FY25–26 brings a fresh set of challenges and opportunities for Indian industries. Recent insights from credit rating agencies offer a comprehensive roadmap for how different sectors are expected to perform in this dynamic environment.
Construction & Infrastructure: Growth Moderation
ICRA projects the construction industry’s operating income to grow by 8–10% in FY26, driven by a solid order book position and a low base effect from FY25. However, this marks a moderation from the long-term compound annual growth rate (CAGR) of 15% observed during FY18–FY24. Business Finance News
Banking & Financial Services: Stable with Regulatory Support
CRISIL anticipates bank credit growth to increase by 100–200 basis points year-on-year, reaching 12–13% in FY26. This growth is supported by recent regulatory measures, tax cuts boosting consumption, and softer interest rates. Crisil Ratings
Energy & Renewables: Stable Outlook Amid Investment Needs
India Ratings and Research (Ind-Ra) maintains a stable rating outlook for energy infrastructure projects for FY26. However, Moody’s estimates that India will need to invest up to $385 billion to meet its renewable energy target of 500 gigawatts by 2030. India Ratings+2India Ratings+2India Ratings+2Reuters+1Financial Times+1
IT Services: Moderate Growth Amid Global Headwinds
ICRA projects a moderate 4–6% revenue expansion in USD terms for Indian IT services companies in FY26, following a 4–5% increase estimated for FY25. Analysts caution that earnings may stutter due to weak discretionary spending in key markets like the US. ICRAReuters
Agrochemicals: Revenue Growth with Margin Pressures
CRISIL expects the agrochemicals sector’s revenue to grow at 7–9% in FY26, following stable domestic demand and recovery in export volumes. However, ICRA notes that margins may remain subdued amid rising competition and US tariffs on Chinese products. The Economic TimesB2B Marketplace+1ICRA+1
Auto Components: Moderate Revenue Expansion
The Indian auto component industry’s revenues are projected to expand by 8–10% in FY26, supported by stable demand from original equipment manufacturers (OEMs) and exports. business.ians.in
Microfinance Institutions (MFIs): Asset Quality Concerns
CareEdge Ratings anticipates a negligible portfolio growth for the microfinance industry, projecting a rate of 4% for FY25. Rising credit costs and compression in yields are expected to exert further pressure on the sector. B2B Marketplace+3Care Ratings+3Business Finance News+3
Macroeconomic Outlook: Resilient Growth Amid Global Challenges
CRISIL projects India’s real GDP growth to be steady at 6.5% in FY26, despite uncertainties stemming from geopolitical tensions and trade-related issues, including US tariff actions. The government’s 2025–26 budget introduced measures to cut personal income tax rates to enhance middle-class spending and increase private investment, aiming to sustain capital expenditure while countering slower growth and high inflation. CRISIL Reuters
In summary, while sectors like construction and energy show promising growth, others like banking and MFIs warrant cautious optimism. Staying informed and adaptable will be crucial for stakeholders navigating FY25–26.
About FinMen Advisors
As Indian industries steer through FY25–26’s evolving landscape, FinMen Advisors stands at the forefront, equipping businesses with strategic clarity and financial foresight. With deep-rooted expertise in credit rating advisory, IPO preparedness, and sector-specific financial consulting, we help clients align with rating agency expectations, enhance creditworthiness, and make informed decisions amid shifting market dynamics. Whether it’s navigating rating complexities in capital-intensive sectors or unlocking growth in emerging industries, FinMen Advisors ensures you’re not just ready for what’s next—but ahead of it.
