...UPL Corporation Limited's (UPL Corp) Long-Term Issuer Default Rating (IDR) is aligned with that of its parent, UPL Limited (UPL), under Fitch Ratings' Parent and Subsidiary Linkage Rating Criteria. The Negative Outlook reflects our estimate that UPL's EBITDA interest coverage for the financial year ending March 2026 (FY26) could remain below the negative sensitivity of 3.0x, despite EBITDA leverage improving to below 4.5x. We believe there is risk to UPL's EBITDA margin recovery, given the manufacturing overcapacity in China. The ratings incorporate the group's robust market position in the post-patent segment of crop- protection chemicals and its healthy product and geographical diversification. We see UPL's significant backward integration as a key competitive advantage, but this may shrink in case of persistent oversupply from China....
