. The volume softness was largely a function of severe weather-led delays and heat wave conditions in Europe, along with overall volume pressure in Latin America. This was, however, offset by a strong volume growth in our seeds and super specialty chemicals business. Overall, our growth was broadest across all platforms and all regions. Contribution rose 15% to INR 4,607 crore, with margin expanding 100 basis points to 45.2%.

Speaker #3: This reaffirms our standing among the leading sustainability performers in our sector. Coming now to our Q1 FY27 performance overview, revenue was ₹10,181 crore, up a robust 10%, led by 3% positive pricing and a favorable exchange impact, partially offset by a 3% decline in volumes.

Speaker #3: The volume softness was largely a function of severe weather-led delays and heat wave conditions in Europe, along with overall volume pressure in Latin America.

Speaker #3: This was, however, offset by strong volume growth in our seeds and super specialty chemicals business. Overall, our growth was broad-based across all platforms and all regions.

Speaker #3: Contribution rose 15% to ₹4,607 crore, with margin expanding 100 bps to 45.2%. Our focus on profitable growth is evident in these expanding margins, underpinned by decisive pricing actions and a favorable portfolio mix.

Bikash Prasad: Our focus on profitable growth is evident in these expanding margins, underpinned by decisive pricing actions and a favorable portfolio mix. Our Q1 EBITDA grew by 15% to INR 1,500 crore, broad-based across all platforms, with EBITDA margin improving by 60 basis points to 14.7%. Profit before tax improved by around INR 80 crore versus last year. PATMI turned positive at INR +10 crore, up from INR -88 crore, and operational PATMI turned positive at INR +19 crore, up from INR -78 crore. This turnaround is the first in three years. Key drivers for this improvement include a lower net finance cost and a favorable net exchange difference. These gains were partially offset by planned higher depreciation and higher losses in our joint ventures and associates this quarter. Importantly, as we have consistently demonstrated over the past year, this improvement is structural rather than one-off.

Speaker #3: Our Q1 EBITDA grew by 15% to ₹1,500 crore, broad-based across all platforms, with the EBITDA margin improving by 60 bps to 14.7%. Profit before tax improved by around ₹80 crore versus last year.

Speaker #3: That means earnings turned positive at ₹10 crore, up from a negative ₹88 crore. And operational PAT also turned positive at ₹19 crore, up from a negative ₹78 crore.

Speaker #3: This turnaround is the first in three years. Key drivers for this improvement include a lower net finance cost and a favorable net exchange difference.

Speaker #3: These gains were partially offset by planned higher depreciation and higher losses in our joint ventures and associates this quarter. Importantly, as we have consistently demonstrated over the past year, this improvement is structural rather than one-off.

Speaker #3: It is anchored in sustainable contribution and EBITDA margin expansion, and supported by focused financial discipline. Let me now walk you through the results summary.

Bikash Prasad: It is anchored in sustainable contribution and EBITDA margin expansion and supported by focused financial discipline. Let me now walk you through the results summary. Overall, our growth was broad-based across all regions, wherein North America grew 18%, led by herbicide volume such as S-metolachlor, alongside fungicide volume, solid post-harvest growth and aquatic business, a niche but consistently well-performing asset for us in this region. India grew 15% as higher pricing offset delayed monsoon-related volume challenges in crop protection. This was complemented by a strong volume in seeds, notably field corn and in super specialty chemicals. Latin America was up 8% led by Brazil. Argentina witnessed crop protection challenges that were partially offset by sunflower seeds. Europe was up by 4%, with favorable currency and disciplined pricing cushioning weather-led volume softness, most notably in herbicides.

Speaker #3: Overall, our growth was broad-based across all regions, with North America growing 18%, led by herbicide volume such as Esmet, alongside fungicide volumes, solid post-harvest growth, and the aquatic business—a niche but consistently well-performing asset for us in this region.

Speaker #3: India grew 15%, as higher pricing offset delayed monsoon-related volume challenges in crop protection. This was complemented by strong volume in seeds, notably SilQin, and in super specialty chemicals.

Speaker #3: Latin America was up 8%, led by Brazil. Argentina witnessed crop protection challenges that were partially offset by sunflower seeds. Europe was up by 4%, with favorable currency and disciplined pricing cushioning weather-led volume softness, most notably in herbicides.

Speaker #3: And finally, Rest of the World grew 7%, led by a robust performance in Indonesia across crop protection and field corn, and supported by South Asia.

Bikash Prasad: Finally, rest of the world grew 7%, led by a robust performance in Indonesia across crop protection and field corn and supported by South Asia. Turning now to platform-wise performance. UPL Corp, our global crop protection business, grew revenue by 7% to INR 6,374 crore. EBITDA was up a strong 38% to INR 532 crore, and EBITDA margin expanded by 190 basis points. This was led by an improved product and regional mix, lower ECL, and favorable currency movement. My colleague Mike will cover this in detail shortly. UPL Crop, our India crop protection business, had slight revenue growth with a strong pricing offset by delayed monsoon-led lower volumes. I'm, however, pleased with the significant improvement in the platform's profitability.

Speaker #3: Turning now to platform-wise performance, UPL COP, our global crop protection business, grew revenue by 7% to ₹6,374 crore. EBITDA was up a strong 38% to ₹532 crore.

Speaker #3: And EBITDA margin expanded by 190 basis points. This was led by an improved product and regional mix, lower ECL, and favorable currency movement. My colleague Mike will cover this in detail shortly.

Speaker #3: UPL SAS, our India crop protection business, had slight revenue growth, with strong pricing offset by a delayed monsoon that led to lower volumes. I am, however, pleased with the significant improvement in the platform's profitability.

Speaker #3: EBITDA was up 34%, and margin expanded by around 750 basis points, driven by improved product mix and a sharper focus on business quality, including a higher focus on our new brands such as Centurion Easy, Canora Easy, Rusia, and Hermetric.

Bikash Prasad: EBITDA was up 34% and margin expanded by around 750 basis points, driven by improved product mix and a sharper focus on business quality, including a higher focus on our new brands such as Centurion EZ, Canora EZ, Brucia, and Harmetry. Advanta, our seeds and post-harvest platform, delivered a strong start to FY27 with 26% revenue growth in Q1 and 24% EBITDA growth, underpinned by disciplined commercial execution, early season channel placements, and our diversified global portfolio. Growth was led by corn in India, Latin America, and Indonesia, supported by rice in India, and a strong start to the pome and potato in the US post-harvest business. We continue to gain market share in strategic geographies despite the challenging El Niño environment.

Speaker #3: Advanta, our seeds and post-harvest platform, delivered a strong start to FY27 with 27% and 26% revenue growth in Q1, and 24% EBITDA growth, underpinned by disciplined commercial execution, early season channel placements, and our diversified global portfolio.

Speaker #3: Growth was led by corn in India, Latin America, and Indonesia, supported by rice in India and a strong start to the POM and potato in the US post-harvest business.

Speaker #3: We continue to gain market share in strategic geographies, despite the challenging El Niño environment. And Super Form, a 100% owned subsidiary of UPL Limited and the manufacturing and super specialty chemicals arm, grew 14%, with our specialty chemicals business up a striking 51%, driven by 17% volume growth and 34% price growth.

Bikash Prasad: Superform, 100% owned subsidiary of UPL Limited and manufacturing and super specialty chemicals arm, grew 14%, with our specialty chemicals business up a striking 51%, driven by 17% volume growth and 34% price growth. This was primarily led by the lubricants segment, among others. EBITDA was up by 7%, with the margin reflecting our planned future growth-related spending. In short, as you can see, our businesses remained resilient in this quarter despite multiple challenges. From West Asia conflict-led disruptions and inflated cost challenges impacting our Superform and specialty chemical business, to El Niño related impact on seeds and part of Global Crop Protection, to delayed and unfavorable weather conditions in India and Europe, we have overcome all.

Speaker #3: This was primarily led by the lubricants segment, among others. EBITDA was up by 7%, with the margin reflecting our planned future growth-related spending. In short, as you can see, our businesses remain resilient in this quarter despite multiple challenges.

Speaker #3: From West Asia conflict-led disruptions and inflated cost challenges impacting our Super Form and specialty chemical business, to El Niño-related impact on seeds and part of global crop protection, to delayed and unfavorable weather conditions in India and Europe, we have overcome all.

Speaker #3: This was through our agile response—that is, diversified sourcing and renegotiated supplier terms, backward integration capability, and the ability to push up pricing in key markets—leading to our delivering on our guidance in a strong manner.

Bikash Prasad: This was through our agile response, that is, Diversified sourcing and renegotiated supplier terms, backward integration capability, and ability to push up pricing in key markets, leading to our delivering on our guidance in a strong manner. Coming now to the balance sheet and liquidity. On debt, I would like to provide you all with a comfort by sharing that the significant improvement in our gearing ratios from last year has continued into this quarter, and we remain firmly on track towards our medium-term target of less than 1.5x net debt to EBITDA. In Q1, we reduced our gross debt by over $100 million, from $3.1 billion to $3 billion, despite absorbing a large seasonal working capital buildup. This reduction is a direct outcome of our disciplined capital management and sustained focus on deleveraging.

Speaker #3: Coming now to the balance sheet and liquidity on debt, I would like to provide you all with comfort by sharing that the significant improvement in our gearing ratios from last year has continued into this quarter, and we remain firmly on track towards our medium-term target of less than 1.5 times net debt to EBITDA.

Speaker #3: In Q1, we reduced our gross debt by over $100 million, from $3.1 billion to $3 billion, despite absorbing a large seasonal working capital buildup.

Speaker #3: This reduction is a direct outcome of our disciplined capital management and sustained focus on delivery. Net debt in US dollar terms, however, was flat year-on-year due to our planned additional capex and strategic investments.

Bikash Prasad: Net debt in US dollar terms, however, was flat year-on-year due to our planned additional CapEx and strategic investments. The reported rupee increase in debt figures are entirely due to currency translation effect, with the rupee depreciating from around 86 to nearly 95 against the dollar Q1 versus Q1. Since exchange rates have not moved materially since March, we have not presented a separate dollar balance sheet this quarter. Net working capital stood at 110 days, up around 24 days versus last June. Within this, inventory rose around 13 days, reflecting lower Q1 volumes, higher replacement input costs, and buildup ahead of the Q2 season in seeds and ag chem. Receivable days rose by around 12 days on lower crop production sales in Europe, and delayed India seed season. Our payable days were broadly flat.

Speaker #3: The reported rupee increase in debt figures is entirely due to currency translation effects, with the rupee depreciating from around 86 to nearly 95 against the dollar—Q1 versus Q1. Since exchange rates have not moved materially since March, we have not presented a separate dollar balance sheet this quarter.

Speaker #3: Net working capital stood at 110 days, up around 24 days versus last June. Within this, inventory rose around 13 days, reflecting lower Q1 volumes, higher replacement input cost, and buildup ahead of the Q2 season in seeds and ACME.

Speaker #3: Receivable days rose by around 12 days due to lower crop production sales in Europe and a delayed seed season in India. Our payable days were broadly flat.

Speaker #3: Our gearing ratios remain comfortably within our target range, with net debt to EBITDA improving to 2.4 times from 2.6 times, and net debt to equity broadly stable at 0.6 times.

Bikash Prasad: Our gearing ratios remain comfortably within our target range, with net debt to EBITDA improving to 2.4 times from 2.6 times, and net debt to equity broadly stable at 0.6 times. Our deleveraging trajectory remains fully intact. With that, I hand over to Mike, who will take you through the details of UPL Corp. Mike, over to you.

Speaker #3: Our deleveraging trajectory remains fully intact. With that, I will hand over to Mike, who will take you through the details of UPL COP. Mike, over to you.

Speaker #1: Thank you, Vikas, and hello everyone. Welcome to our FY27 first quarter earnings call. Before we review the quarter, I'd like to start by providing my thoughts on the global crop protection market.

Mike Frank: Thank you, Bikash, and hello, everyone, and welcome to our Q1 earnings call. Before we review the quarter, I'd like to start by providing my thoughts on the global crop protection market. Over the past several quarters, the ag chem industry has faced a complex and rapidly changing landscape with heightened volatility across global agricultural markets, driven by shifting geopolitics, changing trade flows, weather-related uncertainty, and ongoing pressure on farm economics. Although commodity prices have shown signs of stabilization and even some recovery lately, underlying grower profitability remains under pressure, with expenses continuing to rise relative to farm income. Growers are operating cautiously and taking a disciplined and value-focused approach to all their purchasing decisions. Geopolitical developments and evolving trade dynamics continue to reshape global supply chains.

Speaker #1: Over the past several quarters, the ACME industry has faced a complex and rapidly changing landscape, with heightened volatility across global agricultural markets driven by shifting geopolitics, changing trade flows, weather-related uncertainty, and ongoing pressure on farm economics.

Speaker #1: Although commodity prices have shown signs of stabilization and even some recovery lately, underlying grower profitability remains under pressure, with expenses continuing to rise relative to farm income.

Speaker #1: So, growers are operating cautiously and taking a disciplined, value-focused approach to all their purchasing decisions. Geopolitical developments and evolving trade dynamics continue to reshape global supply chains. As markets become more complex, supply chain resilience, sourcing flexibility, and regulatory efficiency are becoming increasingly important drivers of sustainable, long-term growth.

Mike Frank: As markets become more complex, supply chain resilience, sourcing flexibility, and regulatory efficiency are becoming increasingly important drivers of sustainable long-term growth. At the same time, changing crop patterns, growing biofuel demand, and continued innovation in crop protection, seeds, and biologicals are creating new opportunities and reshaping the industry. While the current environment presents some near-term challenges, the market continues to reward innovation, sustainability, and strong customer partnerships, areas where we believe UPL is well-positioned. Our Q1 performance reflects these strengths, highlighting the resilience of our portfolio, the benefits of our diversified regional footprint, and the value created through our continued focus on operational excellence. Turning to our Q1 performance for UPL Corp, our international crop protection business. Despite a challenging macroeconomic backdrop in Q1, our revenue grew by 7% compared to the same quarter last year.

Speaker #1: At the same time, changing crop patterns, growing biofuel demand, and continued innovation in crop protection, seeds, and biologicals are creating new opportunities and reshaping the industry.

Speaker #1: While the current environment presents some near-term challenges, the market continues to reward innovation, sustainability, and strong customer partnerships—areas where we believe UPL is well positioned.

Speaker #1: Our Q1 performance reflects these strengths, highlighting the resilience of our portfolio, the benefits of our diversified regional footprint, and the value created through our continued focus on operational excellence.

Speaker #1: So, turning to our Q1 performance for UPL Corp, our international crop protection business: Despite a challenging macroeconomic backdrop in Q1, our revenue grew by 7% compared to the same quarter last year.

Speaker #1: While certain markets continue to face weather-related disruption, pricing pressure, and softer demand, these headwinds were offset by growth in key markets and strong demand for our products.

Mike Frank: While certain markets continue to face weather-related disruption, pricing pressure, and softer demand, these headwinds were offset by growth in key markets and strong demand for our products. Our business model continues to help mitigate external volatility and positions us well to capture growth opportunities as market conditions improve. Looking at the performance of our portfolio, our herbicide portfolio was impacted by reduction in sugar beet area in Europe by approximately 7%, as well as increased weather stress across Europe and parts of Southeast Asia during the quarter, which affected application timing and demand. Despite these headwinds, key molecules such as S-metolachlor and propanil delivered stable performance, particularly in North America. Our fungicides business delivered a resilient and stable performance during the quarter, with strong growth in mancozeb across North America and Asia Pacific geographies, supported by tebuconazole in Europe.

Speaker #1: Our business model continues to help mitigate external volatility and positions us well to capture growth opportunities as market conditions improve. Looking at the performance of our portfolio, our herbicide portfolio was impacted by a reduction in sugar beet area in Europe by approximately 7%, as well as increased weather stress across Europe and parts of Southeast Asia during the quarter, which affected application timing and demand.

Speaker #1: Despite these headwinds, key molecules such as S-metolachlor and propanil delivered stable performance, particularly in North America. Our fungicides business delivered a resilient and stable performance during the quarter, with strong growth in mancozeb across North America and Asia Pacific geographies, supported by tetraconazole in Europe.

Speaker #1: While dry weather conditions in Europe limited fungicide applications and impacted market demand, the strength of our core portfolio helped sustain overall performance. Our insecticides portfolio continued to perform strongly, led by our acetate-based brands Frosi and Perito in Brazil's sucking pest segment.

Mike Frank: While dry weather conditions in Europe limited fungicide applications and impacted market demand, the strength of our core portfolio helped sustain overall performance. Our insecticides portfolio continued to perform strongly, led by our acephate-based brands, Feroce and Perito in Brazil's sucking pest segment. Together, these brands reinforce our leadership in this segment and support growers with a comprehensive portfolio throughout the crop cycle. We also saw strong demand in the chewing pest segment, where recent product launches of new technologies, brands such as Propose and Constel in Brazil, have achieved rapid adoption by growers, outperforming our initial expectations. Their continued success supports our long-term growth strategy, strengthens our portfolio differentiation, and reinforces our commitment to empowering growers with innovation and effective solutions.

Speaker #1: Together, these brands reinforce our leadership in this segment and support growers with a comprehensive portfolio throughout the crop cycle. We also saw strong demand in the chewing pest segment, where recent product launches of new technology brands such as Propose and Constel in Brazil have achieved rapid adoption by growers, outperforming our initial expectations.

Speaker #1: Their continued success supports our long-term growth strategy, strengthens our portfolio differentiation, and reinforces our commitment to empowering growers with innovation and effective solutions. Our sustainable solutions portfolio delivered a mixed performance this quarter.

Mike Frank: Our sustainable solutions portfolio delivered a mixed performance this quarter with strong growth in several strategic segments and geographies that were partially offset by the record dry and hot conditions in Europe, which impacted our sales in that region. From a regional perspective, our Natural Plant Protection business recorded growth in Latin America, Asia Pacific, and the Africa region. We continue to see growing adoption of biologicals and differentiated natural solutions among growers who are increasingly seeking sustainable and effective crop management tools. Our recent successful launches of NPP brands Nutrio and Nuvita across most geographies gives us confidence that we will deliver on our commitment of generating approximately INR 700 million in revenue for the full year from our sustainable solutions portfolio. Overall, our contribution margins expanded to 38.2%, growing nearly 350 basis points compared to the same quarter last year.

Speaker #1: We saw strong growth in several strategic segments and geographies, which was partially offset by the record dry and hot conditions in Europe that impacted our sales in that region.

Speaker #1: From a regional perspective, our natural plant protection business recorded growth in Latin America, Asia Pacific, and the Africa regions. We continue to see growing adoption of biologicals and differentiated natural solutions among growers who are increasingly seeking sustainable and effective crop management tools.

Speaker #1: Our recent successful launches of NPP brands Nutril and Nuvita across most geographies give us confidence that we will deliver on our commitment of generating approximately $700 million in revenue for the full year from our sustainable solutions portfolio.

Speaker #1: Overall, our contribution margins expanded to 38.2%, growing nearly 350 basis points compared to the same quarter last year. This was mainly driven by better mix, strategic pricing, lower input cost, and higher capacity utilization.

Mike Frank: This was mainly driven by better mix, strategic pricing, lower input costs, and higher capacity utilization. While most of the industry is reporting lower pricing, our proactive pricing approach in response to the Middle East conflict made us an outlier this quarter. Turning to SG&A, we continue to maintain disciplined approach to our discretionary spend while investing in strategic initiatives. We are leveraging advanced technologies and digital tools to streamline operations and strengthen our operating model while advancing our enterprise-wide transformation. Finally, our EBITDA grew 38% in the quarter, with margins expanding nearly 200 basis points compared to the same period last year. This encouraging result that marks our seventh consecutive quarter of EBITDA growth, highlighting the resilience of our business model and our ability to drive growth despite a challenging market environment. Let us now review the performance of our regions.

Speaker #1: While most of the industry is reporting lower pricing, our proactive pricing approach in response to the Middle East conflict made us an outlier this quarter.

Speaker #1: Turning to SG&A, we continue to maintain a disciplined approach to our discretionary spend while investing in strategic initiatives. We are leveraging advanced technologies and digital tools to streamline operations and strengthen our operating model, while advancing our enterprise-wide transformation.

Speaker #1: Finally, our EBITDA grew 38% in the quarter, with margins expanding nearly 200 basis points compared to the same period last year. This encouraging result marks our seventh consecutive quarter of EBITDA growth, highlighting the resilience of our business model and our ability to drive growth despite a challenging market environment.

Speaker #1: Let us now review the performance of our regions. Our regional performance this quarter demonstrates the value of our diversified geographic footprint, enabling us to capture growth opportunities across markets while navigating regional headwinds.

Mike Frank: Our regional performance this quarter demonstrates the value of our diversified geographic footprint, enabling us to capture growth opportunities across markets while navigating regional headwinds. LATAM posted 5% higher revenue this quarter. This growth was primarily driven by strong performance in Brazil, particularly in herbicides and insecticides, and was partially offset by softer market conditions, specifically in Colombia and Argentina. Positive currency movements helped mitigate the impact of pricing pressure in this region. Our business in North America delivered a strong quarter with 11% revenue growth. This performance was driven by disciplined commercial execution and strong demand for our herbicide and fungicide portfolio. Growth was led by products such as S-metolachlor, mancozeb, and propanil. Europe recorded a 2% growth in revenue. Our European business remained resilient despite challenging heatwave conditions that affected timing and demand in certain markets.

Speaker #1: LATAM posted 5% higher revenue this quarter. This growth was primarily driven by strong performance in Brazil, particularly in herbicides and insecticides, and was partially offset by softer market conditions, specifically in Colombia and Argentina.

Speaker #1: Positive currency movements helped mitigate the impact of pricing pressure in this region. Our business in North America delivered a strong quarter with 11% revenue growth.

Speaker #1: This performance was driven by disciplined commercial execution and strong demand for our herbicide and fungicide portfolios. Growth was led by products such as S-metolachlor, macrozibe, and propanil.

Speaker #1: Europe recorded a 2% growth in revenue. Our European business remained resilient, despite challenging heat wave conditions that affected timing and demand in certain markets.

Speaker #1: Portfolio strength, pricing discipline, and commercial excellence enabled us to maintain stable performance during the quarter. The region benefited from growth in key products such as Cletidum, Fazer, and Tetraconazole, alongside favorable currency impacts.

Mike Frank: Portfolio strength, pricing discipline, and commercial excellence enabled us to maintain stable performance during the quarter. The region benefited from growth in key products such as clethodim, Fazer, tebuconazole, alongside favorable currency impacts. Focused market engagement helped mitigate weather-related disruptions, supporting overall stability. In Africa and Asia Pacific geographies, they continued to deliver solid growth across key markets such as Indonesia and South Africa, overall posting 8% revenue growth in these regions. The strong performance in these geographies was primarily driven by our fungicide portfolio. Finally, for our working capital, we remain firmly committed to disciplined cash management and operational efficiency. We continue to actively optimize inventories, receivables, and payables to maintain industry-leading working capital efficiency. Finally, turning to our full-year outlook. Building on our Q1 momentum, we remain fully confident in delivering a strong Q2 and meeting our full-year commitments.

Speaker #1: Focused market engagement helped mitigate weather-related disruptions, supporting overall stability. In Africa and Asia Pacific geographies, they continued to deliver solid growth across key markets such as Indonesia and South Africa, overall posting 8% revenue growth in these regions.

Speaker #1: The strong performance in these geographies was primarily driven by our fungicide portfolio. Finally, for our working capital, we remained firmly committed to disciplined patch management and operational efficiency.

Speaker #1: We continue to actively optimize inventories, receivables, and payables to maintain industry-leading working capital efficiency. Finally, turning to our full-year outlook—building on our Q1 momentum—we remain fully confident in delivering a strong second quarter and meeting our full-year commitments.

Speaker #1: We expect a strong, volume-led quarter supported by in-season demand for our products in key markets and higher revenues from our new product launches. We will continue to drive our operational excellence agenda across the business.

Mike Frank: We expect a strong volume-led quarter supported by in-season demand for our products in key markets and higher revenues from our new product launches. We will continue to drive our operational excellence agenda across the business. During the quarter, we made further progress on our advanced planning system initiative, which is focused on enhancing our demand planning capabilities and helping us deliver better service levels and responsiveness to our customers. On the marketing excellence front, we will continue to accelerate the commercialization of new products and innovation and growth opportunities. I'm pleased to report that we are on track to achieve our INR 150 million in revenue from new product launches this year. These priorities remain fully aligned with our FY27 strategy and position us for both near-term performance and long-term value creation for our stakeholders.

Speaker #1: During the quarter, we made further progress on our advanced planning system initiative, which is focused on enhancing our demand planning capabilities and helping us deliver better service levels and responsiveness to our customers.

Speaker #1: On the marketing excellence front, we will continue to accelerate the commercialization of new products and innovation-led growth opportunities. I'm pleased to report that we are on track to achieve our $150 million in revenue from new product launches this year.

Speaker #1: These priorities remain fully aligned with our FY27 strategy and position us for both near-term performance and long-term value creation for our stakeholders. In closing, I'd like to thank our team for their commitment and our channel customers for their partnership.

Mike Frank: In closing, I'd like to thank our team for their commitment and our channel customers for their partnership. With this momentum, I'm confident we will deliver another strong year and create long-term value for all of our stakeholders. Thank you. With that, I'll now hand over to Bikash, who will summarize the group's performance before we open for Q&A. Bikash?

Speaker #1: With this momentum, I'm confident we will deliver another strong year and create long-term value for all of our stakeholders. Thank you, and with that, I'll now hand over to Bekash, who will summarize the group's performance before we open for Q&A.

Speaker #1: Bekash?

Speaker #2: Thank you, Mike. Before I close, let me summarize the quarter. UPL has delivered on its guidance with a strong performance despite a challenging environment. As stated earlier, this is our seventh consecutive quarter of revenue and EBITDA growth, and our strongest first-quarter net income in the past three years.

Bikash Prasad: Thank you, Mike. Before I close, let me summarize the quarter. UPL has delivered on its guidance with a strong performance despite challenging environment. As I stated earlier, this is our seventh consecutive quarter of revenue and EBITDA growth and our strongest Q1 net income in past three years. Further, we also improved on gearing ratios on year-on-year basis. Overall, this reflects the resilience of our integrated platforms, the discipline in our execution, and improving quality of our earnings. This is the foundation that underpins our confidence for the rest of the year. We are therefore guiding for a full-year revenue growth of 7% to 11% and EBITDA growth of 10% to 14% for FY27. With a proven track record of meeting and often beating our guidance target, we fully expect this to continue in this year.

Speaker #2: Further, we also improved on gearing ratios on a year-on-year basis. Overall, this reflects the resilience of our integrated platforms, the discipline in our execution, and the improving quality of our earnings.

Speaker #2: This is the foundation that underpins our confidence for the rest of the year. We are, therefore, guiding for full-year revenue growth of 7% to 11%, and EBITDA growth of 10% to 14% for FY2027.

Speaker #2: With a proven track record of meeting and often beating our guidance target, we fully expect this to continue in this year. However, given the continued uncertainties driven by the West Asia war and volatile weather conditions, including the El Niño impact in key regions, we remain cautious on the outlook of the agro-chemical segment and will continue to closely monitor the same.

Bikash Prasad: However, given the continued uncertainties driven by West Asia war and volatile weather conditions, including El Niño impact in key regions, we remain cautious on the outlook of the agrochemical segment and will continue to closely monitor the same. We are confident of our resilient core, led by our diversified geographical presence, backward integrated manufacturing facilities, and focused innovation to help us navigate through the macro risks, including geopolitical uncertainties, weather trends, currency volatility, and pricing pressure. Our priorities remain clear: accelerating profitable growth while continuing to deleverage. Finally, I would like to thank our team for their efforts and our valuable stakeholders for their continued trust and support. I'm confident of delivering our commitment in FY 2027. Thank you, and I look forward to your questions. With this, we are now open for Q&A.

Speaker #2: We are confident of our resilient core, led by our diversified geographical presence, backward-integrated manufacturing facilities, and focused innovation to help us navigate through macro risks, including geopolitical uncertainties, weather trends, currency volatility, and pricing pressure.

Speaker #2: Our priorities remain clear: accelerating profitable growth while continuing to deleverage. Finally, I would like to thank our team for their efforts and our valuable stakeholders for their continued trust and support.

Speaker #2: I’m confident of delivering our commitments in FY 2027. Thank you, and I look forward to your questions. With this, we are now open for Q&A.

Speaker #3: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Operator 2: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Saurabh Jain from HSBC. Please go ahead.

Speaker #3: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #3: Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Saurabh Jain from HSBC.

Speaker #3: Please go ahead.

Speaker #4: Hi. Thank you for the opportunity, and congratulations on a good set of performances in very challenging conditions. First question on the guidance—at the midpoint of your full-year guidance, the implied nine-month revenue and EBITDA growth stands at 9 to 12 percent.

Saurabh Jain: Hi. Thank you for the opportunity. Congrats for a good set of performance in very challenging conditions. First question on the guidance. At the midpoint of your full year guidance, the implied nine-month revenue and EBITDA growth stand at 9% to 12%. If I look at the Q1, a large part of the delivery is because of the Forex, which you gain about 10%. Second off for FY27, I would assume if currency remains here where it is today, there would be limited opportunities from a Forex gain. For the remainder of the nine months of FY27, can you split out your guidance in terms of how you're looking at volumes and pricing in particular?

Speaker #4: And if I look at the one queue, a large part of the delivery is because of the forex, which you gain about 10 percent.

Speaker #4: Now, in the second half of FY27, I would assume if currency remains where it is today, there would be limited opportunities from a forex gain.

Speaker #4: So, for the remaining nine months of FY27, can you split out your guidance in terms of how you're looking at volumes and pricing in particular?

Speaker #2: Yeah, thanks Saurabh for this question. You know that usually Q1 is our small quarter. Almost 18 percent to 19 percent of our full-year revenue comes in Q1.

Bikash Prasad: Yeah. Thanks, Saurabh, for the question. You know that usually Q1 is our small quarter. Almost 18%, 19% of full year revenue comes in Q1. This year in Q1, despite all these macro challenges and volume growth has been decent in our seeds platform, our super specialty, with softness in India crop protection and the global crop protection. The pricing variance was positive. When we share the outlook for the rest of the year, it's very difficult to predict the effect. For the rest of the quarters, we have considered like the constant currency. Whatever the currency rate is there for end of June, the same has been considered. We have not considered any appreciation or depreciation in the currency. This is that we have come up with the guidance.

Speaker #2: This year in Q1, despite all these macro challenges, volume growth has been decent in our seed platform and our super specialty, with softness in India crop production and global crop production.

Speaker #2: Although the pricing variance was positive, now when we share the outlook for the rest of the year, it's very difficult to predict FX. So, for the rest of the quarters, we have considered the constant currency.

Speaker #2: So whatever the currency rate was at the end of June, the same has been considered. We have not considered any appreciation or depreciation in the currency, and this is what we have come up with for the guidance.

Speaker #2: Now, for the rest of the year, if you look at it, our Seeds business will continue to grow. Our Super Specialty business, which has been growing not just for this quarter, but for several quarters, will continue to grow for several years as well.

Bikash Prasad: For the rest of the year if you look at it, our seeds business will continue to grow. Our super specialty business, which has been growing not just for this quarter but for several quarters and will continue to grow for several years. We do not see a challenge in terms of the volume and the growth in super specialty. The India business, obviously the weather is uncertain. If the rain is good, I think our Q2 will be strong and the full year performance also for the India business will be strong. If not, if the weather is uncertain and we might not have a strong volume growth, because of our focus on hyper scale brands, our innovation, our product mix, our margins will be much, much better in the India business.

Speaker #2: We do not see a challenge in terms of the volume and the growth in its super specialty. The India business—obviously the weather is uncertain, but if the rain is good, I think our Q2 will be strong, and the full-year performance also for the India business will be strong.

Speaker #2: Even if the weather is uncertain and we might not have strong volume growth, because of our focus on hyper-scale brands, our innovation, our product mix, our margins will be much, much better in the India business.

Speaker #2: Our global crop production business, as Mike alluded to, for the rest of the year our growth will be led by volume. So overall, I think we feel comfortable in giving this guidance of 7 to 11 percent for revenue and 10 to 14 percent for EBITDA.

Bikash Prasad: Our global crop protection business, as Mike Frank alluded to, for the rest of the year, our growth will be led by volume. Overall, I think we feel comfortable in giving this guidance of 7% to 11% for revenue and 10% to 14% for EBITDA. You know that these are currently the uncertain times. We have also been very cautious while giving this guidance.

Speaker #2: And you know that these are currently uncertain times. We have also been very, very cautious while giving this guidance.

Speaker #4: Yeah, that is helpful. But what is giving you the confidence in terms of volume recovery on the global GP business? Because I think that is the piece of your overall business which is going to drive, in a major way, your guidance.

Operator 1: Yeah, that is helpful. What is giving you the confidence in terms of volume recovery on the global CP business? I think that is the piece of your overall business which is going to drive, in a major way, your guidance. 1Q was a bit of a disappointment in terms of volume for UPL. What is giving you the confidence in terms of volume recovery that you foresee for the global CP business? Also, what would be your pricing assumptions for the full year?

Speaker #4: So, one quarter was a bit of a disappointment in terms of volume for UPL. What is giving you the confidence in terms of volume recovery that you are pursuing for the global GP business?

Speaker #4: And also, what would be your pricing assumptions for the full year?

Speaker #2: Yeah Saurabh I will just.

Bikash Prasad: Yeah, Saurabh Jain.

Speaker #3: Yeah thank you.

Saurabh Jain: Yeah.

Speaker #2: I'll take the question first, and then I will hand it over to Mike. A few points I just want to tell you now. Like I said, regarding the India business, we say that we don't want to compromise on our quality of the business.

Bikash Prasad: Take this first, then I will hand it over to Mike. A few points I just want to tell you now. Like for the India business, we say that we don't want to compromise with our quality of the business. We want to remain focused on retaining and improving our margins. You have seen in the last seven quarters our contribution margins have improved, our EBITDA margins have improved. We want to ensure that our margins are protected. Within the India business, we have protected the margins by doing the necessary pricing action. The seeds and specialty is a similar trajectory. In the crop protection business, I think one of the things that we have done is that we don't want a repeat of FY24 when the global prices reduced due to oversupply and channel had a higher level of inventory.

Speaker #2: We want to remain focused on retaining and improving our margin. You have seen in the last seven quarters, our contribution margins have improved. Our EBITDA margins have improved, and we want to ensure that our margins are protected.

Speaker #2: So, even in the India business, we have protected the margins by taking the necessary pricing actions. The seeds and specialty segments are on a similar trajectory.

Speaker #2: In the crop production business, I think one of the things that we have done is that we don't want a repeat of FY24, when global prices reduced due to oversupply and channel had a higher level of inventory.

Speaker #2: So we are also guiding our channel to be very, very cautious on building the inventory. So they are taking the inventory when needed.

Bikash Prasad: We are also guiding our channel to be very cautious on building the inventory. They are taking the inventory when needed in the farm. That is the guidance that we have also been giving to the channel. That's how we are seeing that the volume is low, I think it's also being very cautious, and overall, it will help us going forward. With this, I will hand it over to Mike.

Speaker #2: In the farm. So that is the guidance that we have also been giving to the channel. So that's how we were saying that the volume is lower, but I think it's also been very, very cautious, and overall it will help us going forward.

Speaker #2: With that, I will hand it over to Mike.

Speaker #3: Yeah, thanks Prakash, and Saurabh, thank you for the question. So, as we talked about earlier, we've been quite proactive in our pricing approach. You know, as we saw the conflict in the Middle East increase our cost of goods, especially on energy-intensive products, we were proactive in pricing that into the marketplace, which, of course, resulted in strong margin expansion in Q1.

Mike Frank: Yeah, thanks, Bikash. Saurabh, thank you for the question. As we talked about earlier, we've been quite proactive in our pricing approach. As we saw the conflict in the Middle East increase our cost of goods, especially on energy-intensive products, we were proactive in pricing that into the marketplace, which of course, resulted in strong margin expansion in Q1. As Bikash mentioned, Q1 is a very small quarter for us. In our global crop protection business, it's about 15% of our revenue, we ramp up as the year unfolds. While we do see both the channel and growers buying really close to the U season, I think, again, because of the conflict in the Middle East, because of some potential concerns about weather and El Niño, we are seeing the channel buy just in time.

Speaker #3: As Prakash mentioned, Q1 is a very small quarter for us. Our global crop protection business is about 15 percent of our revenue, so we ramp up as the year unfolds.

Speaker #3: And while we do see both the channel and growers buying really close to the new season, I think again because of the conflict in the Middle East, and because of some potential concerns about weather with El Niño, we are seeing the channel buy just in time.

Speaker #3: We do, though, fully expect, as the year unfolds, the growers are going to use the crop protection products they need to produce a crop.

Mike Frank: We do, though, fully expect, as the year unfolds, the growers are going to use the crop protection products they need to produce a crop. We will see the global demand for the crop protection products that we're in the business of flat to slightly up on a year-over-year basis. As you know, over the last 24 months, we've been gaining market share in this market. We are driving to beat the market, and once again, for the year, drive for market share growth, which gives us confidence we will see volume growth on the year. On the pricing and margin side, we've already adjusted our prices. We're now seeing many of our competitors also adjust up as they get into their mid-season.

Speaker #3: And so, we will see the global demand for the crop protection products that we're in the business of remain flat to slightly up on a year-over-year basis.

Speaker #3: As you know, over the last 24 months we've been gaining market share in this market, and so we are driving to beat the market.

Speaker #3: And once again, for the year, the drive for market share growth is what gives us confidence that we will see volume growth for the year.

Speaker #3: And on the pricing and margin side, we've already adjusted our prices. We're now seeing many of our competitors also adjust up as they get into their midseason.

Speaker #3: And so, again, I think we're very competitive going into the rest of the year, which gives us confidence that our momentum will continue.

Mike Frank: Again, I think we're very competitive going into the rest of the year, which gives us confidence that our momentum will continue.

Speaker #4: Okay, great. That was useful. My second question is on the India SAS business. The EBITDA margins have been at about 30 percent, which seems to be quite in contrast with how the other domestic players in India deliver in terms of their margin range.

Saurabh Jain: Okay, great. That was useful. My second question is on the India SS business. The EBITDA margins have been at about 30%, which seems to be quite in contrast with how the other domestic players in India deliver in terms of their margin range for the quarter. Is 30% kind of a margin range, do you think it's sustainable for rest of the year? Is it like a structural shift of margin that is happening, or is it just like a temporary one-off kind of a margins?

Speaker #4: For the quarter. So is 30 percent kind of a margin range do you think it's sustainable for rest of the year? Is it like a structural shift of margin that is happening or is it just like a temporary one off kind of a margins?

Speaker #2: I'll request Ravi, if he's there on the line, to kindly take this question. Ravi, are you there? No? In that case, I'll request Prakash to kindly respond.

Bikash Prasad: I'll request Ravi, if he's there on the line, to kindly take this question. Ravi, are you there? No, in that case, I'll request Bikash to kindly respond.

Ravi Cherukuri: Guys, can you hear me?

Speaker #3: Guys. Can you hear me?

Speaker #5: Yes, Mr. Ravi, you may go ahead.

Bikash Prasad: Yes, Mr. Ravi, you may go ahead.

Saurabh Jain: Yeah.

Speaker #3: Yeah, so no. That's a great question. 29% growth in EBITDA is not structural. A part of it is structural; a part of it is because the price increases we took were not immediate, because the cost flows in over time.

Saurabh Jain: Yeah. It's a great question. 29% growth in EBITDA is not structural. A part of it is structural, a part of it is because the price increases we took were not immediate because the cost flows in over time. The price increase we take only happens at the beginning of a quarter. You cannot take it mid-season once you've placed some product already. I would say a part of that EBITDA growth is structural because of the group improvement in portfolio and the improvement in profitability, but maybe about 8% to 10% of it is something which will normalize over time.

Speaker #3: But the price increase we take only happens at the beginning of a quarter — you cannot take it midseason. Once you have already paid for some product.

Speaker #3: So I would say a part of that EBITDA growth is structural, because of the improvement in portfolio and the improvement in profitability. But maybe about 8 to 10 percent of it is something which will normalize over time.

Speaker #4: No, my question was on EBITDA margin. So are you saying the 30 percent margin will normalize to about 21–22 percent kind of a margin range on a structural basis?

Saurabh Jain: No, my question was on EBITDA margin. Are you saying the 30% margin will normalize to about 21%, 22% kind of a margin range on a structural basis? The margins have been reported at 30%.

Speaker #4: The margins have been reported at 30%.

Speaker #3: EBITDA growth—I was talking about the EBITDA growth. Even the margins will normalize, but maybe not by as much as you said.

Ravi Cherukuri: I was talking about the EBITDA growth, but even the margins will normalize, but may not be by as much as you said. I would ask Bikash if he has a calculation to share the normalization expected in the margin. My response was to the EBITDA growth percentage.

Speaker #3: I would ask Prakash if he has a calculation to share on the normalization expected in the margin. My response was regarding the EBITDA growth percentage.

Speaker #4: Sure.

Saurabh Jain: Sure.

Speaker #2: Yes. So, Saurabh, if you look at the India crop production business, we have a seasonality in this business. Almost 65% of the revenue comes in the first half and 35% comes in the second half.

Bikash Prasad: Yes. Saurabh, if you look at the India crop production business, we have a seasonality in this business. Almost 65% of the revenue comes in H1, and 35% comes in H2. However, the period cost flows through uniformly. Typically, you will see that in H1 basis, you will have a higher EBITDA, you will have higher profitability, and in H2, you will see a lower EBITDA and lower profitability on a portfolio basis, if you look at it. Last year, I think we had ended at around, say, 15% of EBITDA margin for the India business. This year it will be much higher than the last year, but 30% is clearly is a seasonality investor. Two factors. One is the seasonality, because in Q1 our highest revenue comes in.

Speaker #2: However, the period cost flows through uniformly. So, typically, you will see that on an H1 basis, you will have a higher EBITDA, you will have higher profitability, and in H2, you will see a lower EBITDA and lower profitability.

Speaker #2: On a portfolio basis, if you look at it, last year I think we had rendered at around, say, 15 percent EBITDA margin for the India business.

Speaker #2: This year, it will be much higher than last year, but 30 percent is clearly a seasonality in between. So, two factors: one is the seasonality, because in Q1 our highest revenue comes in.

Speaker #2: Second, the pricing action that we took while the inventories were all sitting at the older cost for Q1, and the pricing of business took the pricing action ahead of the market.

Bikash Prasad: Second, the pricing action that we took while the inventories were all sitting at the older cost for Q1, and the pricing of business took the pricing action ahead of the market. That really helped us to improve our margin in Q1. This will normalize in Q2 and rest of the years.

Speaker #2: That really helped us to improve our margin in Q1, but this will normalize in Q2 and the rest of the year.

Speaker #4: Got it. I'll just complete by asking one question. Again, on the EBITDA margins for the India business, FY26 was about 17 percent. Now, would you expect a 7 to 8 percent delta of margin improvement for the full year FY27?

Saurabh Jain: Got it. I'll just complete by asking one question, that again, on the EBITDA margins for India business, FY26 was about 17%. Now, would you expect a 7% to 8% delta of margin improvement for the full year FY27? Coming to about 25 odd % or can it be lower?

Speaker #4: Coming to about 25 percent—or can it be lower?

Bikash Prasad: I think it will be better than the last year, but difficult to comment now.

Speaker #2: I think it will be better than last year, but it's difficult to comment now.

Speaker #4: Okay.

Speaker #2: We will get back to it, but definitely, it will be higher than last year, largely because of our excellent performance with the Hyper Steel brand.

Saurabh Jain: Okay.

Saurabh Jain: We will get back to you. Definitely it will be higher than the last year, largely because of our excellent performance on the IFERS brand and the branding initiatives that we have. It will be higher than the last year. Yeah.

Speaker #2: And the branding initiative that we have, so it will be higher—materially higher—than last year.

Speaker #4: Yeah, sure. Thank you. That is very helpful. I will join back the queue.

Saurabh Jain: Sure. Thank you. That is very helpful. I will join that. Thank you.

Speaker #5: Thank you. Ladies and gentlemen, in order to ensure that management is able to address questions from all participants on the conference, please limit your questions to two—one per participant.

Operator 2: Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to one per participant. The next question is from the line of Rohit Nagaraj from 360 One Capital. Please go ahead.

Speaker #5: The next question is from the line of Rohit Nagaraj from 361 Capital. Please go ahead.

Rohit Nagaraj: Thanks for the opportunity. First question is in terms of Latam. There are indications that because of the earlier low-cost inventory, there has been good amount of channel selling, which has happened. What is your perspective for the upcoming planting season for the same? I'll just leave in second one as well. We have increased the prices, again, crude has alleviated, input costs have alleviated. Are there any indications that the price reversal may happen in the times to come? Thank you.

Speaker #2: Thanks for the opportunity. So, first question is in terms of LATAM. There are indications that because of the earlier low-cost inventory, there has been a good amount of channel selling which has happened.

Speaker #2: So, what is your perspective for the upcoming planting season for the same? And I'll just squeeze in a second one as well. We have increased the prices, but again, crude has alleviated, input costs have alleviated.

Speaker #2: So, are there any indications that the price reversal may happen in the times to come? Thank you. Mike, I'll request you to take that question, please.

Bikash Prasad: Mike, I request you to take that question, please.

Speaker #3: Yeah, very good. So, yeah, thank you for the question. Look, I think, depending on what part of LATAM you're talking about, right now in Brazil there's not a lot of planting going on.

Mike Frank: Yeah. Very good. Yeah, thank you for the question. Look, I think depending on what part of the Latam you're talking about, right now in Brazil, there's not a lot of planting going on. They're finalizing the harvest of their second corn season, and of course, planting season will begin in September or October for the new soybean crop. This is the time of the year where the channel is starting to load for this upcoming season. Again, that gives us a lot of confidence. We know exactly kind of where our customers are at in terms of loading up for the next season. They've been, I would say, later to load this year. Again, I think everyone was watching what was happening in the Middle East from a conflict and a pricing standpoint. We are well-positioned from an order book standpoint.

Speaker #3: They're finalizing the harvest of their second corn season, and of course, planting season will begin in September or October for the new soybean crop. So this is the time of year when the channel is starting to load for this upcoming season.

Speaker #3: Again, that gives us a lot of confidence. We know exactly where our customers are in terms of loading up for the next season.

Speaker #3: They've been, I would say, a little slow to load this year. Again, I think everyone who's watching what is happening in the Middle East, from a conflict or pricing standpoint, we are well positioned from an order book standpoint.

Speaker #3: So, we are taking orders with our channel, and we're confident, again, that in Brazil we'll see strong volume in Q2, Q3, and Q4 for us.

Mike Frank: We are taking orders with our channel, we're confident again, that in Brazil we'll see strong volume in the Q2, Q3, and Q4 for us. That market is looking strong. As we talked about a little bit, Colombia and Argentina were off. Part of the Argentina situation for us, we're also focused on making sure that we're improving the quality of our business, we've slowed and stopped doing some low-margin business in Argentina. That part was intentional. We think the Colombia business will come back as the year unfolds. From a Latam perspective, again, I think a little bit of Q1 was a timing, again, it's a very small quarter for us, we've got a lot to play for as the year unfolds.

Speaker #3: And so that market is looking strong. As we talked about a little bit, Colombia and Argentina were off. Part of the Argentina situation for us, we're also focused on making sure that we're improving the quality of our business.

Speaker #3: And so, we've slowed and stopped doing some low-margin business in Argentina, so that part was intentional. We think the Colombia business will come back as the year unfolds.

Speaker #3: And so, from a LATAM perspective again, I think a little bit of Q1 was timing, but again, it's a very small quarter for us.

Speaker #3: And so, we've got a lot to play for as the year unfolds. From a pricing perspective, again, we're actually seeing now the rest of the industry kind of catch up to the pricing moves that we started in late March, early April.

Mike Frank: From a pricing perspective, again, we're actually seeing now the rest of the industry kind of catch up to the pricing moves that we started in late March, early April. If anything, we think that the industry is pushing prices up a little bit, again, in anticipation of the cost that every company is now seeing. I think there's a very low probability that prices are going to decline. Again, we're talking about minor low single to mid-single digit price increases, and so these are quite modest price increases, something that we would normally see in this industry on an annual basis. We're seeing those prices rise at this point in time. I don't think they're going to pull back as the year unfolds.

Speaker #3: And so, if anything, we think that the industry is pushing prices up a little bit again, in anticipation of the costs that every company is now seeing. And so I think there's a very low probability that prices are going to decline. Again, we're talking about minor, low single- to mid-single-digit price increases, and so these are quite modest price increases—something that we would normally see in this industry on an annual basis.

Speaker #3: And so we're seeing those prices rise at this point in time. I don't think they're going to pull back as the year unfolds.

Speaker #2: Sure. Thanks, and all the best.

Rohit Nagaraj: Sure. Thanks, and all the best.

Speaker #3: Thank you.

Mike Frank: Thank you.

Speaker #5: Thank you. The next question is from the line of Surya Narayan Patra from PhillipCapital India Private Limited. Please go ahead.

Operator 2: Thank you. The next question is from the line of Surya Narayan Patra from PhillipCapital (India) Private Limited. Please go ahead.

Speaker #4: Yeah thanks for the opportunity. My first question is on the on a macro aspect if you can talk about the likely implication that you would be thinking for your business because of the escalating Russia Ukraine war that is you address the other two but if you can address this one also that would be helpful.

Surya Narayan Patra Private Limited): Yeah, thanks for the opportunity. My first question is on a macro aspect. If you can talk about the likely implication that you would be thinking for your business because of the escalating Russia-Ukraine war. That is, you addressed the other two, but if you can address this one also, that would be helpful.

Speaker #2: Mike, I request you to kindly answer this question.

Bikash Prasad: Mike, I request you to kindly answer this question.

Speaker #3: Yeah, well, look, I think when the Russia-Ukraine war first started, there was a significant impact on supply chains and commodity prices, which have now, I think, abated to kind of a normal situation.

Mike Frank: Yeah. Well, look, I think when the Russia-Ukraine war first started, there was a significant impact on supply chains, on commodity prices, which have now, I think, abated to kind of a normal situation. I believe even if the war were to end sometime soon, I wouldn't anticipate a significant impact on the global grain trade or commodity prices. I think the more recent impact of the Middle East war is what we're now dealing with from a supply chain reliability standpoint, from a cost of goods standpoint. The ripples of the Iran war are now going through the industry. I think the Ukraine-Russia impact is really stabilized. However it unfolds or whenever it unfolds, I don't see a large impact on our business in the global crop protection industry.

Speaker #3: So, I believe even if the war were to end sometime soon, I wouldn't anticipate a significant impact on the global grain trade or commodity prices.

Speaker #3: And I think the more recent impact of the Middle East war is what we're now dealing with from a supply chain reliability standpoint and from a cost of goods standpoint.

Speaker #3: So, the ripples of the Iran war are now going through the industry. I think the Ukraine-Russia impact has really stabilized, and however it unfolds or whenever it unfolds, I don't see a large impact on our business in the global crop protection industry.

Speaker #2: Sure. Well, just if I can ask one more on the support form, can you just give, for the quarter, let's say, what is the split now between the captive and the other, and what is the growth that we would have seen for the non-captive support form business?

Surya Narayan Patra Private Limited): Sure. Just if I can ask one more on the Superform. Can you just give for the quarter, let's say, what is the split now between the captive and the other? What is the growth that we would have seen for the non-captive Superform business?

Speaker #3: Yeah, thank you for the question. So, I mean, it's not captive. What we call it as 'Ag' and 'Super Specialty.' So, Ag this quarter is 71 percent of the total revenue.

Bikash Prasad: Thank you for the question. It's not captive. It's what we call it as ag and super specialty. Ag, this quarter, is 71% of the total revenue, whereas super specialty is 29%. If you remember end of the last financial year, ag was 74%, and super specialty was the rest, right?

Speaker #3: Whereas super specialty is 29%. And if you remember, at the end of the last financial year, Ag was 74% and super specialty was the rest, right?

Speaker #3: So, that has further— the super specialty has further strengthened because of hyper growth in our super specialty business in this quarter.

Bikash Prasad: That is further, the super specialty has further strengthened because of hyper-growth in our super specialty business in this quarter.

Speaker #2: And over the next three to four years, do you expect this mix to further change and move towards, let's say, 55:45—55% ag and 45% super specialty?

Surya Narayan Patra Private Limited): Sure.

Bikash Prasad: Over the next 3 to 4 years, we expect this mix to further change and move towards, let's say, 55, 45. 55 ag and 45 super specialty.

Speaker #4: Okay. If you can just extend your thought process about the non-ag business, what is likely to drive this kind of change?

Surya Narayan Patra Private Limited): Okay. If you can just extend your thought process about the non-ag business, sir. What is likely to drive this kind of change?

Speaker #3: So we have been investing in a very niche technology platform and those platforms are the ones which are driving the growth. Because as we go upstream more value added product in those platforms for example i-nation or foster nation or also on some of the key applications whether in paint or in or in lubricant space or in flame detergents with that with contracts are the one which are good to keep on driving the revenues.

Bikash Prasad: We have been investing in very niche technology platforms. Those platforms are the ones which are driving the growth because as we go upstream, more value-added products in those platforms, for example, titration or fortification. Also, some of the key applications, whether in paint or in lubricant space or in flame retardants tagged with contracts, are the ones which will keep on driving the revenues.

Speaker #4: Sure, sure. Thank you, sir. Wish you all the best.

Surya Narayan Patra Private Limited): Sure. Thank you, sir. Wish you all the best.

Speaker #5: Thank you. The next question is from the line of Abhijit Akhela from Kotak Institutional Equities. Please go ahead.

Operator 2: Thank you. The next question is from the line of Abhijit Akella from Kotak Institutional Equities. Please go ahead.

Speaker #4: Yeah, good evening. Thank you so much for taking my questions. The gross margins seem to have increased by almost 300 bps year-on-year this quarter.

Abhijit Akella: Yeah, good evening. Thank you so much for taking my questions. The gross margins seem to have increased by almost 300 bps year on year this quarter. You did speak about the fact that the India business benefited from lower cost inventories. Would it be just possible to shed some color on how much in the consolidated level the benefit may have been because of lower cost inventory this quarter?

Speaker #4: And you did speak about the fact that the India business benefited from lower-cost inventories. Would it be possible to share some color on how much, at the consolidated level, the benefit may have been because of lower-cost inventories this quarter?

Speaker #2: Overall, looking at the contribution margin level, it has expanded by approximately 180 basis points, and this improvement is coming from all the platforms. All the platforms. The India business is a smaller portion of the total, but the maximum impact we have seen is in the India business.

Bikash Prasad: Overall, if you look at the contribution margin level, it has expanded by approximately 180 bps, and this improvement is coming from all the platforms. India business is a smaller portion of the total, but the maximum impact we have seen is in the India business, where the price variance is around 8% to 9%. Our seeds business also has a 13% to 14% price variance. The specialty has about 34%, 35% price variance. Crop protection is about 3%. This is total on the price impact on the sales, which is also driving the contribution margin expansion.

Speaker #2: Where the price variance is around 8 to 9 percent. Our seeds business also has a 13 to 14 percent price variance. The specialty has about a 34 to 35 percent price variance.

Speaker #2: And crop production is about 3%. It's the total price impact on the sales, which is also driving the contribution margin expansion.

Speaker #4: It's becoming ag.

Surya Narayan Patra Private Limited): If I may add.

Speaker #5: Sorry, sorry. If I may add, Bikash, I'd like to clarify that when we—it's not lower-cost inventory, but lower cost versus expected cost.

Ravi Cherukuri: Sorry. If I may add, Bikash, I'd like to clarify that it's not lower cost inventory, but lower cost versus expected cost. We took price increases based on the replacement cost of those raw materials coming in. Because we also have some amount of existing inventory, it blends in. The cost blends in over time. You have an opportunity to take the price increase only at the beginning of the season. It's not truly a low-cost benefit as it is a timing difference between price increase versus cost increase. Hope that clarifies things.

Speaker #5: Because we took price increases based on the replacement cost of those raw materials coming in. But because we also have some amount of existing inventory, the cost blends in over time.

Speaker #5: But you have an opportunity to take the price increase only at the beginning of the season, so it’s not truly a low-cost benefit, as it is a timing difference between the price increase versus the cost increase.

Speaker #5: Hope that clarifies things.

Speaker #4: Sure. No, that's very clear, and thank you for that color. The other thing I was just hoping to understand was, the cash flow statement shows a fairly significant increase in investments, which you've called out.

Abhijit Akella: Sure. No, that's very clear. Thank you for that color. The other thing that I was just hoping to understand was the cash flow statement shows a fairly significant increase in investments, which you've called out. Slide 19, INR 669 crores worth of investments. What exactly might these be?

Speaker #4: So, slide 19—₹669 crores worth of investments. What exactly might these be?

Bikash Prasad: Abhijit, if you recall in the capital market day, we had discussed about it. This investment is mainly the investment in Sinova, one of our associates in Brazil.

Speaker #2: Abhijit, if you recall, in the Capital Markets Day, we had discussed about it. This investment is mainly the investment in Sinoa, one of our associates in Brazil.

Speaker #4: Okay. So this is the same $87 million that was alluded to last time. I see. Okay, understood. And just a couple of others. One is the increase in other income this quarter.

Abhijit Akella: Okay. This is the same $87 million.

Bikash Prasad: Yes

Abhijit Akella: I see. Okay, understood. Just a couple of other. One is the increase in other income this quarter, what might that be because of? Depreciation seems a little bit lower. What's going on there?

Speaker #4: What might that be because of? And then depreciation seems a little bit lower—what's going on there?

Speaker #2: Depreciation is not lower; it is higher.

Bikash Prasad: Depreciation is not lower. It is higher.

Speaker #4: Sorry, I was referring to sequentially. Yeah.

Abhijit Akella: Sorry, I was referring to it sequentially. Yes.

Speaker #2: So, what is the question, Abhijit? Sorry.

Bikash Prasad: What is the question, Abhijit? Sorry.

Abhijit Akella: Sequentially, depreciation is down about 9%. Is that just a normal seasonal factor or something specific this quarter, and then on the other income?

Speaker #4: So, sequentially, depreciation is down about 9 percent. Is that just a normal seasonal factor or something specific this quarter? And then, on the other income...

Speaker #2: Yeah, I think it's just the overall. I think it will even out during the subsequent quarter.

Bikash Prasad: My idea is just overall, I think it will even out during the subsequent quarter.

Speaker #4: Got it. And just one last thing from my side. The guidance for EBITDA for this year, if I'm doing the math correctly, seems to imply a slightly, maybe flattish to slight decline in EBITDA margin for the year.

Abhijit Akella: Got it. Just one last thing from my side. The guidance for EBITDA for this year, if I'm doing my math correctly, it seems to imply a slight, maybe flattish to slight decline in EBITDA margin for the full year. Last year, I think we did 18.5%, maybe this year is flattish or slightly down. Is that correct? What exactly are you expecting now with the drivers behind that?

Speaker #4: Last year I think we did 18.5 percent. Maybe this year is flattish or slightly down. So is that correct? And what exactly are you expecting the drivers behind that to be?

Speaker #2: Over the last seven quarters, we have only improved, and we continue to remain focused on expanding our margins for all our businesses. This is just the EBITDA range that we have shared—between 10% to 14%. There are various assumptions we have taken, especially on the FX.

Bikash Prasad: Last 7 quarters, it has only improved, we continue to remain focused on expanding our margins for all our businesses. This is just a range, EBITDA range that we have shared within 10% to 14%. There are various assumptions we have taken on, especially on the CapEx. Broadly, I think EBITDA margin, we do not see the margins to go down. It will improve.

Speaker #2: But broadly, I think, regarding EBITDA margin, we do not see the margins going down. They will improve.

Speaker #4: Okay, understood. Thanks a lot. Thank you so much.

Abhijit Akella: Okay, understood. Thanks a lot. Thank you so much.

Speaker #5: Thank you. The next question is from the line of Imtiaz Shefferdin from Barclays. Please go ahead.

Operator 2: Thank you. The next question is from the line of Imtiaz Sheth from Barclays. Please go ahead.

Speaker #4: Thank you. One question with regard to your debt: I notice on your slide 18, you have a $500 million debt coming due in this current fiscal year—FY27—sustainability-linked loan.

Imtiaz Sheth: Thank you. Just one question with regards to your debt. I noticed on your slide 18, you have a $500 million that's coming due in this current FY27 sustainability-linked loan. Can you just give us some details in terms of when it's maturing and how are you looking to refinance that? Also you have another $500 million due in FY28. If you could just provide us some color on those. Thanks.

Speaker #4: Can you just give us some details in terms of when it's maturing, and how you are looking to refinance that? Also, you have another $500 million due in FY28.

Speaker #4: If you could just provide us some color on those, thanks.

Speaker #2: Yeah, sure. If you recall, last year in March we had a repayment obligation of $500 million. We had another obligation of $400 million in September of this year.

Bikash Prasad: Yeah, sure. If you recall, last year in March, we had a prepayment obligation of $500 million. We had another obligation of $400 million in September of this year, with additional $500 million in December. We had a total obligation of about $1.4 billion in March. We repaid first $500 million using our internal cash accruals. The next $400 million, which was due in September, we refinanced it and extended it for additional three years. At the same time, we also had three years of committed RCF that we put in place. The next obligation for us is in December 2026 of $500 million. In this financial year, the remaining obligation is only $500 million. We have a committed RCF line of $300 million. We have about $2 billion of uncommitted working capital line.

Speaker #2: With an additional $500 million in December, we had a total obligation of about $1.4 billion. In March, we repaid the first $500 million using our internal cash approvals.

Speaker #2: And the next $400 million, which was due in September, we refinanced and extended for an additional three years. At the same time, we also had a three-year committed RCF that we put in place.

Speaker #2: The next obligation for us is in December 2026, of $500 million. So, in this financial year, the remaining obligation is only $500 million.

Speaker #2: We have a committed RCF line of $300 million. We have about $2 billion of uncommitted working capital lines. And depending upon the market, I think it's early.

Bikash Prasad: Depending upon the market, I think it's early, depending upon the market, if needed, it can also be refinanced. We'll make the assessment in the next couple of months, and we'll update the market accordingly. We don't see any concerns in terms of meeting our obligations in December. We are quite comfortable with our internal cash flows, the liquidity, the lines that we have in place. We'll meet these obligations comfortably.

Speaker #2: Depending upon the market, if needed, it can also be refinanced. So, we'll make the assessment in the next couple of months and we'll update the market accordingly.

Speaker #2: But we don't see any concerns in terms of meeting our obligations in December. We are quite comfortable with our internal cash flows, the liquidity, and the lines that we have in place. We will meet these obligations comfortably.

Speaker #4: Thank you. Just one more question, if I may. How many days of inventory do you carry for your raw materials right now?

Imtiaz Sheth: Thank you. Just one more question, if I may. How many days of inventory do you carry for your raw materials right now?

Bikash Prasad: Just beyond the 9 months.

Speaker #2: Imtiaz just beyond the line.

Imtiaz Sheth: Okay.

Speaker #4: Oh okay.

Speaker #2: Yeah, 50/50 with that. I'll request Raj to kindly respond to that. Raj, please go ahead.

Bikash Prasad: 50/50 generally. I'll request Raj to kindly respond to that. Raj, please go ahead.

Speaker #3: Yeah, so this is the total inventory, which is what we have in the presentation. But generally, it is 40/60 or 45/55. So, 45 is the raw material.

Raj Tiwari: Yeah. This is the total inventory is what we have in the presentation, but generally it is 40/60 or 45/55. 45 is the raw material, and balance is finished good lying in the market. That's what I can say in terms of absolute inventory.

Speaker #3: And the balance is finished goods lying in the market. So that's what I can say in terms of absolute inventory.

Speaker #4: Sorry—45, as in 45 days.

Imtiaz Sheth: Sorry, 45 as in 45 days?

Speaker #3: Forty-five percent of the total inventory is raw material, and the balance is business finished goods.

Raj Tiwari: 45% of the total inventory is raw material, and balance is business.

Imtiaz Sheth: Great. Okay, this 45% of your inventory you say is raw material. What is that good for? How many months of production?

Speaker #4: Okay. But this 45 percent of your inventory, as you say, is raw material. What is that good for? How many months of production?

Bikash Prasad: We have generally 90 days of cover for raw materials.

Speaker #3: So, we have generally 90 days of cover for raw materials.

Imtiaz Sheth: Okay. Right now your raw material inventory covers you for about 90 days of production.

Speaker #4: Okay. So right now your raw so right now your raw material inventory covers you for about 90 days of production.

Speaker #2: Yes. Yes that's right.

Bikash Prasad: Yes. That's right.

Speaker #4: Okay, thank you. That's all from me for now.

Imtiaz Sheth: Okay. Thank you. That's all from me for now.

Speaker #5: Thank you. Ladies and gentlemen, due to time constraints, we will take that as the last question of the day. And now, I would like to hand over the conference to Mr. Anurag Gupta.

Operator 2: Thank you. Ladies and gentlemen, due to time constraints, we take that as the last question of the day. Now I would like to hand over the conference to Mr. Anurag Gupta.

Speaker #2: Thank you. Thank you all for the questions and the responses provided by the UPL management team. As I mentioned earlier, we have an update for all of you.

Anurag Gupta: Thank you. Thank you all for the questions and the responses provided by the UPL management team. As I mentioned earlier, we have a message for all of you. I request Bikash to please share the same.

Speaker #2: I request Prakash to please share the same.

Speaker #3: Yeah, so before we conclude today's call, I would like to share an update on a change in leadership. After many years of dedicated service to the company, Mike Frank has decided to step down from his role as the CEO of UPL Corp.

Bikash Prasad: Yeah. Before we conclude today's call, I would like to share an update on changing leadership. After many years of dedicated service to the company, Mike Frank has decided to step down from his role as the CEO of UPL Corp, our global crop production business, with an intention to relocate back to the United States in view of his personal commitments after completing a successful tenure of four and a half years. On behalf of the board, the management team, and all our colleagues, I would like to sincerely thank Mike for his invaluable contributions over the years. His leadership, commitment, and passion have played a significant role in advancing UPL's transformation journey through a sharper focus on innovation, customer centricity, operational excellence, and sustainability.

Speaker #3: Our global crop production business. It's an intention to relocate back to the United States in view of his personal commitments, after completing a successful tenure of four and a half years.

Speaker #3: On behalf of the Board, the management team, and all our colleagues, I would like to sincerely thank Mike for his invaluable contributions over the years.

Speaker #3: His leadership, commitment, and passion have played a significant role in advancing UPL's transformation journey through a sharper focus on innovation, customer centricity, operational excellence, and sustainability.

Speaker #3: His leadership has strengthened the company's global crop production business and further reinforced UPL's commitment to delivering differentiated solutions that create long-term value for farmers, customers, and other stakeholders worldwide.

Bikash Prasad: His leadership has strengthened the company's global crop production business and further reinforced UPL's commitment to delivering differentiated solutions that create long-term value for farmers, customers, and other stakeholders worldwide. We are grateful for his many contributions and wish him every success in his future endeavors. The business remains well-positioned, supported by a strong leadership team and a clear strategic direction, and we remain fully focused on executing our priorities and delivering value to all stakeholders. Before we close today's call, I would like to invite Mike to share a few words on this.

Speaker #3: We are grateful for his many contributions and wish him every success in his future endeavors. The business remains well positioned, supported by a strong leadership team and a clear strategic direction.

Speaker #3: And we remain fully focused on executing our priorities and delivering value to all stakeholders. But before we close today's call, I would like to invite Mike to share a few words on this.

Speaker #1: Well, thank you, Prakash, for those kind words. Look, UPL is an amazing company, and it's really been an honor to lead UPL Corporation over the past almost five years.

Mike Frank: Well, thank you, Bikash, for those kind words. Look, UPL is an amazing company, and it's really been an honor to lead UPL Corporation over the past almost five years. I do feel positive that the business has strong momentum, and the organization is set for continued growth. Most importantly, the leadership team and the people across UPL are set to successfully drive UPL Corp into the future. I want to thank the board of directors, Jai and Vikram, and the entire organization for their support, and I wish everyone all the best. Thank you very much.

Speaker #1: I do feel positive that the business has strong momentum and the organization is set for continued growth. But most importantly, the leadership team and the people across UPL are set to successfully drive UPL Corp into the future.

Speaker #1: I want to thank the Board of Directors, Jay and Vikram, and the entire organization for their support. I wish everyone all the best.

Speaker #1: Thank you very much.

Speaker #2: Thank you, Mike. On behalf of UPL Limited, that concludes this conference. Thank you all for joining us. For further queries and clarifications, please feel free to contact me.

Anurag Gupta: Thank you, Mike. On behalf of UPL Limited, that concludes this conference. Thank you all for joining us. For further queries and clarifications, please feel free to contact me. You may now please disconnect your lines. Thank you.

Speaker #2: You may now please disconnect your lines. Thank you.

Operator 2: Thank you.

Imtiaz Sheth: Thank you.

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