UPL Limited’s employee costs fell about 15% year-on-year in Q2 FY27, driven by a shift of jobs to its Global Business Services (GBS) centres in Pune and Mauritius from higher-cost jurisdictions, Chief Financial Officer Bikash Prasad told analysts on the company’s earnings call on 2 November 2026.
Prasad cited three factors behind the decline: the shift of work to global business services centres in Pune and Mauritius, with GBS headcount up nearly three times in two years; foreign-exchange tailwinds from currency devaluation in some jurisdictions; and benefits from a target operating model review whose costs were booked in the prior year.
“Part of the current level is sustainable, with further cost-tightening initiatives underway,” Prasad said on the earnings call.
The agrochemicals and seeds major reported Q2 FY27 revenue of Rs 11,860 crore, down 1% year-on-year, with volumes down 10%, pricing flat and currency contributing 9%. EBITDA grew 5% to Rs 2,312 crore, with contribution margins expanding 100 basis points to 42.9%. The quarter marked UPL’s eighth consecutive quarter of margin and EBITDA growth.
Net working capital stood at 145 days in Q2 FY27, up 27 days year-on-year, while total net debt was approximately $3 billion at the end of September 2026.
Prasad also commented on the half-year performance. “Our first half performance underscores the resilience of UPL’s earnings in a challenging environment. Eight consecutive quarters of margins and EBITDA growth reflect our continued focus on quality of earnings, sharper portfolio decisions and firm cost and capital discipline,” he said in the company’s results statement.
UPL reaffirmed its full-year FY27 guidance of 7% to 11% revenue growth and 10% to 14% EBITDA growth. It also retained its medium-term net debt to EBITDA target of 1.5x.
Global Capability Centres (GCCs) and Global Business Services (GBS) centres have become a prominent channel for Indian and multinational companies to consolidate finance, HR and technology roles in India, which currently hosts around 50% of all global GCCs, according to industry data.
