Crisil Ratings warns Indian margins could fall 200 basis points
Business
Indian businesses are bracing for slimmer profits this fiscal year (FY2026-27), with Crisil Ratings warning that the West Asia conflict may cut operating margins by 200 basis points.
Higher crude prices, supply chain hiccups, and a weaker rupee are making things tougher, but steady domestic demand and solid company finances should help most firms stay afloat.
Ceramics hardest hit, exporters may gain
Crisil found that 22 out of 34 sectors could see operating profitability drop by more than 10%, with ceramics facing the biggest blows due to gas shortages and supply disruptions.
On the flip side, export-focused industries like pharma, electronics, and garments might actually get a boost from the weaker rupee, making their products more attractive abroad.