Crisil

The profitability impact of the recent West Asia conflict on corporate India is likely to be about half as severe as initially feared if the US-Iran ceasefire holds and energy supplies continue to normalise, Crisil Ratings said. The ratings agency said it now expects the conflict to shave around 100 basis points off India Inc's operating margins in fiscal 2027, compared with its earlier estimate of a 200-basis-point hit under a prolonged conflict scenario that included disruption to shipping through the Strait of Hormuz. The revised outlook follows a sharp correction in crude oil prices after the reopening of the Strait of Hormuz under a fragile US-Iran memorandum of understanding, although Crisil cautioned that geopolitical risks remain elevated and gas supplies could take longer to normalise. "If the armistice sustains, two-thirds of the 34 sectors (we assessed) will see minimal disruption, with margin recovery in the second half mostly offsetting pressures of the first half," sai

Prolonged heatwave conditions and higher manufacturing activity pushed India's power demand up 11.2 per cent year-on-year to 165 billion units in May

Domestic solar cell supply is expected to meet around half of the 60-65 GW demand this fiscal, with imports making up the rest, Crisil Ratings said

Ratings agency says higher oil and gas costs could moderate growth, squeeze margins and push GDP expansion lower in FY27

Crisil Ratings says ECLGS 5.0 could add around 10% debt to rated companies as firms seek funding support to manage higher working capital needs amid the West Asia conflict

Crisil said cumulative increases in petrol and diesel prices could approach Rs 10 per litre, raising transport costs and exerting upward pressure on both food and core inflation

Crisil states 22 of the 34 sectors stress-tested could see operating profitability decline by over 10 per cent as companies may not be able to fully pass on higher costs to consumers immediately

Firms diversify sourcing, redraw playbook, increase prices to tide over crisis

Upgrade factoring in continued support by Aditya Birla group, strategic market position and improved business operations

The rating agency said that only eight sectors, accounting for around 10 per cent of rated corporate debt, were expected to see a material impact on credit quality

Reducing oil import dependence requires India to also curb its demand for oil

Crisil expects India's oil trade deficit and current account deficit to widen sharply in FY27 as Brent crude prices rise amid the West Asia crisis

Crisil Ratings expects India's passenger vehicle industry to post record sales this fiscal, supported by GST-led demand recovery and continued preference for utility vehicles

Crisil has lowered India's FY27 growth forecast, warning that elevated crude oil prices and supply disruptions could hurt inflation, consumption and investments

Crisil said most delayed highway projects under the hybrid annuity model have received extension approvals as delays were beyond concessionaires' control

India's flexible workspace market is projected to expand sharply over the next two fiscals, driven by rising demand from GCCs, corporates and start-ups, with credit profiles expected to remain stable

CRISIL says Brent crude prices may stay elevated amid supply disruptions, geopolitical risks, and constrained flows, revising its FY27 price outlook upward to $90-$95 per barrel

Crisil sees strong infrastructure investment growth through FY28 backed by policy support and balance sheets, though risks persist across renewables, roads and real estate

Domestic lenders likely to see GNPAs at 2-2.2% in FY27, with MSME segment facing some pressure while corporate and retail portfolios remain stable

Crisil has reported a 46% jump in net profit to ₹233 crore for the first quarter of CY26. CRISL has also announced an interim dividend of Rs 9.