UPL Limited has informed the Exchange about revision in credit rating outlook by Moody s for UPL Corporation Limited.
UPL · price
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Awaiting price reaction for this filing.
Moody's has affirmed the Ba2 corporate family rating and senior unsecured debt rating of UPL Corporation Limited (wholly owned subsidiary of UPL Limited), but revised its outlook from 'Negative' to 'Stable' — a positive credit signal. The upgrade in outlook is driven by improving working capital management, $400 million in perpetual notes repaid in May 2025, and expected decline in gross debt/EBITDA leverage to around 4.0x by March 2027 (from approximately 5.0x at March 2025). UPL reported FY25 revenue of INR460 billion ($5.5 billion) and EBITDA of INR68.8 billion ($813 million). Revenue growth is expected at ~4% in FY26, tapering to 1.5–2%, with EBITDA margins improving toward 18% over the next 2–3 years. Liquidity remains adequate with $637 million cash as of June 2025 and expected operating cash flow of $1.6 billion through March 2027.
The outlook revision from Negative to Stable is a credit-positive development, reducing the near-term risk of a downgrade and signaling improving financial health. This should be favorably received by investors, potentially lowering future borrowing costs and reflecting positively on UPL's stock sentiment.