Page 3 - Icra

Domestic two-wheeler segment to see 6-9% volume growth in FY26: Icra

The domestic two-wheeler segment is expected to register a 6-9 per cent year-on-year volume growth in the current fiscal, rating firm Icra said on Monday. The growth is likely to be supported by steady replacement demand, recovery in urban consumption, healthy rural incomes aided by a normal monsoon, and a possible reduction in GST rates, which could provide an additional boost, it noted. The industry outlook for FY2026 remains positive, aided by favourable demand drivers and an anticipated GST cut could provide additional stimulus to accelerate growth, Icra stated. In July 2025, domestic wholesale volumes grew by 9 per cent year-on-year to 15 lakh units, with Original Equipment Manufacturers (OEMs) maintaining healthy dispatches ahead of the festive season, it said. However, retail volumes contracted by 6.5 per cent year-on-year last month, as tepid urban demand and heavy rainfall affected rural footfalls, which weighed on sales, Icra stated. The rating agency expects retail dema

Icra pegs Q1 GDP growth rate at 6.7% on higher govt capex, exports

The Indian economy is expected to grow at 6.7 per cent in April-June period of current fiscal, higher than 6.5 per cent a year ago, on the back of higher government capex and exports, rating agency Icra said on Tuesday. This projection also outpaces the RBI's Monetary Policy Committee's (MPC's) forecast of 6.5 per cent growth in the June quarter. India's economy grew 7.4 per cent in March quarter of FY25. Official data for FY26 Q1 GDP is scheduled to be released on August 29. Icra Chief Economist Aditi Nayar said investment activity held up in Q1 FY2026 was boosted by the front-loading of government capex. Although, this admittedly came on a low base amidst the heightened uncertainty owing to geopolitical tensions and tariff-related developments. "Benefitting from robust government capital as well as revenue spending, upfronted exports to some geographies and nascent signals of improved consumption, the pace of expansion in economic activity in Q1 FY2026 is estimated at 6.7 per cen

Net office leasing in top 6 cities likely to sustain at record levels: ICRA

Rating agency ICRA on Thursday said net leasing of office space in the top six cities rose 14 per cent to 65 million sq ft last fiscal and the demand is likely to sustain during 2025-26. In a statement on Thursday, ICRA said it expects the net absorption or leasing of office space in 2025-26 across the top six cities (Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai Metropolitan Region (MMR) and Pune) to sustain at all-time high levels witnessed in the preceding year. The demand is driven by Global Capability Centres (GCCs), Banking, Financial Services and Insurance (BFSI) institutions, flex-space operators, and domestic Information Technology-Business Process Outsourcing (IT-BPM) firms. Quoting data of PropEquity, ICRA said that the net absorption stood at a record 65 million square feet in 2024-25 (14 per cent YoY growth) across India's top six cities. In the April-June quarter of this fiscal, 17 million sq ft of office spaces have been absorbed.

Evolving growth-inflation dynamics unlikely to permit further rate cuts

Economic hit due to US tariff decisions likely to be accentuated

US tariffs on the horizon: Exporters seek rollout of promotion schemes

₹2,250 crore Export Promotion Mission awaits Cabinet nod

Icra Q1 results: Profit rises 19% to ₹43 crore on ratings growth

Domestic rating agency ICRA on Thursday reported a 19.2 per cent growth in profit at Rs 42.8 crore its June quarter. The firm posted a profit after tax (PAT) of Rs 35.9 crore in the year-ago period. Consolidated revenue from operations increased 8.4 per cent to Rs 124.5 crore for the June quarter compared to Rs 114.8 crore a year earlier. In the current quarter, ICRA has entered into a definitive agreement to acquire 100 per cent shareholding in Fintellix India Pvt Ltd for USD 26 million (Rs 225 crore). The acquisition is subject to the completion of mutually agreed conditions as per the share purchase agreement (SPA). ICRA MD and Group CEO Ramnath Krishnan said, "Our ratings business continued to benefit from a supportive credit environment, marked by strong bond issuances and securitisation activity. "The research & analytics segment remained stable, with growth in risk management and market data offset by the residual impact of ESG project discontinuation in the previous ...

AHFC loans to increase to ₹2.5 trillion by FY28-end: Icra report

Domestic rating agency Icra on Wednesday said affordable housing finance companies' (AHFC) assets under management are set to rise to Rs 2.5 lakh crore, from Rs 1.4 lakh crore, in the next three years. It said non-bank lenders' mortgage portfolio is set to touch Rs 20 lakh crore by March 2028, from Rs 13 lakh crore in March 2025. The retail mortgage loan growth will be driven by robust demand and the restricted availability of alternative credit options due to ongoing issues with unsecured lending, the agency's co-group head for financial sector ratings, A M Karthik, said. He added that the sector has traditionally demonstrated strong performance, marked by low loan losses and healthy business returns. The housing finance companies accounted for two-thirds of the overall mortgage loans, while affordable HFCs constituted 11 per cent of the overall assets under management (AUM). The agency said the AHFCs have a higher share of self-employed borrowers and loans against property in th

Transparency, investor safety boost MF appeal as retirement vehicle: Icra

Research firm ICRA Analytics on Monday said that enhanced transparency and investor protection regulations have helped boost investor confidence in mutual funds (MFs) as a retirement vehicle. The assets under management (AUM) of retirement MFs have increased 226.25 per cent in the last five years to touch Rs 31,973 crore in June 2025, up from Rs 9,800 crore in June 2020. The firm said that increasing awareness about the importance of financial planning among people and the need to build a corpus for retirement is raising the importance of retirement MFs. According to ICRA Analytics, such retirement MFs have exposure to both debt and equity, that focus on wealth appreciation and preservation, assuring income stability. Total number of folios under such schemes increased 18.21 per cent at 30.09 lakh in June 2025, up from 25.46 lakh in June 2020, the report said. Ashwini Kumar, senior VP and head (market data) said that equity MFs have captured significant inflows due to optimism abou

Edge data centre capacity in India likely to triple by 2027, says Icra

India's edge data centre capacity will increase threefold by 2027, growing to 200-210 MW from 60-70 MW in 2024, driven by the proliferation of emerging technologies, according to Icra

Mutual fund industry showcases resilience, growth: ICRA Analytics

The mutual fund industry has showcased resilience and growth potential with strong momentum in systematic investment plans (SIP) and inflows across diverse categories, a report, issued by research firm ICRA Analytics, said on Wednesday. The research report, citing the data of the Association of Mutual Funds of India (AMFI), said total assets under management (AUM) at the end of June touched Rs 74.41 lakh crore, supported by bullish equity markets and sustained retail interest. June marked a strong month for the industry with high inflows and robust investor participation across equity, hybrid and SIP categories, it said. Equity-oriented schemes continued to attract significant investor interest, with total net inflows touching Rs 23,587 crore in June. Debt funds saw moderate outflows in June, compared to May. Net outflow of debt schemes during June stood at Rs 1,711 crore, the report said. Hybrid funds witnessed high inflows at Rs 23,223 crore as investors favoured a balance ...

ICRA downgrades NIIF backed Radiance Renewables' long term rating

ICRA lowers long-term rating to A- and outlook to negative citing delayed capacity additions and increased reliance on mezzanine debt by NIIF-backed RRPL

Construction industry margins to stay between 10.25-10.75% in FY26: Icra

Operating margins in the construction industry are expected to remain steady at 10.25-10.75% in FY26, down from 13-14% in FY21, with revenue growth revised down to 6-8%

Asset quality stress in MFI sector expected to persist in H1FY26: Icra

Asset quality stress in the NBFC-MFI sector surged in 2024-25 amid borrower overleveraging as well as operational challenges, and the pressure is expected to persist in first half of the current fiscal, a report said. ICRA's July 2025 analysis on the Non-Banking Financial Company - Microfinance Institution (NBFC-MFI) said that the AUM of the sector declined 12 per cent in FY2025. However, the rating agency said it anticipates growth to resume in FY2026 to 10-15 per cent. As per the report, asset quality stress surged in FY25 largely due to borrower overleveraging, sociopolitical disruptions, and operational challenges. ICRA has a negative outlook on the sector, given the lingering asset quality stress and subdued profitability. Overall stress in FY2025 surged to 15.3 per cent vis--vis opening stressed pool of 5.9 per cent as of March 2024 on account of significant deterioration in asset quality in the microfinance sector, the report said. Given the deterioration in asset quality,

ICRA forecasts muted growth for mining and construction industry in FY26

ICRA predicts 2-5% growth for mining and construction in FY26 due to factors like erratic monsoons, delayed project awards, and rising equipment costs after regulatory changes

2 midcaps, 1 smallcap stock with up to 35% upside potential; check details

Midcaps Persistent Systems and ICRA alongwith smallcap Valiant Labs look technically strong on charts, following the formation of 'Golden Cross' on Wednesday.

Commercial vehicle sales may grow 3-5% in wholesale volumes in FY26 : Icra

Domestic commercial vehicle (CV) industry is likely to see a 3-5 per cent year-on-year growth in wholesale volumes this fiscal, after logging a slight dip of 1.2 per cent in FY25, Icra said in a report on Monday. This growth is expected to be driven by resumption of construction and infrastructure activities and a steady economic environment, the ratings agency said in its latest report. Domestic CV wholesale volumes saw a miniscule 0.1 per cent increase in the previous month on a year-on-year basis, while sequentially it grew by around 1.6 per cent. However, in the first two months (April-May) of the current financial year, the CV wholesale volumes declined by 0.7 per cent year-on-year, it said. CV retail volumes, according to Icra, declined by 3.7 per cent year-on-year in May 2025, while sequential decline was at 11.3 per cent, it said, adding such trends reflect elevated inventory at dealerships' end. In the medium and heavy commercial vehicle (M&HCV) segment, retail sales ...

Aseem Infra to raise ₹2,500 crore in FY26, reduce bank funding share

NIIF-backed Aseem Infrastructure Finance plans to raise ₹2,500 crore via market and external borrowings in FY26, focusing on green finance and loan book expansion

Exports of cut and polished diamonds to decline by 7-10% in FY26: Icra

India's CPD exports may decline to $12 billion in FY26 amid pressure from US tariffs, lower demand in China, and rising competition from lab-grown diamonds

Icra revises India's PV wholesale growth forecast to 1-4% for FY26

Ratings agency ICRA on Thursday lowered domestic passenger vehicles wholesale volume growth forecast to 1-4 per cent for FY26, citing concerns over high inventory levels and shortage of critical components such as rare earth magnets for especially for electric vehicles. ICRA had earlier pegged the passenger vehicles (PV) wholesale volume growth for FY26 at 4-7 per cent over FY25. The downward revision is "led by concerns regarding high inventory levels and supply shortage of critical components such as rare earth magnets, induced production constraints, especially for electric vehicles," ICRA said in a statement. "However, steady model launches from original equipment manufacturers (OEMs) are expected to partially support the overall industry volumes in the current fiscal year," it added. In May this year, domestic PV retail sales witnessed a 13.6 per cent month-on-month contraction at 3,02,214 units as against 3,49,939 units in April 2025, primarily due to subdued consumer sentime

Icra retains India's FY26 GDP forecast at 6.2% despite rising global risks

Rating agency Icra on Wednesday retained its India's GDP growth forecast for fiscal 2025-26 at 6.2 per cent, assuming well-distributed monsoons and crude oil prices averaging around USD 70/barrel. However, geopolitical tensions in West Asia, volatility in financial markets, and uncertain trade policies pose downside risks to this growth outlook, which have intensified, Icra said in its Macro Update June 2025. Reserve Bank has projected the GDP growth at 6.5 per cent. "Economic activity has displayed a mixed trend in the first two months of FY2026, with only nine of the 17 non-agri indicators showing an improvement over Q4 FY2025, even as the output of summer crops is estimated to grow at a healthy pace," the report said. The early onset of monsoons in May 2025 partly weighed upon the performance of the electricity and mining sectors. It also said the prospects for urban consumption remain bright owing to the income tax relief, rate cuts and softening food inflation. However, glob