UPL staff costs fall 15% as roles shift to Pune, Mauritius hubs
- UPL cut employee-related costs by around 15% year on year in Q2 FY27.
- UPL has nearly tripled the combined workforce at its GBS centers in two years.
- UPL runs GBS centers in Pune, Colombia and Mauritius.
- UPL said foreign exchange movements also contributed to the decline.
MUMBAI, INDIA — Agrochemicals company UPL cut its employee-related costs by around 15% year on year in the second quarter of fiscal 2027, partly by moving roles from higher-cost markets to its global business services (GBS) centers in Pune and Mauritius. The company has nearly tripled the combined workforce at its GBS centers over the past two years.
UPL has not disclosed the current headcount at the centers or the exact savings from moving the roles.
Three reasons for the drop
Group chief financial officer Bikash Prasad attributed the decline to the relocation of roles to lower-cost markets, favorable foreign exchange movements and savings from changes to the company’s target operating model, HR Katha reported on Nov. 4. He spoke on UPL’s second-quarter earnings call.
UPL runs three GBS centers. Pune is the largest, the Colombia center supports Latin America and Mauritius serves Africa and Europe.
The shift transferred a significant volume of work from higher-paid geographies, the report said. It forms part of a broader change in UPL’s operating model.
More than a cost play
The centers are also meant to strengthen internal controls and build centers of excellence, rather than serve only as cost-reduction hubs.
UPL incurred higher employee-related expenses in the previous year while it carried out organizational changes. The benefits of those changes are now showing in its latest results.
The company cautioned that currency movements also contributed to the decline, so not all of the reduction may be recurring savings. It plans to keep pursuing cost optimization across employee expenses and other areas.
Margins up as revenue holds flat
UPL’s second-quarter revenue fell 1% to ₹11,860 crore (about US$1.26 billion), while earnings before interest, taxes, depreciation and amortization rose 5% to ₹2,312 crore (about US$246 million), Agribusiness Global reported. Lower selling, general and administrative costs helped offset higher input costs, the company said.
“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,” Prasad said.
What it means for buyers
UPL’s numbers show the case many companies make for an in-house hub or global capability center (GCC): move work from high-cost markets, then add controls and expertise on top. The currency caveat is a reminder that a headline cost cut can mix structural savings with exchange-rate gains.
Companies weighing a captive center against labor arbitrage through a provider can compare options on OA’s list of top Indian BPO companies.
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