Shares of UPL Ltd rose about 5 percent to ₹514 on Monday after a brokerage report highlighted the growth potential of Superform, the subsidiary of the company’s specialty chemicals business.
The broker said Superform is targeting revenue growth of 20-23 percent annually, with phosphorus and cyanide chemicals emerging as key growth drivers.
Superform’s business will also expand into battery chemicals, seeking to capitalize on demand for specialty materials and opportunities to diversify its global supply chain beyond China.
“Superform bis is looking to re-accelerate growth specifically-chemicals, targeting a contribution of 45-50 percent to total revenue over time, while clocking a revenue CAGR of 20 percent, with the segment likely to outpace overall business growth”, said the report of Motilal Oswal Financial Services.
He added that Superform plans annual capital expenditures of $100 million to $125 million through FY30 to support its expansion plans.
UPL’s global manufacturing and distribution network, which includes more than 40 facilities in 11 countries and is present in more than 130 countries, gives Superform access to international customers without the need to build a distribution network from scratch.
The broker also highlighted the backward and forward integration of the business, which it said could strengthen the resilience of the supply chain, reduce dependence on external suppliers and improve cost competitiveness.
The China plus 1 trend is expected to provide additional growth opportunities, as customers seek alternatives to Chinese suppliers in the specialty chemicals category.
Superform is increasing its cyanide capacity from around 17,000 tonnes to 50,000 tonnes, with long-term ambitions to reach around 200,000 tonnes, according to the report.
Superform is also exploring opportunities in battery materials with commercialization targeted in the next 18-24 months, with Superform involved with electrolyte manufacturers seeking suppliers outside of China. The company is also exploring sodium-ion battery materials, including cyanide-based Prussian Blue and Prussian White cathode materials used in energy storage applications.
Motilal Oswal estimates UPL’s revenue, EBITDA and adjusted profit after tax to grow at compound annual growth rates of 7 per cent, 9 per cent and 28 per cent respectively till FY28.
Published on October 12, 2026