UPL Stock Surges 5% as Speciality Chemicals Subsidiary Eyes Major Growth

UPL Ltd experienced a notable 5 percent rise in share price on Monday, reaching ₹514, following positive brokerage assessments of its speciality chemicals subsidiary Superform's growth trajectory.

According to a Motilal Oswal Financial Services report, Superform is pursuing an ambitious annual revenue growth target of 20-23 percent, with phosphorus and cyanide chemistries positioned as primary growth engines. The subsidiary aims to increase its contribution to total company revenue to 45-50 percent over time, outpacing the overall business growth rate.

The expansion strategy includes significant capacity scaling in cyanide production, growing from approximately 17,000 tonnes to 50,000 tonnes, with long-term plans targeting around 200,000 tonnes. Superform has allocated $100 million to $125 million in annual capital expenditure through fiscal year 2030 to support these initiatives.

Superform is also making moves into the battery materials sector, with commercialisation expected within 18-24 months. The company is engaging with electrolyte manufacturers looking for suppliers outside China and exploring sodium-ion battery materials, including Prussian Blue and Prussian White cathode materials for energy storage applications.

The subsidiary benefits from UPL's extensive global infrastructure of over 40 manufacturing facilities across 11 countries and presence in more than 130 markets, eliminating the need to build distribution networks from scratch. Analysts believe the ongoing shift away from Chinese suppliers in specialised chemicals presents additional growth opportunities for Superform.