India infrastructure power funding demand will remain robust through the second half of fiscal year 2027, driven by sustained project execution, healthy cash flows, and public-sector spending. Specifically, a report released on Thursday by Brickwork Ratings (BWR) highlights that these core segments will anchor credit growth alongside commercial real estate. Furthermore, India Inc’s overall credit profile remained remarkably resilient during H1FY27 despite global financial tightening, elevated crude prices, and below-normal monsoons.
Resilient corporate balance sheets and credit upgrades outpace downgrades
Domestic rating agency data indicates that credit upgrades continued to significantly outnumber downgrades between April and September 2026. Consequently, the ratio of upgrades to downgrades improved to 2.7 times in H1FY27 compared to 2.4 times in the corresponding previous period.
Additionally, total downgrades fell 11 per cent year-on-year, while upgrades remained broadly stable. Meanwhile, corporate debt-to-equity levels strengthened considerably, dropping from 1.1 times in FY20 down to approximately 0.7 times in FY25.
| Corporate Credit & Funding Metric | H2FY27 Outlook & Rating Performance Data |
| Key Funding Sectors | Infrastructure, power, and commercial real estate |
| Upgrade-to-Downgrade Ratio | Improved to 2.7x in H1FY27 (up from 2.4x previously) |
| Corporate Leverage (Debt-to-Equity) | Declined to ~0.7x in FY25 (compared to 1.1x in FY20) |
| Non-Food Bank Credit Growth | Expanded 18.8% year-on-year in August |
| Services Sector Credit Growth | Rose 24.3% during the review period |
Sectoral credit drivers and banking system liquidity
While infrastructure, power, capital goods, and auto components led positive rating upgrades, export-oriented segments like textiles and specialty chemicals faced margin pressures. Specifically, K. H. Patnaik, Chief Ratings Officer at BWR, noted that public spending and steady domestic demand anchored industrial resilience.
Furthermore, banking system liquidity remained robust, with non-food bank credit expanding by 18.8 per cent year-on-year in August, far outpacing the 10.2 per cent growth recorded a year earlier. Therefore, as India infrastructure power funding momentum accelerates, robust commercial credit demand will continue supporting broader economic expansion.
