On June 04, 2025, Fitch Ratings revised the Long-Term Issuer Default Rating (IDR) outlook on UPL Corporation Limited ("UPL Corp"), a wholly-owned subsidiary of UPL Limited, from “Negative” to “Stable”. Fitch also affirmed UPL Corp's IDR at 'BB' and its senior unsecured rating and notes at 'BB'.

This outlook revision is attributed to an improvement in UPL Limited's financial profile.

Key factors contributing to the improved financial profile and future expectations include:

• Significant deleveraging in the financial year ended March 2025 (FY25), supported by healthy EBITDA recovery, a shorter working-capital cycle, USD350 million (₹2,923.2 crore) from the sale of a stake in the seeds business, and around USD200 million (₹1,670.4 crore) from rights issue proceeds.
• Fitch estimates UPL's FY26 EBITDA leverage will improve to 4.1x (from 5.2x in FY25) and EBITDA interest coverage will rise to 2.8x (from 2.1x in FY25).
• UPL is expected to utilize a portion of its cash balance from end-FY25 to repay debt.
• Further equity proceeds of USD200 million (₹1,670.4 crore) are incorporated for FY26 from the ongoing rights issue.
• Fitch forecasts UPL's FY26 adjusted EBITDA to grow by 13% to approximately ₹8,200 crore, with the margin expanding to 16%-17% during FY26-27 (from 15.5% in FY25).
• The FY25 EBITDA margin increased by 5 percentage points to 15.5%, driven by an improved product mix and reduced production and purchase costs.

Despite these improvements, Fitch believes UPL's revenue growth and margin rebound in the next three years will be constrained by slow product price recovery due to prevailing manufacturing overcapacity in China. The EBITDA margin is unlikely to return to pre-FY24 levels of 19-20% within this period.

UPL maintains a robust market position as the world's largest company focused on the post-patent crop-protection market segment, boasting a well-diversified product portfolio, extensive geographical presence, and significant backward integration.

The company exhibits adequate liquidity, with estimated readily available cash of ₹8,900 crore at FYE25, undrawn short-term bank facilities of ₹15,900 crore, and over ₹1,600 crore from rights issue proceeds expected in FY26.

UPL redeemed USD400 million (₹3,340.8 crore) of subordinated perpetual capital securities in May 2025 and is expected to be able to repay the ₹4,300 crore term loan due in March 2026.