Page 3 - Icra

India's road construction likely to slide to 5-year low in FY26: Icra

Road construction in the country is estimated to drop to a five-year low of 25-26 km per day in FY2025-26, domestic rating agency Icra said on Tuesday. Icra attributed the decline to lower execution due to extended monsoon periods and a decline in project awarding over the past two years. The rating agency said India will achieve an execution of over 9,000 km of roads in FY26 or 25-26 km per day, which represents a "significant slowdown". This represents a downward revision from an earlier forecast of 9,500-10,000 km of execution in FY26, Icra said in a statement. The slowdown in FY26 will be on top of a 14 per cent decline in the previous fiscal, the rating agency said, pointing out that 10,660 km of road building was achieved in FY25 and 12,349 km in FY24. Project awarding by the Ministry of Road Transport and Highways in FY25 is estimated to be flat year-on-year at 8,000-8,500 km, which is significantly lower than the awards seen between FY21 and FY23, it said. In FY26, the pr

India adds record 20.1 GW renewable capacity in Apr-Aug, 123% jump YoY

India added 20.1 GW renewable capacity in April-August FY26, a 123 per cent rise from last year, with ICRA projecting over 35 GW additions this fiscal supported by strong demand

Airport passenger traffic likely to hit post-Covid low in FY26: Icra

The ratings agency revised its full-year projection to 5-7 per cent year-on-year from its earlier estimate of 7-9 per cent

Icra cuts FY26 domestic air growth to 4-6%, August traffic stagnates

Icra lowered FY26 domestic air growth forecast to 4-6 per cent from 7-10 per cent, citing global tensions, accident-related hesitancy, and weak demand, as August passenger traffic stagnated

Domestic two-wheeler sales growth estimated at 6-9% in FY26: Icra

Two-wheeler sales in India are estimated to grow by 6-9 per cent in FY26 as compared to the previous fiscal, riding on the recent GST rate reduction, which is anticipated to support affordability and stimulate demand, besides steady replacement demand, urban recovery and healthy rural incomes driven by a normal monsoon, ratings agency ICRA said on Tuesday. Domestic wholesale volumes grew by 7.2 per cent on a YoY basis in August 2025 to 18 lakh units, as OEMs maintained healthy dispatches ahead of the festive season, ICRA said in a statement. Retail sales, however, grew by a marginal 2.2 per cent YoY, with growth constrained by excess rains and some purchase deferment linked to the GST rate cut; a pick-up is expected during the upcoming festive season, it added. ICRA further said it estimates two-wheeler domestic volumes to grow by 6-9 per cent YoY in FY2026. "This projection is supported by steady replacement demand, an expected urban demand recovery, healthy rural incomes driven

Domestic pharma firms expected to post 7-9% revenue growth in FY26: Icra

Revenue of leading domestic pharmaceutical companies is set to expand by 7-9 per cent in the current fiscal even as global headwinds and regulatory uncertainties cast a shadow over its largest export market, the US, as per rating firm Icra. Revenue for the sample set of companies is projected to expand by 7-9 per cent in FY2026, supported by 8-10 per cent growth in the domestic market and 10-12 per cent growth in Europe, it stated. However, performance in the US market is expected to moderate, with year-on-year growth slowing to 3-5 per cent, from nearly 10 per cent in FY2025, Icra said. The operating profit margins (OPM) of ICRA's sample entities are expected to remain resilient at 24-25 per cent in FY2026, broadly in line with 24.6 per cent in FY2025, aided by favourable raw material prices, improved operating leverage, and a rising share of speciality products, it added. Research and Development (R&D) spending is projected to remain steady at 6-7 per cent of revenues, with ...

Indian pharma faces US revenue slowdown amid scrutiny, tariffs: ICRA

ICRA projects Indian pharma firms' US revenue growth to slow due to price erosion, USFDA scrutiny and tariff risks, while high dependence on Chinese APIs persists despite PLI

US tariffs to hit 8% of India's auto component output: Icra report

High US tariffs are expected to affect close to 8 per cent of India's overall auto component production, ratings firm Icra said on Wednesday. Indian auto component exporters are at a relative disadvantage compared to most other Asian exporting nations, highlighting the importance of concluding an India-US bilateral trade agreement, it added. Auto component exports contribute nearly 30 per cent to the industry's revenues, with the US alone accounting for 27 per cent of this share. "As a result, close to 8 per cent of India's overall auto component production is expected to be directly affected by the recently announced tariffs," Icra stated. The imposition of a 50 per cent tariff on Indian goods places Indian auto component exporters at a disadvantage compared to their Asian counterparts, as countries such as China, Japan, Vietnam, and Indonesia face lower tariffs of 1530 per cent, it pointed out. Further, manufacturers in Mexico and Canada remain exempt under the United ...

Housing sales in top 7 Indian cities likely to dip by 0-3% in FY26: Icra

Icra projects housing sales in top seven cities to fall up to 3 per cent in FY26, even as new launches recover and listed developers consolidate market share

ICRA downgrades SATYA Microcapital to 'BBB', outlook revised to 'Negative'

ICRA has downgraded SATYA Microcapital's ratings to BBB with a negative outlook, citing rising NPAs, weak collections, high credit costs and limited capital buffers

Tractor industry volumes likely to post 4-7% growth in FY26: Icra

Tractor industry volumes are expected to grow in the range of 4-7 per cent in the current fiscal, backed by a favourable monsoon, rating agency Icra said on Monday. Following a growth of 7 per cent in FY2025, tractor industry volumes are expected to report a growth of 4-7 per cent in FY26, supported by a favourable monsoon, it said in a statement. Pre-buying ahead of the TREM V emission norms, proposed to take effect from April 1, 2026, could further aid volume growth, it added. The tractor demand remained strong in July 2025, with wholesale and retail volumes rising by 8 per cent and 11 per cent year-on-year (YoY), respectively. According to ICRA, a favourable monsoon is expected to further support agricultural activities and industry volumes. The India Meteorological Department (IMD) has forecast above-normal precipitation at 106 per cent of the long-period average (LPA) during the current monsoons, as per its second long-range forecast. Additionally, the third Advance Estimate

Revenue deficit, capital spends: Key takeaways from 15th finance commission

The 15th FC had recommended a sizeable Rs. 2.9 trillion as revenue deficit grants (RDG) to a select number of states for FY2022-FY2026

Passenger vehicle sales likely to see modest growth of 1-4% in FY26: ICRA

ICRA expects India's passenger vehicle wholesale volumes to grow by 1-4% in FY26, limited by high inventory and a high base. However, possible GST rate cut is likely to provide some support to volumes

Commercial vehicle volumes likely to grow 3-5% in FY26: Icra report

Commercial vehicle dispatches from companies to dealers are expected to witness a volume growth of 3-5 per cent year-on-year in the current fiscal, rating agency Icra said on Wednesday. Domestic commercial vehicle wholesale volumes reported a moderate 6.1 per cent year-on-year increase in July 2025, even as volumes declined sequentially by 2.7 per cent. "ICRA expects the domestic CV industry to post a modest year-on-year growth of 3-5 per cent in wholesale volumes in FY2026, following a marginal 1.2 per cent decline recorded in FY2025," the rating agency said in a report. Within this, medium and heavy commercial vehicle (M&HCV) trucks and light commercial vehicle (LCV) trucks are expected to see modest growth in the range of 0-3 per cent and 3-5 per cent, respectively, during the year, it added. The buses segment, on the other hand, is likely to witness a comparatively higher growth of 8-10 per cent in FY2026, Icra stated. While an uptick in construction and mining activities and

Govt may pay ₹4,500 crore annually to toll operators for FASTag pass

ICRA said the annual FASTag pass will cost the government Rs 4,200-4,500 crore in compensation to toll operators, though relief for commuters will be limited to private vehicles

Auto and component exports slump on weak global demand, says ICRA

ICRA said India's auto and component exports are under pressure from weak global demand and US tariffs, while margins remain squeezed by lower realisations and higher input costs

ICRA sees India Inc credit profile steady in Q2FY26, US tariffs weigh

India Inc's credit profile is set to remain stable in Q2FY26 with improved margins and ICR, but US tariffs and global tensions could delay the private capex recovery

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.