ICRA: Corporate Credit Resilient in FY26 with Record Upgrades, Geopolitical Risks Loom

• ICRA reports corporate credit profiles remained resilient in FY26, with upgrades significantly outpacing downgrades.
• FY26 saw 388 upgrades vs. 124 downgrades, a credit ratio of 3.1 times, up from 2 times in FY25.
• Power, real estate, hotels, auto components, and road sectors drove upgrades; microfinance and chemicals faced stress.
• External headwinds reduced by US tariff alleviation and India-EU trade agreement, but West Asia conflict reintroduces risks.
• Geopolitical developments and global trade uncertainties are key monitorables for credit quality in FY27.