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India Gazette
3 days ago
- Business
- India Gazette
General Insurance Industry premium income to grow by 8.7% in FY2026 and 10.9% in FY2027: ICRA
ANI 02 Jun 2025, 13:41 GMT+10 New Delhi [India], June 2 (ANI): The Indian general insurance industry is expected to witness strong growth in the coming years, according to a recent report by Investment Information and Credit Rating Agency (ICRA).ICRA projects the industry's gross direct premium income (GDPI) to grow by 8.7 per cent in FY2026 and 10.9 per cent in FY2027. This growth is attributed to the improvement in economic activity and increased pricing the agency forecasts the general insurance industry's GDPI to increase from an estimated Rs. 2.97 trillion in FY2025 to between Rs. 3.21-3.24 trillion in FY2026, and further to Rs. 3.53-3.61 trillion in FY2027. 'GDPI growth is expected to improve in FY2026 supported by pricing discipline in commercial lines and low base, continued growth in health and increase in vehicle sales vis-a-vis FY2025, partly offset by the impact of 1/n,1 which is expected to continue in H1 FY2026,' said Neha Parikh, Vice President and Sector Head - Financial Sector Ratings, to the forecast, ICRA suggests that private insurers are likely to experience stronger growth, while public sector insurers' growth is expected to be moderate due to their weak capital underwriting performance of private insurers is expected to get better, driven by better pricing discipline. According to Investopedia, Underwriting is the process through which an individual or institution takes on financial risk for a estimates a substantial capital requirement of Rs. 152-170 billion for three PSU general insurers (excluding New India Assurance) to achieve a solvency ratio of 1.5 times by March 2026, assuming full forbearance on the Fair Value Change Account (FVCA), given their weak ICRA projects the return on equity (RoE) for private insurers to improve to 12.6% in FY2026 and 12.8% in FY2027. (ANI)
India Gazette
28-05-2025
- Business
- India Gazette
India's electricity demand to grow at 6-6.5% over next 5 years: ICRA
ANI 28 May 2025, 16:10 GMT+10 New Delhi [India], May 28 (ANI): Investment Information and Credit Rating Agency (ICRA) on Wednesday, forecasted that electricity demand to grow by 6.0-6.5 per cent over next five years, supported by increasing adoption electric vehicles, the expansion of data centers and the development of green hydrogen segments.'These three segments are expected to contribute to 20-25% of the incremental demand over the next five-year period from FY2026 to FY2030. The growth in demand for grid capacity is expected to be offset to some extent by the rising adoption of rooftop solar and off-grid projects, driven by schemes such as the PradhaThen Mantri Surya Ghar Yojana,' said Vikram V, Vice President & Co-Group Head - Corporate Ratings, EV segment is expected to see a rise in penetration across the segments, with three-wheelers leading the adoption followed by two-wheelers, e-buses and passenger vehicles, the report ICRA expects a healthy thermal plant load factor (PLF) of 70 per cent for the fiscal year 2026, based on an expected demand growth of 5.0-5.5 per also sees a significant addition to the power generation capacity, reaching an all-time high of 44 GW in FY2026, up from 34 GW in FY2024. This capacity increase is expected to be driven by both renewable and thermal energy to that ICRA said, 'The thermal segment is expected to add 9-10 GW capacity in FY2026, with the balance largely contributed by the RE (renewable energy) segment. While RE would remain the key driver of the generation capacity addition, going forward, the thermal segment has seen an increase in under-construction capacity over the past 12 months and currently stands at over 40 the agency believes that, this FY2026 demand growth of 5.0-5.5 per cent, is slightly lower than its GDP growth expectation of 6.5 per cent for the same period. The agency attributes this to the anticipated early onset and above-average monsoon, which typically reduces the demand for cooling and from the agricultural sector. (ANI)
Time of India
19-05-2025
- Business
- Time of India
ICRA revises telecom tower industry's rating to stable from negative
New Delhi: Investment Information and Credit Rating Agency (ICRA) on Monday, revised its outlook for telecom tower industry to stable from negative, helped by the timely payments from key customers, along with the clearance of past over dues, which has eased the receivables cycle of the telecom tower companies. According to ICRA, the situation has improved drastically "with consistent, timely payments to the tower companies," leading to a reduction in receivable days to around 45-60 days, which is lower than ICRA's negative outlook threshold of 80 days. "Improvement in the credit profile of some key telecom service providers, who are the customers for tower companies, has eased the working capital cycle of tower companies. Moreover, there has been clearance of a sizeable amount of past over dues, which has resulted in reversal of provisions made earlier in FY2023," said Ankit Jain, Vice President and Sector Head, Corporate Ratings, ICRA Ltd. "The collections are expected to remain timely, going forward, thereby restricting the industry debtor levels below 60 days. This will also result in a reduction in external debt, with ICRA projecting net external debt/OPBDITA at around 3.4x for FY2026," he added. The improved credit quality has helped to boost the demand for telecom services, especially data, which would lead to consistent network expansion and upgradation by the telcos. "This is keeping the demand for tower companies buoyant, resulting in consistent additions in the tenancies," the release by ICRA added. ICRA sees the tower industry is likely to see an operating income growth of 4-6 per cent with operating margins at around 70-75 per cent for FY2026. "These along with easing of the working capital requirements, is likely to boost the liquidity position with the cash balances of the industry increasing to around Rs. 5,500-6,000 crore from Rs. 2,200-3,000 crore levels in the past." the agency added.
India Gazette
19-05-2025
- Business
- India Gazette
ICRA changes telecom tower industry's rating to Stable from Negative
New Delhi [India], May 19 (ANI): Investment Information and Credit Rating Agency (ICRA) on Monday, revised its outlook for telecom tower industry to stable from negative, helped by the timely payments from key customers, along with the clearance of past over dues, which has eased the receivables cycle of the telecom tower to ICRA, the situation has improved drastically 'with consistent, timely payments to the tower companies,' leading to a reduction in receivable days to around 45-60 days, which is lower than ICRA's negative outlook threshold of 80 days.'Improvement in the credit profile of some key telecom service providers, who are the customers for tower companies, has eased the working capital cycle of tower companies. Moreover, there has been clearance of a sizeable amount of past over dues, which has resulted in reversal of provisions made earlier in FY2023,' said Ankit Jain, Vice President and Sector Head, Corporate Ratings, ICRA Ltd.'The collections are expected to remain timely, going forward, thereby restricting the industry debtor levels below 60 days. This will also result in a reduction in external debt, with ICRA projecting net external debt/OPBDITA at around 3.4x for FY2026,' he added. The improved credit quality has helped to boost the demand for telecom services, especially data, which would lead to consistent network expansion and upgradation by the telcos. 'This is keeping the demand for tower companies buoyant, resulting in consistent additions in the tenancies,' the release by ICRA added. ICRA sees the tower industry is likely to see an operating income growth of 4-6 per cent with operating margins at around 70-75 per cent for FY2026. 'These along with easing of the working capital requirements, is likely to boost the liquidity position with the cash balances of the industry increasing to around Rs. 5,500-6,000 crore from Rs. 2,200-3,000 crore levels in the past.' the agency added. (ANI)
Time of India
28-04-2025
- Automotive
- Time of India
ICRA warns of hit up to Rs 4,500 crore to Indian auto component exporters amid US tariffs
AI-generated representative image The automotive component sector in India is facing significant challenges due to new US tariff implementations, which are expected to substantially impact earnings of exporters, according to Investment Information and Credit Rating Agency (ICRA). The tariffs introduced by Donald Trump in April, just months after his return to White House, could reduce operating profits by Rs 2,700–4,500 crore, representing 10–15 per cent of component exporters' operating profits and 3–6 per cent of the overall industry operating profits. For FY2026, ICRA forecasts revenue growth for the sector — based on 46 key organisations with combined annual revenues exceeding Rs 3 lakh crore in FY2024 — to moderate to 6–8 per cent, down from the earlier projection of 8–10 per cent. This revision is primarily attributed to an anticipated decline in US exports following the substantial hike in import duties. Industry operating margins are projected to decline by 50–100 basis points (bps) to 10.5–11.5 per cent in FY2026, while exporters could face a sharper contraction of 150–250 bps. Despite these pressures, ICRA expects most exporters to maintain satisfactory debt metrics and liquidity, although margin erosion and higher working capital requirements are likely. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Click Here - This Might Save You From Losing Money Expertinspector Click Here Undo "While the auto component suppliers with whom ICRA has interacted indicate that most of the incremental costs would be passed on, the extent of pass-through would depend on the supplier's criticality, share of business, competition, and the technological intensity of the components supplied," said Shamsher Dewan, senior vice president and head, Corporate Ratings Group, ICRA Limited. Dewan also flagged concerns about increasing economic uncertainty, slowing vehicle sales, and weak replacement demand in the US market, alongside intensifying competition in European and Asian export markets. The new tariffs impact approximately 65 per cent of India's auto component exports. While India has temporarily suspended reciprocal tariffs for 90 days, an ad valorem duty of 10 per cent remains applicable. ICRA notes that India could gain a medium-term advantage if it strengthens cost competitiveness relative to China, especially as global OEMs reassess their sourcing strategies. In recent weeks, Indian manufacturers have seen a rise in enquiries from US importers, suggesting potential new opportunities despite current challenges. In a related development, as US-India delegation prepare to for formal trade talks, a report from last week indicated that India is preparing to formally request the US for relaxed export controls and enhanced access to advanced technologies under the proposed bilateral trade agreement (BTA), according to sources quoted by news agency PTI. India's reported concessions that have been requested mirror the privileges the US has extended to strategic partners such as Australia, the United Kingdom, and Japan. The Indian government is pursuing enhanced market access across various technological domains, including telecommunications equipment, biotechnology, artificial intelligence (AI), pharmaceuticals, quantum computing, and semiconductors. Simultaneously, India is advocating for lower tariffs on its labour-intensive export products, encompassing textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas. Read more: India to seek relaxed export controls and tech access in bilateral trade deal with US, claims report Stay informed with the latest business news, updates on bank holidays and public holidays . Master Value & Valuation with ET! Learn to invest smartly & decode financials. Limited seats at 33% off – Enroll now!
