Page 3 - Crisil Report

Average home prices to rise 4-6% after double-digit growth in last 2 years

Housing prices are likely to rise by an average 4-6 per cent in the medium term after recording a double-digit growth in the last two financial years, according to Crisil Ratings. "Residential real estate developers will see stable sales growth this fiscal and the next as demand steadies after three years of post-pandemic recovery. Demand or volume is seen rising 5-7 per cent and average prices 4-6 per cent," Crisil said in a statement. With supply expected to continue exceeding demand, inventory levels should inch up this and next fiscal, it added. However, the rating agency said that strong collections and deleveraged balance sheets of developers will keep their credit profiles healthy. Crisil has analysed 75 real estate companies, accounting for around 35 per cent of the residential sales in the country. During the three financial years, the rating agency said that sales in value terms clocked a compound annual growth rate (CAGR) of around 26 per cent, and demand (volumes) cloc

Crisil SME Tracker: Rural road execution likely speed-breaker for SMEs

Small and medium enterprises (SMEs) are expected to play a crucial role in this growth given they account for 50-55 per cent of the industry by revenue

BTA likely to reduce India's goods trade surplus with US, says Crisil

The imminent bilateral trade agreements (BTA) with the US is likely to reduce India's goods trade surplus with that country, according to a research report by CRISIL. During the financial year 2024-25, India's trade surplus with the US stood at USD 41.18 billion, according to data of the Indian government. The report said after completion of trade pact, India will be able to import more energy, certain agriculture products and defence equipment among others. Although the US is India's largest export partner, there is scope to increase exports further in areas like smartphones, pharmaceutical products and labour-intensive exports such as textiles, gems and jewellery, the report said. The US announced reciprocal tariffs on India and a host of other nations in April 2025, and then paused the increase for 90 days from April 10 to negotiate trade deals with these countries. As India negotiates a trade deal with the US in the form of BTA, the first tranche is expected to be completed by

India's parboiled, raw rice exports dip for 4th month in a row in May

The dip in export has come despite India lifting almost all the restrictions on overseas shipments from September 2024

Emerging diversified construction firms set for stable FY26 growth: Crisil

Emerging diversified construction firms are expected to witness stable growth in 2025-26, with revenues projected to rise by 9-11 per cent, Crisil Ratings said on Tuesday. Healthy order books, driven by the timely execution of projects, supporting their credentials, have resulted in the continued scale-up of operations, it said. "Emerging diversified construction companies will continue to see steady growth this fiscal, with revenues growing 9-11 per cent compared with a 15 per cent compounded annual growth rate in the five fiscals through 2025," it said in a statement. However, limited ability to pass on the impact of sharp commodity price fluctuations and stronger competition will limit the operating margins to 10-11 per cent. While the working capital requirements of emerging construction companies will be higher on-year, it will be funded mainly by better cash flows and risk management practices, thus limiting fund-based working capital bank borrowings. Timely execution of a ..

Shrimp export volume growth to stay flat in FY26 due to US tariffs: Crisil

Indian exporters are expected to face stronger competition in low-value-added segments like raw, frozen, and peeled frozen shrimp, according to the Crisil report

Fund Pick: UTI Aggressive Hybrid Fund outperforms in peer category

The category's average allocation to large, mid, and smallcaps was 48.09 per cent, 12.63 per cent and 9.34 per cent, respectively

Auto parts sector to grow 7-9% in FY26, driven by 2W, PV demand: Crisil

A moderate recovery in commercial vehicles and tractor sales, which contribute around 17 per cent to overall revenue, is also expected to support growth

Cost of home-cooked thalis declines in April as food prices cool

Vegetarian and non-vegetarian thalis became cheaper in April due to lower prices of onion, potato and broiler, although oil and LPG costs curtailed a deeper drop

PV industry to hit record 5 mn domestic, export units in FY26: Crisil

Passenger vehicle industry in India is expected to touch a record cumulative domestic and export volume of 50 lakh units this fiscal despite the annual growth rate slowing down to 2-4 per cent, according to Crisil Ratings. However, penetration of electric vehicles (EVs) is seen at a moderate 3-3.5 per cent despite new launches and declining battery costs due to high prices, modest charging infrastructure and range anxiety, restricting the market to urban users as a second car option, the insights-driven analytics firm said in a statement. The growth in the EV segment has slowed after doubling last year on a low base, it added. "India's passenger vehicle (PV) industry is set to scale a fresh high this fiscal with domestic and export volume cumulatively crossing 5 million units even as the annual growth rate slows to 2-4 per cent," Crisil Ratings said. This marks the fourth consecutive year of record sales, although momentum has significantly eased from the 25 per cent surge in fisca

India Inc revenue growth flat in Q4, but margins to widen: Crisil

India Inc's revenue growth will remain flat at about 5-6 per cent in the March quarter, but profitability will widen, a domestic rating agency said on Thursday. Crisil Ratings said the operating profit margins are seen at 8 per cent, a widening of up to 0.60 per cent, when compared with the year-ago performance. The agency analysed over 400 companies accounting for over 50 per cent of NSE's market capitalisation to arrive at its estimates. Some companies, especially in the information technology sector have already announced their earnings. Improved showing by the consumer-driven sectors excluding staples will be a key contributor for the topline growth, while the bottom line will benefit from a mixed set of aspects which are unique to a sector, it said. Crisil Intelligence's director Pushan Sharma said consumer discretionary products, services and staple services segment is expected to see 8-9 per cent on-year increase in revenue. "This would be led by an expected 15 per cent sur

Tractor sales likely to hit record high in FY26 on monsoon, MSP hike

Pre-buying ahead of TREM V norms, rising construction activity to fuel demand; margins remain stable

Tractor sales in FY26 to hit record 975K units, ₹4K cr capex likely: Crisil

Higher minimum support prices for key cash crops, better replacement and construction demand amid hopes of above-normal monsoon are likely to drive domestic tractor sales to hit an all-time high of around 9.75 lakh units in 2025-26, growing at 3-5 per cent, according to Crisil Ratings. A strategic capex cycle worth Rs 4,000 crore is around the corner in the Indian tractor industry with capacity utilisation nearing optimal levels of 75-80 per cent and the push for cleaner technologies under TREM V, the analytics firm said in a statement. The emission norm of 'TREM V' is expected from April 1, 2026, pre-buying towards fiscal-end may also provide a fillip to volume, it added. "As a result, tractor sales this fiscal year are expected to surpass the peak of 9.45 lakh units achieved in fiscal 2023, sustaining the back-to-back volume growth seen during fiscal 2019," it noted. There was a healthy 7 per cent increase in sales in FY25, Crisil Ratings said. The Indian Meteorological Departme

Crisil Ratings downgrades United India Insurance rating from AA to AA-

Reaffirms rating for New India, National Insurance

Commercial vehicle sales may touch 1 mn mark in FY26 after 7 yrs: Crisil

LCVs to account for 62% of volumes

Securitisation volumes jump 24% to hit new record of ₹2.35 trn in FY25

Securitisation volumes in FY25 increased 24 per cent to hit the highest level of Rs 2.35 lakh crore, a report said on Monday. The volumes of securitisation, which involves passing on future receivables on a loan to address upfront liquidity needs, were lower in the fourth quarter at Rs 58,000 crore as against Rs 63,000 crore and Rs 70,000 crore recorded in the preceding two quarters, as per the report by rating agency Crisil. The jump in FY25 volumes was driven by large deals originated by private sector banks and also non-bank finance companies, it said. Largest private sector lender HDFC Bank has been very active on issuances in FY25 in order to improve its credit-deposit ratio after merging mortgage major parent HDFC into it. The Crisil report said number of issuers increased to 175 in FY25, from 165 entities in the year-ago period. The share of securitisation by banks increased sharply to 26 per cent in FY25 from 5 per cent in FY24 as a few banks used securitisation to manage

FMCG sector can hope for revenue revival as urban demand returns: Crisil

The report says the FMCG sector should see revenue rebound by 100 to 200 basis points (bps) to 6-8 per cent in FY26 up from an expected 5-6 per cent in FY25 as volume rises 4-6 per cent

Cement demand to improve, US tariff impact seen for metal: Crisil

On the commodity sector, Crisil said, "especially metals, will continue to drag down growth due to prevailing pricing pressure"

Private capex unlikely to pick up despite high profitability: Crisil

Private sector capital expenditure is unlikely to pick up in a sustained way despite India Inc's profitability being near decadal high, domestic ratings agency Crisil said on Thursday. The profitability of India Inc is set to increase for the third year in a row in FY26 on the back of soft commodity prices, the agency said. An analysis of 800 companies excluding ones in the banking and finance and oil and gas sectors revealed that the pre-tax profit margins are set to widen to up to 20 per cent in FY26. It can be noted that the government is leading the investments in the economy for the last few years, and there have been calls for a revival in the corporate capex as well. However, rather than investing to create new capacities, India Inc has deployed money to retire debt and other measures rather than investing it even though the capacity utilisation levels are high. "Their (corporates') ability to invest is not matched by the willingness to invest at this juncture," the agency'

Homemade meals get dearer in Jan, non-veg thali pinches more: Crisil report

The cost of a homemade meal rose in January year-on-year due to a hike in the prices of potatoes, pulses and chicken, a report said on Thursday. A jump in the chicken prices led to a more pronounced jump in the non-vegetarian thali, the monthly roti, rice rate report by a unit of ratings agency Crisil said. The cost of a vegetarian meal increased to Rs 28.7 per plate from Rs 28 per plate in the year-ago period, on a 35 per cent growth in potato, 7 per cent in pulses and 17 per cent in vegetable oils, it said, adding that an 11 per cent drop in fuel costs helped temper the impact. When compared with the preceding month, the cost of a veg thali cooled from Rs 31.6 per plate on a 34 per cent fall in tomato prices, 16 per cent decline in potato and 21 per cent in onion prices, it said. In the case of non-veg thali, the cost of preparing a plate went up to Rs 60.6 each from Rs 52 a year ago on a 33 per cent jump in broiler, which accounts for 50 per cent weight in the overall price, it