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India Inc's Credit Quality Soars in H1FY27 Amidst Global Headwinds, CareEdge Reports
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Moneycontrol•30-09-2026, 14:05
India Inc's Credit Quality Soars in H1FY27 Amidst Global Headwinds, CareEdge Reports
- •India Inc's credit quality significantly strengthened in H1FY27 despite global uncertainties like geopolitical tensions, volatile energy prices, and inflationary pressures, according to CareEdge Ratings.
- •CareEdge's credit ratio nearly doubled to 3.95 times in H1FY27 from 1.93 times in H2FY26, with 300 upgrades against 76 downgrades, marking an all-time low downgrade rate of 4%.
- •Corporate balance sheets improved substantially between 2016 and 2026, with gearing almost halving, PBILDT margins expanding, and interest coverage rising.
- •The manufacturing, services, infrastructure, and BFSI sectors all showed improved credit ratios, with infrastructure seeing the sharpest rise to 8.31 times.
- •CareEdge warns that H2FY27 could test this resilience due to evolving geopolitical tensions, energy prices, inflation, global interest rates, and trade policy.
Key Questions Answered
India Inc's credit ratio nearly doubled to 3.95 times in H1FY27, rising from 1.93 times in H2FY26. CareEdge Ratings recorded 300 upgrades compared to 76 downgrades during this period.
Infrastructure recorded the sharpest improvement, with its credit ratio rising from 1.67 times to 8.31 times. This growth was largely supported by project commissioning, particularly across Hybrid Annuity Model road projects and renewable power.
Corporate balance sheets strengthened significantly between 2016 and 2026, with overall gearing nearly halving from 1.04 times to 0.50 times. Additionally, PBILDT margins expanded to 14% from 10%, and interest coverage rose to 7.59 times from 4.10 times.
