Crisil says Indian firms can absorb 50-bps RBI rate hike

Crisil Ratings stated that Indian companies can absorb a 50-basis-point interest rate hike due to strong balance sheets and low leverage, though some sectors may face pressure. The agency's analysis shows a 50-basis-point increase would lower median interest coverage by about 20 basis points, keeping it around 5.0 times. Infrastructure sectors remain resilient, but commercial real estate could see moderate impact on debt-service coverage. Crisil expects bank credit growth of 14.5–15.5% in FY27, with stable bank credit profiles. Broader risks include geopolitical tensions, supply-chain disruptions, elevated crude prices, and weather-related stress on rural incomes.