Infrastructure and Power Sectors to Lead India’s Funding Demand in H2FY27.

Strong project execution, public spending and resilient corporate balance sheets to support financing activity, says Brickwork Ratings.
  India’s infrastructure, power and commercial real estate sectors are expected to drive funding demand in the second half of FY27, supported by ongoing projects, healthy cash flows and sustained government expenditure, according to a report by Brickwork Ratings (BWR). India Inc’s credit profile remained resilient in April–September 2026, despite elevated crude oil prices, below-normal monsoon rainfall and tighter global financial conditions. The ratio of credit rating upgrades to downgrades improved to 2.7 times in H1FY27, compared with 2.4 times a year earlier. Downgrades declined 11% year-on-year, while upgrades remained broadly stable. Infrastructure, power, capital goods, auto components and secondary steel led rating improvements, reflecting strong domestic demand and public investment. Corporate leverage also improved, with the debt-to-equity ratio declining to approximately 0.7 times in FY25 from 1.1 times in FY20. Meanwhile, non-food bank credit grew 18.8% year-on-year in August 2026. Commercial real estate also remained a key contributor, supported by strong office demand across major markets. However, corporate bond issuances fell 34% during April–June.