Growth With Guardrails: Fitch Sees Steady But Watchful Outlook

Corporate Outlook  
Fitch Ratings, in its January 2026 commentary, noted that aggregate revenue for rated Indian corporates is expected to rise by 6% in FY27, reversing a 1% decline in FY26. Improved consumer spending, aided by GST rate reductions, is expected to drive growth. EBITDA margins are forecast to strengthen to around 16%, up from 15.3% in FY26.  

Key Highlights  

• Revenue growth of 6% projected for FY27, driven by steady GDP expansion and consumer demand  
• EBITDA margins expected to improve to 16% due to lower input costs and better product mix  
• High capex intensity remains a challenge, potentially straining cash flows despite stronger earnings  
• Global uncertainties, including commodity price volatility and geopolitical risks, could weigh on performance  
• Corporates with diversified operations and strong cost-saving initiatives are better positioned to withstand pressures  

Reflection On Risks  
While the overall outlook is stable, Fitch cautions that elevated capex and external shocks could test liquidity and leverage profiles. The report underscores the importance of prudent financial management and strategic diversification for Indian corporates to sustain resilience in the coming fiscal year.  

Sources: Fitch Ratings Commentary, India Corporates Credit Trends January 2026