Latest news with #ICRA.The
Time of India
5 days ago
- Business
- Time of India
Indian defence entities projected to see revenue expansion of 15-17% in FY26: Report, ET Manufacturing
Advt Advt Entities operating in the Indian defence sector are expected to sustain robust growth momentum, with likely revenue expansion of 15-17 per cent in FY26, a report showed on healthy revenue growth is primarily driven by strong execution progress on the back of a robust order book position, with order book/operating income (OB/OI) ratio at 4.4 times as of FY25 end, according to an ICRA the years, the government has implemented numerous policy initiatives, with ' Atmanirbhar Bharat ' at its core, to enhance domestic defence production capabilities, encourage investments and expand include the liberalisation of FDI policies in the defence sector, continuation of the defence offset policy, establishment of two Defence Industrial Corridors and a sustained push towards indigenisation through the notification of five 'Positive Indigenisation Lists' and the online indigenisation portal ' SRIJAN '."These apart, the government has also increased the budgetary outlay for the sector with a thrust towards capital outlay, which has grown at a CAGR of 8.29 per cent over the previous five years to Rs 1.92 lakh crore in FY2026 budget estimates (BE)," the report these initiatives, the expenditure on defence procurement from domestic vendors has increased from 61 per cent in FY2017 to about 75 per cent in FY2025, while exports have grown by more than 15 times and at a healthy CAGR of 41 per cent to Rs 23,622 crore during FY2017-FY2025 period."Entities across the entire spectrum of defence production - land, naval, aeronautical , armaments and ammunition and ICT2 - will benefit from the sustained expansion in budgetary outlay since 2015, which is expected to translate into healthy order inflows as the government continues to increase domestic procurement," said Suprio Banerjee , Vice President and Co-Group Head, Corporate Ratings, weighted average operating margins are expected to remain healthy at 25-27 per cent for FY2026, supported by economies of scale, rising localisation, with entities beginning to undertake the production of more value-accretive system-level products, compared to the earlier sub-component/assemblies manufacturing, Banerjee the land and ICT-based segments are expected to see increased private sector participation, the defence public sector undertakings (DPSUs) continue their dominance in the naval, aerospace and armaments segments.
India Gazette
29-05-2025
- Business
- India Gazette
Gold jewellery consumption set for double-digit growth despite volume dip: ICRA
ANI 29 May 2025, 14:40 GMT+10 New Delhi [India], May 29 (ANI): Domestic gold jewellery consumption in India is projected to expand by a significant 12-14 per cent in value terms in fiscal year 2026, according to a recent report by ICRA. Gold prices surge by 33 per cent in FY25, ICRA says prices will continue to surge in FY26.'This will be supported by continued gold price appreciation, planned retail expansion, and market share gains from the unorganised segment. A higher number of auspicious days in the fiscal is also expected to lend some support to demand, despite elevated prices and declining volumes,' said Jitin Makkar, Senior Vice President and Group Head, previous fiscal year saw a substantial 28 per cent increase in the value of gold jewellery consumption, largely driven by a 33 per cent surge in gold prices. ICRA anticipates a similar pattern in the current fiscal, with gold prices currently trending approximately 20 per cent higher than the FY2025 this robust value growth, ICRA forecasts a decline of 9-10 per cent in domestic gold jewellery consumption volumes in FY2026, after a 7 per cent drop in to the report, 'consumption of bars and coins had risen by 17 per cent and 25 per cent, respectively in FY2024 and FY2025, reflecting investor preference for safe-haven assets amid global macroeconomic uncertainty and heightened geopolitical and trade tensions.' ICRA says this trend for demand of bars and coins is likely to grow by around 10 per cent, accounting for 35 per cent of the total gold report also indicates that while operating margins for jewellers are expected to improve by approximately 30 basis points to 7.2 per cent in FY2026, net margin expansion may be limited due to higher financing costs.'Despite a projected 30 bps expansion in operating margins in FY2026, net margin expansion will remain limited within 10 basis points due to higher financing costs stemming from elevated GML rates and increased working capital borrowings driven by high gold prices and planned store additions,' Jitin Makkar added. (ANI)
