According to a recent Carriage Ratings report, India Inc. The credit profile of the fiscal is strengthened in the first half of the year 26, the upgrade-to-downward ratio rises 2.56 times the rear, reflecting widespread elasticity in the fields.

The upgrades in H2FY 25 to 14% to H1FY26 are up 15% while the downgrade is stable 6%. In the last three years, a total of 282 upgrades and 110 downgrades were recorded, with confirmations being about 80% stable.

Corporate leverage is now at the decidal low level, with PBILDT (interest, lease rental, depreciation and tax profits) 1.63 times by March 31, 2025 in March 3, 2025.

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However, the benefits were uneven. The report added, “Small-sized Auto toe genetics and dealers, chemical manufacturers, small finance banks (SFBS) and NBFCs are the highest downs and asset-quality concerns, considering the challenges of micro finance and insecure business loans.”

The infrastructure sector was a standout, jumping 8.54 times in its credit ratio H1 FY26, which is powered by timely project execution, healthy payment cycle and portfolio reorganization. Manufacturing and services also hold well, with a 1.72 -fold credit ratio, though H2FY 25 is slightly less than 2.06 times. Hospitality, capital goods, agricultural-production products, iron and steel and real estate were one of the top artists.

The BFSI sector began a strong re -recovery, its credit ratio is 2.10 times the previous half, leading to strong capital buffers and safe portfolio by banks and housing finance companies. Micro finance and unsecured credit segments, however, continued to face elevated credit costs.

Carage warned that continuous external uncertainties could angry the quality of credit in the near term. While strong balance sheets and domestic demand continues to support, next months India will test the ability of global instability and migrant dynamics to weather.

Global trade tensions, especially in US tariffs, have added a level of complexity. Carriage ratings warned that, when the U.S. The trader’s export is only 2% of India’s GDP – currently there are smartphones and common drugs outside the tariff net – continuous tariffs can reduce the flow of competitiveness and slow investment over time, warning carriage ratings.

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