Fitch, however, said that some corporates could be vulnerable to a re-escalation of hostilities between the US and Iran, which could push up oil prices, fuel marketing losses and raise working capital needs at oil refining and marketing companies, pressuring free cash flow.
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“Chemical companies could also face higher costs, softer demand and pricier logistics. We would expect the related rise in inflation and weaker economic confidence to also curb discretionary consumer and corporate technology spending,” it said.
Besides, emerging El Nino risks and a weakening monsoon could cut wind generation at renewable companies and dampen crop protection demand at chemical companies. The broader economy would also suffer from sharper food inflation and lower rural income and demand, Fitch said.
In its India Corporates Credit Trends: July 2026, Fitch said accelerating revenue growth offset by cost pressure and lower EBITDA margins in some sectors should keep credit metrics stable for Indian corporates in Fitch Ratings’ portfolio in the financial year ending March 2027 (FY27).
Also read: Global developed market debt to hit record $75.8 trillion by end of 2026: Fitch“We expect aggregate revenue for rated corporates to rise by 9 per cent in FY27, stronger than our 5 per cent estimate for FY26. This will be driven by higher prices for natural resources and healthy demand for petroleum products, steel, power generation and transmission, cement and other building materials, and engineering and construction (E&C),” Fitch said.
This should be further supported by robust GDP growth of 6.4 per cent in FY27 (FY26 estimate: 7.4 per cent) and robust infrastructure spending.