Falling rupee is stinging Indian companies with unhedged foreign debt

Indian companies went on a borrowing spree abroad in the past few years, when the local currency was stronger

The rupee’s free-fall is hurting the minority of Indian firms that haven’t hedged their overseas borrowings.

India Inc. overall is better off than several years ago, after more companies with foreign-currency debt bought protection against rupee declines, which otherwise would push up the cost to service those obligations. But there’s still a group of debtors that lack such safeguards, just as the rupee’s tumble worsens and a wall of debt comes due.

As the rupee slides to fresh lows and U.S. rates move sharply higher, unhedged Indian firms that swapped overseas debt into the local currency and that don’t have