As of February 23, 2026, UPL Ltd shares have experienced a sharp decline, falling as much as 10% to 14% to trade near ₹648.60. This significant sell-off follows the board's approval of a major corporate restructuring plan announced after market hours on Friday, February 20.

Key Developments and Analysis

The primary driver for the current share movement is a three-step group reorganisation scheme designed to unlock shareholder value and address long-standing debt concerns.

• Restructuring Plan: UPL is consolidating its global crop protection operations (UPL SAS and UPL Corp) into a new, independently listed entity named UPL Global. The existing UPL Limited will remain as a holding company for the formulations business, R&D, and other units like Advanta and SUPERFORM.
• Analyst Downgrades: Nuvama Institutional Equities downgraded the stock from "Buy" to "Hold" with a revised target price of ₹816. The downgrade is attributed to unresolved leverage concerns, potential equity dilution (estimated at 11.73 crore new shares), and the risk of a "holding company discount" on valuations.
• Debt Status: While the restructuring creates focused business verticals, the overall debt level remains largely unchanged. UPL Global is expected to carry a net debt of approximately ₹19,000 crore, while the standalone holding business will hold roughly ₹3,200 crore.
• Financial Performance: Earlier this month, UPL reported Q3 2026 results with revenue growth of 12% to ₹12,269 crore. However, consolidated net profit for the quarter saw a 52.2% YoY decline to ₹396 crore, despite an improvement in volume momentum. 

Market Sentiment

Investors are currently digesting the implications of the demerger, which is expected to take 12 to 15 months to complete. While some analysts like Antique maintain a "Buy" rating (target ₹880) based on medium-term deleveraging catalysts like the upcoming Advanta IPO, the immediate market reaction has been bearish due to the complexity of the scheme and near-term dilution risks.