Mumbai: Despite global and domestic shocks, India Inc continues to remain resilient with credit ratio, which measures the proportion of rating upgrades to downgrades, improving 2.18 times in the first half of FY27 from 1.50 times in the second half of FY26, according to Crisil Ratings.
The rating agency said the improvement in credit ratio signals continued resilience in corporate credit quality despite geopolitical uncertainty and supply chain disruptions. Companies faced challenges from the prolonged West Asia conflict, supply chain disruptions, higher energy and logistics costs and weak monsoon conditions. However they adapted through supplier diversification, logistics reconfiguration, passing part of the higher costs to customers and maintaining strong balance sheets.
Subodh Rai, the managing director of the agency, said stress tests run by the agency have reduced the number of sectors impacted by the geopolitical tensions to three from six at the start of the fiscal.
He said diamond polishers, specialty chemicals and polyester textiles continue to be at risk because of the war, while others including airlines, ceramics and flexible packaging have seen an upgrade to ‘stable’ in their respective credit quality outlook.
The gross non-performing assets ratio for banks can increase marginally to between 1.9-2 per cent by the end of the fiscal year from 1.8 per cent in the year-ago period, it said.
“A rate hike scenario of even up to 50 basis points (bps) appears largely manageable for India Inc,” its chief criteria officer Somasekhar Vemuri said, adding that corporate India is cushioned by its structural strengths including deleveraged balance sheets.
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