Ugadi means the commencement of a new era. It denotes the beginning of Kali Yuga, says Bhagawan Sri Sathya Sai Baba about the festival.

Ugadi is the New Year's Day for the people of Andhra Pradesh, Karnataka and Maharashtra. While this festival is known as Ugadi in Andhra Pradesh and Karnataka the same is celebrated as Gudi Padva in Maharashtra. According to Chandramana, Ugadi is celebrated on the bright fortnight ('Shukla Paksha') of the first month ('Chaitra Masa') in the first season of the year i.e., spring ('Vasanta-Ritu'). The word ‘Ugadi’ is derived from the Sanskrit word ‘Ugadi’, which means ‘beginning of a new Yuga or era’. Legend has it that this was the day on which Lord Krishna shed His mortal coil signifying the end of the Dwapara Yuga and the commencement of the Kali Yuga.

It is widely believed that this festival brings new hopes and its fulfillment. Ugadi marks the beginning of a new Hindu lunar calendar with a change in the moon's orbit. On Ugadi day, people wake up before the break of dawn and take a head bath after which they decorate the entrance of their houses with fresh mango leaves. The green mango leaves tied to the doorway signify a good crop and general well being. It is noteworthy that one uses mango leaves and coconuts (as in a 'Kalasam', to initiate any puja) only on auspicious occasions to propitiate gods.

People also splash fresh cow dung water on the ground in front of their house and draw colourful floral designs. This is a common sight in every household. People perform the ritualistic worship to God invoking his blessings before they start off with the New Year. They pray for their health, wealth and prosperity and success in business too. Ugadi is also the most auspicious time to start new ventures

On this day, people chant mantras and the pundits make predictions for the coming year traditionally known as "Panchangasravanam" or listening to the yearly calendar. This “Panchangasravanam” is normally arranged in temples and other important places where people converge in large numbers. Another important aspect of this festival is its special delicacies. "Ugadi Pachchadi" is one such dish that has become synonymous with this festival.

Bhagawan adds, “It is a practice among rural folk to eat what is called Ugadi Pachchadi (Ugadi Chutney). This is made from Neem flowers, mango juice, honey, sugar (jaggery) and other ingredients with different tastes. The inner significance of this preparation is to indicate that life is a mixture of good and bad, joy and sorrow, and all of them have to be treated with equanimity. Everyone should make resolution that he would face calmily whatever happens, accepting with good grace. Welcome everything. Do not bemoan over anything. Consider everything as for your own good. This is the primary purpose of the Yugadi festival.

In Andhra Pradesh, eatables such as "Pulihora", "Bobbatlu" and preparations made with raw mango go well with the occasion. In Karnataka too, similar preparations are made but called "Puliogure" and "Holige". The Maharashtrians make "Puran Poli" or sweet 'Rotis'.

“The Kali Yuga (the present era) started in the year Pramadi, the month named Sravana, the fortnight named Bahula, and the day called Ashtami. According to the English Calendar, this would be described as 20th February 3102 years before the advent of Christ. In order to bring out this aspect of the commencement of the new Yuga on 20th February 3102 B.C., our ancestors have been calling that day ‘the day of the beginning of a new era (Ugadi)” Since this was the commencing day of a new Yuga, it was called Ugadi. When looked at from this angle, we should also learn a different aspect, although it is not very pleasant. This particular day, Ugadi, is also the day on which Krishna gave up his mortal body in a sacred place of pilgrimage called Prabahatsa near Dwaraka.

Thousands of devotees from the length of breadth of Andhra Pradesh and devotees from Karnataka flock into the Divine Presence to celebrate the advent of New Year in His Holy Presence. The proceeding starts with the commencement of musical offerings by students of Sri Sathya Sai Institute of Higher Learning. This year students presented skits in the Divine Presence in Sai Kulwant Hall depicting the importance and inner significance of the festivity. To the thousands gathered in Sai Kulwant Hall they beautifully enacted and narrated significance of ‘Panchangasravanam’ and ‘Ugadi Pachchadi’ two major attractions of the festivity. Bhagawan delivers His Divine Discourse enlightening the gathered devotees about the inner significance of the festivity. Towards the end of the programme Bhagawan blesses devotees with distribution of Prasadam.