Steady GDP, rate cuts to support credit access in FY26

FITCH EXPECTS AGGREGATE SALES GROWTH FOR FITCH-RATED CORPORATES TO REMAIN LIMITED TO 1-2% IN FY26

- Press Trust of India

NEW DELHI: Fitch Ratings on Monday said India's steady GDP growth outlook, improved banking sector's financial health and expected interest-rate cuts in 2025 will support credit access for corporates in FY26.

The credit metrics of rated Indian corporates is expected to improve in the next financial year (April 2025-March 2026) driven by wider EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margins, despite high capex intensity.

However, downside risks could materialise if energy prices rise significantly given ongoing geopolitical risks, a sustained downward pressure on the Indian rupee or adverse trade protectionist measures dampening exports.