BENGALURU (Reuters) - Agrochemicals maker UPL reported a surprise quarterly profit on Monday as revenue fell less than expected amid inventory destocking, sending its shares up 6.4%.

The herbicide and insecticide maker said revenue from operations fell about 15% to 140.78 billion rupees, marking its fourth straight quarter of decline due to inventory destocking and soft demand, but beat Street expectations of 122.39 billion rupees, according to LSEG data.

Volumes recovered compared to the third quarter, largely led by strong sales of the company's high-margin sustainable agriculture portfolio, which contributed to 36% of its crop protection revenue versus 29% last year, UPL said.

That helped UPL post a net profit of 400 million rupees ($4.8 million) for the quarter ended March 31, compared with analysts' expectations of a loss of 3.33 billion rupees. The company reported a profit of 7.92 billion rupees a year ago.

UPL said it expects 4%-8% growth in revenue in fiscal 2025 and earnings before interest, tax, depreciation and amortization (EBITDA) growth of more than 50% for the period.

Agrochemical and fertilizer companies in India, including Coromandel International and SRF, faced a lackluster fourth quarter, largely due to destocking of inventory - the process of emptying out excess inventory levels following low demand.

Water shortages in southern India also contributed to the overall lack of demand.

"We expect a return to growth and normalization in margins driven by the agchem market returning to normality in fiscal 2025," said Mike Frank, chief executive of UPL Corporation, UPL's Mauritius-based unit.

Analysts are optimistic about the fiscal 2025 outlook for domestic agri-input firms on expectations of a better monsoon and higher nutrient-based subsidy - a government programme that subsidises fertilisers depending on their nutrient content - in the first half of 2025.

($1 = 83.5061 Indian rupees)

(Reporting by Yagnoseni Das in Bengaluru; Editing by Janane Venkatraman and Sonia Cheema)