Intimation of revision in credit rating outlook by Fitch for UPL Corporation Limited.
Awaiting price reaction for this filing.
Fitch Ratings has revised the outlook on UPL Corporation Limited (UPL's wholly owned Mauritius-based subsidiary) to 'Stable' from 'Negative', while affirming the Long-Term Issuer Default Rating (IDR) at 'BB'. The outlook revision is driven by an improvement in UPL's financial profile, with FY25 EBITDA leverage falling sharply to 5.2x and expected to improve to 4.1x in FY26. Key deleveraging drivers include healthy EBITDA recovery, USD350 million from a seeds business stake sale, and USD200 million of rights issue proceeds. UPL also redeemed USD400 million of subordinated perpetual capital securities in May 2025. Fitch forecasts FY26 Fitch-adjusted EBITDA growth of ~13% to around INR82 billion, with margin expansion to 16-17%.
Positive for shareholders — the outlook upgrade signals improving creditworthiness and lower near-term default risk, though the 'BB' rating remains in speculative (non-investment) grade territory. This may help reduce borrowing costs and improve investor confidence in UPL's deleveraging path.