India Inc's credit quality remains resilient in H1FY27
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- ✓India Inc's credit quality remained resilient in the first half of FY27 despite global tensions and supply chain issues.
- ✓Crisil Ratings said, "These strengths, operational adaptability and robust balance sheets, have been reinforced by strong domestic demand." Upgrades outpaced downgrades as companies used healthy balance sheets to manage rising costs.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Business Line
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
India Inc's credit quality remained resilient in the first half of FY27 despite prolonged geopolitical tensions, supply chain disruptions, volatile energy prices and inflationary pressures, as reflected in the credit metrics released by major rating agencies.
However, Crisil Ratings, ICRA, CareEdge Ratings and India Ratings & Research (Ind-Ra) cautioned that escalating tensions in West Asia, higher crude oil prices, deficient monsoon rainfall and global trade uncertainties could pressure corporate credit profiles in the second half of the fiscal year.
Crisil Ratings' credit ratio, measuring upgrades relative to downgrades, improved to 2.18 times in H1FY27 from 1.50 times in H2FY26. The agency recorded 464 upgrades against 213 downgrades, with infrastructure-linked sectors accounting for nearly 40 per cent of upgrades. Downgrades were concentrated in ceramics and polyester textiles.
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