Fitch Ratings has projected that aggregate revenue of rated Indian corporates is expected to grow by 9% in the financial year ending March 2027 (FY27), compared with an estimated 5% growth in FY26. The outlook was highlighted in Fitch’s report, India Corporates Credit Trends: July 2026.
According to the report, corporate credit profiles are likely to remain stable in FY27 as stronger revenue growth is expected to offset challenges arising from higher input costs and pressure on profitability in certain sectors.
The anticipated revenue expansion is expected to be supported by improved pricing in the natural resources segment and sustained demand across major industries. However, Fitch noted that profitability margins may face pressure due to rising operational costs, particularly in sectors such as oil refining and marketing, chemicals, and cement.
Fitch estimates that the aggregate EBITDA margin of rated Indian corporates could moderate to around 14.2% in FY27 from an estimated 15.7% in FY26 due to cost-related challenges. The median EBITDA net leverage ratio is expected to remain broadly stable at 2.7 times in FY27 compared with 2.6 times projected for FY26, although sector-wise variations may continue.
The rating agency highlighted potential external risks that could affect corporate performance, including renewed geopolitical tensions involving the US and Iran, higher energy costs, increased working capital requirements, demand fluctuations, and weather-related uncertainties such as El Niño conditions and weak monsoon activity.
Fitch further stated that Indian corporates are expected to maintain financial flexibility by using multiple funding sources, including bank financing, private credit facilities, domestic and international debt market issuances, and existing cash reserves to support capital expenditure and business operations. CA Sansaar