The credit profile of Indian companies remained resilient in the first half the current fiscal year (April to September) despite the <a href="https://www.mid-day.com/business/business-news/article/indian-economy-shows-resilience-amid-global-uncertainties-rbi-bulletin-23646722" target="_blank" rel="none noopener">challenges due to the West Asia crisis</a>, according to rating agencies.
The credit profile is a financial account detailing the borrowing history, overall financial health, and repayment history.&nbsp;
Rating agency Ind-Ra said the corporate credit profile&nbsp; remained strong in the first half of 2026-27 fiscal year despite the West Asia conflict, reported news agency PTI.
"The corporate credit profile continued to show resilience through 1HFY27, with downward rating actions attributable to the conflict confined to a handful of issuers," Ind-Ra, Senior Director, Head of Credit Policy Group, Arvind Rao said.
The agency had earlier indicated that the West Asia conflict would test the balance sheet strength that corporate India had built since FY22.&nbsp;
Similarly, Crisil Ratings noted that the <a href="https://www.mid-day.com/news/world-news/article/middle-east-war-iran-threatens-to-disrupt-all-oil-exports-from-region-23652541" target="_blank" rel="none noopener">conflict in West Asia</a> and the resulting trade and supply chain disruptions have persisted for seven months.
"Even so, Indian corporates have demonstrated considerable adaptability by diversifying sourcing channels, reconfiguring logistics networks and selectively passing through higher costs. This agility, coupled with strong balance sheets reflected in a median debt-to-equity ratio of around 0.5 time, has contained the impact of the West Asia crisis on overall corporate credit quality," it said.
<h2>Ind-Ra upgrades and downgrades during April to September</h2>
During April to September this year, it upgraded the rating of 190 issuers and downgraded the rating of 63 issuers , and said the upgrade and downgrade intensity both held close to FY26 levels as much of the shock was absorbed before it reached corporate cost structures.
The agency said that rating upgrades were largely broad based across the investment, consumption, and service sectors strengthened by supportive policy measures and strong domestic demand.
<a href="https://www.mid-day.com/news/india-news/article/strait-of-hormuz-crisis-india-ensured-uninterrupted-fuel-supply-through-diversified-imports-says-union-petroleum-minister-23643689" target="_blank" rel="none noopener">Diversified crude sourcing</a> secured supply, and the government and oil marketing companies bore the bulk of the price increase, passing on only a limited part to retail fuel prices, it noted.
It further said that revenue growth was strong, and profits, outside oil marketing companies, grew at a healthy pace.
Investment-linked sectors, including infrastructure, construction, and capital goods, recorded a high number of upgrades, supported by sustained capital inflows. Consumption and services sectors such as automobiles, consumer durables, commercial realty, and healthcare benefited from a healthy demand.
Downgrades were largely concentrated in sectors exposed to volatility in raw material prices and execution uncertainties associated with contract awards, such as auto components and construction materials, while some rating actions were driven by issuer-specific stress in sectors such as capital goods, it said.&nbsp;
<h2>Crisil Ratings upgrades and downgrades</h2>
Similarly, Crisil Ratings credit ratio, which measures the proportion of rating upgrades to downgrades, improved to 2.18 times in the first half of this fiscal from 1.50 times in the second half of last fiscal (October to March).
Overall, there were 464 upgrades and 213 downgrades during the period, it said.
"In our latest assessment of 34 sectors exposed to the West Asia conflict, only three sectors, accounting for less than 1 per cent of rated corporate debt, carry a negative or moderately negative credit quality outlook this fiscal," Subodh Rai, Managing Director, Crisil Ratings said.
(With inputs from PTI)

It said policy measures and a resilient domestic demand helped the investment, consumption, and service sectors

Corporate credit profile remains strong in Apr to Sep despite West Asia conflict

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Rating upgrades were largely broad based across the investment, consumption, and service sectors strengthened by supportive policy measures and strong domestic demand.

Corporate credit profile remains strong in April to September despite West Asia conflict

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