Page 3 - Icra

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

Icra pegs India's GDP growth at 6.2% for FY26, down from 6.5% in FY25

Leading rating agency ICRA, in its latest outlook, said India's real GDP growth for 2025-26 will be 6.2 per cent, down from 6.5 per cent in the preceding financial year. Real Gross Value Added (GVA) growth is also expected to ease to 6 per cent from 6.4 per cent. Regarding inflation, the Consumer Price Index (CPI) is expected to be above 3.5 per cent, while the Wholesale Price Index (WPI) will be over 1.8 per cent for the current fiscal, the report added. ICRA has forecast the fiscal deficit to be 4.4 per cent of GDP for 2025-26, with the current account deficit projected at 1.2 per cent to 1.3 per cent during the same period. According to ICRA, rural demand is likely to remain upbeat, aided by Rabi cash flows and above-normal reservoir levels. It also said that the combination of the sizeable income tax relief in the Union budget for 2025-26, rate cuts leading to lower EMIs and moderation in food inflation is expected to boost household disposable incomes. The report added that

Tractor sales in India may grow 4-7% in FTY26 on monsoon boost: ICRA

Tractor sales in India are likely to see a moderate growth of 4-7 per cent in 2025-26 on the back of a favourable monsoon forecast, which is expected to support agricultural production, ratings agency ICRA said on Wednesday. Pre-buying ahead of the TREM V emission norms, proposed to take effect from April 1, 2026, could further aid volume growth, ICRA said in a statement. "The industry wholesale volumes grew at 7 per cent in FY2025, aided by steady demand amid adequate rainfall. In FY2026, the industry is expected to report a growth of 4-7 per cent supported by a favourable monsoon forecast," it said. Citing IMD (India Meteorological Department) forecast of an above-normal precipitation at 105 per cent of the long period average (LPA) during the current monsoon season as per first long-range forecast, ICRA said, favourable monsoon and increased crop production will support industry volumes. "Further, the third advance estimates, released in May 2025, indicate a YoY increase of 7.9

ICRA to acquire risk solution firm Fintellix India for $26 million

ICRA has entered into a definitive agreement to acquire Fintellix India, a provider of risk and reporting solutions to global financial institutions, for USD 26 million. In a stock exchange filing, ICRA said its board has granted approval for the acquisition of 100 per cent shareholding in Fintellix India Pvt Ltd for a consideration of INR equivalent to USD 26 million by way of a secondary purchase, pursuant to execution of a share purchase agreement and other transaction documents. Commenting on the development, Ramnath Krishnan, MD & Group CEO of ICRA, said, "With this acquisition, we reiterate our commitment to being a leading risk technology player. This space is fast evolving with increasing regulatory scrutiny in financial markets, and we believe Fintellix and ICRA together will better address the emerging market needs." The rating agency said the acquisition will additionally strengthen ICRA Group's portfolio of credit risk assessment and monitoring tools by adding risk ...

Icra projects 6-8% growth for hospitality, downgrades outlook to 'stable'

Growth of India's hospitality sector is expected to "normalise" at 6-8 per cent in the current financial year, rating agency Icra said on Monday while downgrading the sectoral outlook to "stable" from positive. The rating agency also stated that foreign tourist arrivals (FTAs) to India are expected to remain muted in the next few months in the aftermath of the terror attack at Pahalgam in Jammu and Kashmir, but are estimated to witness a gradual recovery thereafter. However, domestic tourism has been the prime demand driver so far and is likely to remain the same in the near term. Factors, including improvement in infrastructure and air connectivity, favourable demographics, and anticipated growth in large-scale MICE events, with the opening of multiple new convention centres in the last few years, will support the growth over the medium term, Icra said. According to the rating agency, the domestic hospitality sector's earnings and credit metrics are expected to remain stable in ..

RBI Policy: Full of surprises, dovish on growth, neutral on further cuts

With inflation expected to rise back to above 4 per cent by Q4-FY26, the Monetary Policy Committee has capitalised upon the available headroom to frontload rate action

Power demand to increase by 6-6.5% over next five years, says ICRA

ICRA attributes the growth in demand to greater adoption of electric vehicles and green hydrogen segments, and the expansion of power-hungry data centres

Small investors in derivatives segment declined 49% after Sebi curbs: Icra

ICRA report shows Sebi's F&O regulations have led to a sharp decline in smaller investor participation, with premium turnover under ₹10,000 falling 49 per cent