India Inc. Projects Steady Growth Amid Challenges
India Inc. is projected to experience modest revenue growth of 5-6% in Q2 FY2026, sustained by rural demand and premiumisation, despite facing challenges such as GST rationalisation and discretionary purchase deferrals. Structural shifts and government expenditure are expected to bolster growth.
- Country:
- India
India Inc. is on track for a moderate revenue uptick of 5-6% year-on-year in Q2 FY2026, according to a report by ICRA, which attributes this growth to robust rural demand and ongoing premiumisation trends.
The report suggests that India's credit metrics will likely remain stable, projecting an interest coverage ratio between 4.9 and 5.1 times. Nevertheless, potential changes in GST and deferred purchases could slow down demand in some sectors.
Despite a 4.1% sequential revenue decline in Q1 FY2026, driven by seasonal sectoral weaknesses, the structural growth of organised players and expansion in niche markets like electric vehicles is set to drive momentum, with government expenditure further supporting investment activities.
Advertisement
Google News