Indian Corporate Credit Quality Strengthens in H1FY27 Driven by Healthier Balance Sheets
Business Standard · business
Indian corporate credit quality remained robust in the first half of FY27, with credit ratios improving across various sectors. Companies benefited from stronger balance sheets, reduced leverage, and healthy liquidity, providing significant financial buffers. Upgrades were particularly notable in infrastructure and allied sectors, driven by government spending, while downgrades were concentrated in ceramics and polyester textiles due to supply chain issues and export demand. Despite these positive trends, risks such as elevated crude prices, inflation, and global economic uncertainties persist, though credit conditions are expected to remain stable.