Intimation of revision in credit rating outlook by S&P for UPL Corporation Limited.
Awaiting price reaction for this filing.
S&P Global Ratings revised its outlook on UPL Limited's wholly owned subsidiary UPL Corporation from 'Negative' to 'Stable' while affirming its 'BB' long-term issuer credit rating. The improvement is driven by UPL Corp's proactive debt reduction, including a US$250 million term loan prepayment, a US$350 million minority stake sale in Advanta Enterprises, and a US$400 million rights issue (half already received). S&P expects UPL Corp's FFO-to-debt ratio to rise to about 18% in fiscal 2026 from 13% in fiscal 2025, and around 20% by fiscal 2027, supported by a gradual recovery in the global agrochemical industry and better working capital management. Fiscal 2025 results exceeded expectations, with EBITDA 13% higher than S&P's estimate, and revenue of INR466 billion with INR82.4 billion adjusted EBITDA.
Positive signal for shareholders — the outlook revision reduces near-term downgrade risk and reflects improving financial health. The stronger credit profile could ease future borrowing costs and supports UPL Corp's ability to meet upcoming US$500 million March 2026 maturities comfortably.