Fitch expects 6% revenue growth for Indian corporates in FY27 amid GDP boost

While domestically focused sectors are expected to remain stable, sustained higher tariffs could affect operating performance across more companies, highlighting both growth potential and downside risks for FY27.

Fitch Ratings on Tuesday said the aggregate revenue for its rated corporates will rise by 6 per cent in FY27 on steady GDP growth and an improved consumer-spending outlook, following a comprehensive reduction in GST rates.

However, corporates could face some downside risks if additional US tariffs are imposed or in case of a sharp depreciation of the rupee.

Growth outlook

Fitch has recently revised India’s GDP growth forecast for FY26 to 7.4 per cent, from 6.9 per cent, and expects annual growth of 6.4 per cent and 6.2 per cent over FY-27 and FY28, respectively.

Infrastructure demand

The rating agency expects GDP growth and robust infrastructure spending to underpin healthy demand for cement and building materials, electricity, petroleum products, steel, and engineering and construction (E&C) companies during FY27.

Tariff exposure

Fitch-rated Indian corporates generally have low direct exposure to the current US tariffs, but unaffected sectors, including pharmaceuticals, could be hit by further US tariff announcements.

Domestic stability

Direct effects on domestically focused sectors, such as oil and gas (upstream and downstream), cement and building materials, engineering and construction, telecom, and utilities, should be minimal, supported by local demand and regulatory stability.

Downside risks

Potential additional tariffs, if sustained at levels significantly higher than in other Asian markets, could weigh on economic growth, affecting the operating performance of more Indian companies, Fitch said.

The steel and chemicals sectors will face pricing pressure if US tariffs divert supply to other markets, including India, Fitch added.

Published on January 20, 2026