Page 3 - Icra

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

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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

Icra projects India's Q4 growth at 6.9%, FY25 GDP expansion at 6.3%

ICRA on Monday projected India's GDP growth at 6.9 per cent in the quarter ended March 31, and at 6.3 per cent for the full 2024-25 fiscal, undershooting the the National Statistics Office (NSO) estimates made in February. In February, the NSO had projected the Indian economy to grow at 6.5 per cent in 2024-25. With economic growth in June, September and December quarter at 6.5 per cent, 5.6 per cent and 6.2 per cent respectively. To achieve the NSO's projected 6.5 per cent growth in FY25, the GDP growth in Q4 or March quarter should be 7.6 per cent. The NSO is scheduled to release the provisional estimates of FY'25 GDP and quarterly estimates for Q4 on May 30. ICRA in its note said it projected the year-on-year (YoY) expansion of the GDP to rise to 6.9 per cent in Q4 FY 2025, from 6.2 per cent in Q3 FY2025, significantly undershooting the NSO implicit estimate of 7.6 per cent for the quarter. Unless there are material revisions in the data for Q1-Q3 FY2025, ICRA projects a sharp

Icra projects India's Q4 growth at 6.9%, FY25 GDP expansion at 6.3%

ICRA on Monday projected India's GDP growth at 6.9 per cent in the quarter ended March 31, and at 6.3 per cent for the full 2024-25 fiscal, undershooting the the National Statistics Office (NSO) estimates made in February. In February, the NSO had projected the Indian economy to grow at 6.5 per cent in 2024-25. With economic growth in June, September and December quarter at 6.5 per cent, 5.6 per cent and 6.2 per cent respectively. To achieve the NSO's projected 6.5 per cent growth in FY25, the GDP growth in Q4 or March quarter should be 7.6 per cent. The NSO is scheduled to release the provisional estimates of FY'25 GDP and quarterly estimates for Q4 on May 31. ICRA in its note said it projected the year-on-year (YoY) expansion of the GDP to rise to 6.9 per cent in Q4 FY 2025, from 6.2 per cent in Q3 FY2025, significantly undershooting the NSO implicit estimate of 7.6 per cent for the quarter. Unless there are material revisions in the data for Q1-Q3 FY2025, ICRA projects a sharp

ICRA expects five co-working segment IPOs raising over ₹7,000 cr by 2026

Rating agency ICRA on Wednesday said that India's co-working segment may witness five maiden public issues in the next 12-18 months to raise more than Rs 7,000 crore. In a statement, ICRA said that India's flexible (flex)/co-working office space portfolio is expected to increase to around 125 million square feet by March 2027 (from around 80 million square feet as of December 2024) for the top six cities (Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai Metropolitan Region (MMR) and Pune). "This segment, which has seen one successful initial public offer (IPO) in 2024, is set to witness five major IPOs in the next 12-18 months, which are projected to raise over Rs 7,000 crore," it added. Co-working operator Awfis has already launched its IPO and is listed on the stock exchanges. Smartworks, WeWork India and IndiQube Spaces Ltd have already filed the preliminary documents with markets regulator SEBI to launch their IPOs. Anupama Reddy, Vice President and Co-Group Head, Corporate ...

Big builders likely to tighten grip as realty mkt consolidates around them

Homebuyers prefer grade-A builders, delivery of homes key accountability factor

US tariff jitters: Auto part exporters may take a Rs 4,500 crore hit

Exporters with manufacturing operations within the US would also be partly insulated from the new tariffs

Auto part makers may lose Rs 4.5K crore due to trade tariffs: Icra

Leading auto component manufacturers could take a revenue hit of up to Rs 4,500 crore in the current fiscal due to dip in overseas shipments stemming from the tariff-related impact, ratings firm Icra said on Monday. Icra expects the revenue growth of Indian auto component industry, represented by sample of 46 auto ancillaries with aggregate annual revenues of over Rs 3 lakh crore in FY2024, to ease to 6-8 per cent in FY2026, against 8-10 per cent projected earlier, if there is mid-to-high single-digit revenue decline in exports to the US, stemming from the tariff-related impact, it said in a statement. The steep increase in import tariffs imposed recently by the US is estimated to burden the entire supply chain with an incremental cost of around Rs 9,000 crore, which will need to be borne by the US consumers, US importers, and Indian exporters, it said. The extent to which the Indian auto component exporters share the cost burden will be contingent on their competitiveness and the .