Corporate credit profiles remained resilient in 2025-26, with rating upgrades significantly outpacing downgrades, reflecting healthy balance sheets, steady domestic demand, and continued policy support, ICRA said on Wednesday.
During FY26, ICRA upgraded 388 entities compared to 124 downgrades, resulting in a strong credit ratio of 3.1 times, a notable improvement from 2 times in FY25 and 2.1 times in FY24.
The overall credit quality remained benign, supported by stable operating performance across sectors and sustained infrastructure-led growth, it said, adding power, real estate, hotels, auto components and road sectors accounted for a significant share of rating upgrades.
However, pockets of stress persisted in segments such as microfinance and select chemical players, contributing to some downgrades, ICRA said.
ICRA Executive Vice President & Chief Rating Officer K Ravichandran said the alleviation of US tariff-related risks and the signing of the India-EU trade agreement had ..​Corporate credit profiles remained resilient in 2025-26, with rating upgrades significantly outpacing downgrades, reflecting healthy balance sheets, steady domestic demand, and continued policy support, ICRA said on Wednesday.
During FY26, ICRA upgraded 388 entities compared to 124 downgrades, resulting in a strong credit ratio of 3.1 times, a notable improvement from 2 times in FY25 and 2.1 times in FY24.
The overall credit quality remained benign, supported by stable operating performance across sectors and sustained infrastructure-led growth, it said, adding power, real estate, hotels, auto components and road sectors accounted for a significant share of rating upgrades.
However, pockets of stress persisted in segments such as microfinance and select chemical players, contributing to some downgrades, ICRA said.
ICRA Executive Vice President & Chief Rating Officer K Ravichandran said the alleviation of US tariff-related risks and the signing of the India-EU trade agreement had .. ​Latest News [ SOBAN NEWS: International and National ]
