Biocon Biologics has received a favorable rating action from Fitch Ratings, with the international credit rating agency revising the company's outlook to positive while maintaining its existing credit rating. The company announced this development through an official press release on February 7, 2026.

Rating Action Details

Fitch Ratings has affirmed Biocon Biologics' Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' while simultaneously changing the outlook from stable to positive. The rating agency has also affirmed the 'BB' rating on the company's USD 800 million secured notes issued by its subsidiary, Biocon Biologics Global Plc.

Credit Rating Rationale

According to Fitch Ratings, the positive outlook revision reflects the agency's expectation of a sustained reduction in Biocon Limited's financial leverage. This improvement follows the company's recent equity issuance, with proceeds used to reduce liabilities. The positive outlook indicates that Fitch expects potential upward rating momentum for Biocon Biologics over the medium term.

The maintained 'BB-' IDR places Biocon Biologics in the non-investment grade category, also known as speculative grade. This rating level indicates that while the company has adequate capacity to meet its financial commitments, it faces ongoing uncertainties that could affect its ability to service debt obligations.

Company Profile and Market Position

Biocon Biologics Limited operates as a fully integrated, global biosimilars company and subsidiary of Biocon Ltd. The company serves over 6.3 million patients across 120+ countries, focusing on enabling affordable access to high-quality biosimilars. The company has commercialized 10 biosimilars from its portfolio, addressing patient needs in key emerging markets and advanced markets including the U.S., Europe, Australia, Canada, and Japan.

Market Significance

This rating action by Fitch comes as Biocon Biologics continues to operate in the competitive biosimilars and biologics market. The positive outlook revision may enhance the company's access to capital markets and potentially reduce borrowing costs, providing additional financial flexibility for business operations and growth initiatives. The company maintains a pipeline of 20+ biosimilar assets across diabetology, oncology, immunology, ophthalmology, bone health and other non-communicable diseases.

Biocon Limited has successfully completed the buyback of commercial papers worth Rs. 2,000.00 crore on January 30, 2026. The company fulfilled its payment obligations for two separate commercial paper issues under SEBI Master Circular compliance, marking the completion of a significant debt management exercise.

Buyback Transaction Details

The commercial paper buyback involved two distinct ISINs with different face values and purposes. The company completed both transactions on the same date, demonstrating efficient debt management capabilities.

Fund Utilization and Purpose

The commercial papers were issued for specific corporate purposes as disclosed in the original offer documents. The larger issue of Rs. 1,800.00 crore was utilized for acquisition of equity shares in subsidiary, while the Rs. 200.00 crore issue funded redemption of debentures and acquisition of debentures issued by subsidiary.

Regulatory Compliance

Biocon confirmed adherence to all regulatory requirements under SEBI Master Circular no. SEBI/HO/DDHS/DDHS-PoD/P/CIR/2025/0000000137 dated October 15, 2025. The company certified that asset classification of fund-based facilities from banks and financial institutions continued to be "Standard" and no material changes occurred in financial status affecting credit rating.

Corporate Governance

The buyback was executed in accordance with guidelines issued by Fixed Income Money Market and Derivatives Association of India (FIMMDA). Biocon obtained consent from commercial paper holders and made full buyback of both issues. Company Secretary and Compliance Officer Rajesh U. Shanoy signed the regulatory communication, ensuring proper corporate governance standards.