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Time of India
08-08-2025
- Business
- Time of India
Bengaluru tops India's office leasing charts as vacancy hits decade low: ICRA
Bengaluru has emerged as the frontrunner in India's commercial office market, with record leasing activity pushing vacancy levels to a decade low, according to Investment Information and Credit Rating Agency (ICRA). As of June 30, the total Grade A office stock across the top six cities stood at approximately 1,030 msf, with Bengaluru commanding the largest share at 26 per cent, followed by Delhi-NCR with 19 per cent and the Mumbai Metropolitan Region (MMR) with 18 per cent, stated a press release issued by ICRA on Friday. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program The IT hub is expected to see vacancy ease further from 9.8 per cent to 9.0-9.5 per cent in FY2026, said ICRA. Beyond Bengaluru, Chennai is expected to maintain stable vacancy levels at 9.0-9.5% per cent with approximately 5 million square feet (msf) of new additions. Delhi-NCR is projected to witness a slight improvement, with vacancy levels easing from 22.4 per cent to 21.5-22 per cent, alongside 12 msf of supply. Live Events Hyderabad is expected to remain steady with a vacancy range of 17.5-18 per cent and 15.5 million square feet of new space. MMR and Pune are also anticipated to register a decline in vacancy rates, reflecting continued demand and robust net absorption across key markets. ICRA expects this trend to persist through March 2026, supported by consistent demand from Global Capability Centres (GCCs), Banking, Financial Services and Insurance (BFSI) institutions, flex-space operators, and domestic IT-BPM firms, Abhishek Lahoti, Assistant Vice President and Sector Head, Corporate Ratings, ICRA, is quoted as saying. The projected new supply for FY2026 in India is estimated at around 63-64 msf. Economic Times WhatsApp channel )
Hindustan Times
07-08-2025
- Business
- Hindustan Times
How Trump tariffs could impact India's oil purchase from Russia: Explained
India finds itself in a tight spot as it faces United States' crushing 50 per cent tariffs, half of which are a punishment for doing business with Russia. While the US move comes as a strategy to pressurise Russia into stopping the war with Ukraine, it is India which is at the receiving end too, analysts say. Moving away from purchasing oil from Russia may have political repercussions for India as it could be seen as giving into the US' pressure.(AP) Understanding India's oil trade with Russia In the last fiscal year, India saved around $3.8 billion on its oil purchases on discounted prices from Russia, according to Investment Information and Credit Rating Agency (ICRA), reported Bloomberg. However, its exports to the US in 2024 touched around $87 billion, a far bigger figure. India was never a big Russian oil purchaser traditionally, and even until 2021, and mostly depended on the Middle-East, the report said. That changed in 2022 when Russia invaded Ukraine and the Group of Seven (G7) nations placed a price cap on Russian oil at $60 per barrel, aiming to curb Moscow's oil revenues. India was allowed to buy under this cap, which made the Russian oil available at discounted prices, and went on to increase its oil purchase from Russia, added the report. Also read: 'India is ready for it': PM Narendra Modi after Donald Trump tariff hit, backs farmers' interest This came at the expense of its traditional oil suppliers such as Saudi Arabia, Iraq and Nigeria. Today, Russia makes for around a whopping 37 per cent of India's total oil imports, according to Kpler, a data analytics firm, making India one of Russian crude's two top buyers along with China. Officials have said the move to increase oil imports from Russia was aimed at avoiding a supply shortage and to keep prices from inflating too much. Until recently, the US seemed comfortable with this approach. While visiting India last year, US Treasury officials said the price cap was 'a mechanism for India and other partners to access Russian oil at discounted prices' and did not express any intention to curb India's Russian oil purchase. However, Trump's distance from this position has caught India off-guard, say experts. Also read: Trump's first round of tariffs on India kicks in: 'Billions of dollars now flowing into US' What experts say 'Everyone understands Trump's aim is to try and pressure Putin, but to do it with a gun on India's shoulder is not going down well with New Delhi,' Bloomberg quoted Vandana Hari, founder of consultancy Vanda Insights, as saying. Looking at the difference between how much India benefits from Russian oil purchase and how much it exports to the US, Warren Patterson, head of commodities strategy at ING Groep NV in Singapore, said, 'If you look at the size of India's trade with the US, and look at how much savings India gets from buying Russia crude, it's pretty clear what India would do… Are you going to risk up to $87 billion worth of exports to the US in order to save a few billion from oil discounts?' Also read: 'Could happen': Donald Trump on if China faces India-like additional tariffs for buying Russian oil Can India stop purchasing oil from Russia? At present, the crude prices are below $70 and global supply is ample, the report said. In May, Indian buyers were paying only $4.50 less per barrel for Russian crude compared to the oil it imported from Saudi Arabia. This was a huge drop from 2023, when the discount exceeded $23 a barrel. This means that theoretically India could move away from Russian oil imports without much hurt. According to Shilan Shah of Capital Economics, the cost of shifting suppliers away from Russia is 'not actually that big'. 'It feels like a political decision rather than an economic one. India doesn't want to be seen caving to Trump's demands. India and Russia have pretty longstanding trade relations, which I think India would be keen to maintain,' he said. How are Indian oil buyers reacting The Indian oil company executives are unsure at the moment on where to purchase the oil from, since no clear instructions have been given so far by the government, the Bloomberg report said. State-run oil companies, which usually buy Russian oil through spot deals, are 'already staying on the sidelines', people familiar with the matter told Bloomberg on condition of anonymity. (With inputs from Bloomberg)
India Gazette
18-06-2025
- Business
- India Gazette
India's Defence sector to see revenue grow of 15-17% in FY 2026: ICRA
ANI 18 Jun 2025, 14:45 GMT+10 New Delhi [India], June 18 (ANI): Entities in the Indian Defence sector are expected to witness robust growth momentum, with expected revenue expansion of 15-17 per cent in FY2026, according to a report by Investment Information and Credit Rating Agency (ICRA).This growth is attributed to strong execution progress on the back of a robust order book position and order book/operating income (OB/OI) ratio at 4.4 times as of FY2025 end.'As per ICRA's analysis, entities across the entire spectrum of Defence production - land, naval, aeronautical, armaments & 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, ICRA. With rising localisation, the operating margins of companies will remain healthy in FY2026.'The 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 of India various initiatives such as Atmanirbhar Bharat has enhanced domestic Defence production capabilities, encouraging investments and expanding exports. These initiatives have led to increased Defence procurement from domestic vendors from 61 per cent in FY2017 to about 75 per cent in FY2025e, while exports have seen growth more than 15 times and at a healthy CAGR of 41 per cent to Rs. 23,622 crore during FY2017-FY2025e the government has also raised 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 BE.'While revenues and profitability have grown on a sustained basis during FY2015- 25, working capital management has remained a challenge for the private players in this segment,' Banerjee noted. (ANI)
Time of India
18-06-2025
- Business
- Time of India
India's defence sector to see revenue grow of 15-17% this fiscal year: ICRA
Entities in the Indian defence sector are expected to witness robust growth momentum, with expected revenue expansion of 15-17 per cent in FY2026, according to a report by Investment Information and Credit Rating Agency (ICRA). This growth is attributed to strong execution progress on the back of a robust order book position and order book/operating income (OB/OI) ratio at 4.4 times as of FY2025 end. "As per ICRA's analysis, entities across the entire spectrum of Defence production - land, naval, aeronautical, armaments & 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, ICRA. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Upto 15% Discount for Salaried Individuals ICICI Pru Life Insurance Plan Get Quote Undo With rising localisation, the operating margins of companies will remain healthy in FY2026. "The 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 added. Live Events Government of India various initiatives such as Atmanirbhar Bharat has enhanced domestic Defence production capabilities, encouraging investments and expanding exports. These initiatives have led to increased Defence procurement from domestic vendors from 61 per cent in FY2017 to about 75 per cent in FY2025e, while exports have seen growth more than 15 times and at a healthy CAGR of 41 per cent to Rs. 23,622 crore during FY2017-FY2025e period. Additionally, the government has also raised 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 BE. "While revenues and profitability have grown on a sustained basis during FY2015- 25, working capital management has remained a challenge for the private players in this segment," Banerjee noted.
India Gazette
09-06-2025
- Business
- India Gazette
India's hospitality sector to see revenue grow of 6-8% in FY 2026: ICRA
New Delhi [India], June 9 (ANI): The Indian hospitality sector is projected to see a revenue growth of 6-8 per cent in fiscal year 2026, according to a report by Investment Information and Credit Rating Agency (ICRA). ICRA also revised its outlook for the sector to 'Stable' from 'Positive' following three consecutive years of double-digit revenue expansion for the industry from FY2023 to premium hotel occupancy is estimated to remain robust at 72-74 percent in FY2026, a slight increase from the 70-72 per cent levels observed in FY2024 and FY2025. Additionally, the average room rates (ARRs) for premium hotels are expected to reach Rs 8,200-8,500 in FY2026, following healthy rates of Rs. 8,000-8,200 in FY2025. This rise in ARRs is attributed to lagging supply additions and ongoing renovation, refurbishment, and upgradation initiatives across several Makkar, Senior Vice President and Group Head - Corporate Ratings, ICRA Limited said that, 'After three years of strong demand, driven by favourable domestic leisure travel, demand from meetings, incentives, conferences and exhibitions (MICE), including weddings, and business travel, the growth in the Indian hospitality sector is forecast to normalise at 6-8% YoY in FY2026.'Although foreign tourist arrivals are expected to remain subdued in the coming months due to the recent terror attacks, a gradual recovery is anticipated. While, domestic tourism, which has been the primary demand driver, is expected to continue leading the way in the near term. Factors contributing to this growth include improvements in infrastructure and air connectivity, favorable demographics, and the projected increase in large-scale MICE events with the opening of new convention growth is expected to lag demand for the next 12-18 months. ICRA's premium room inventory database for 12 key cities indicates a compound annual growth rate (CAGR) of 4.5-5.0% in room inventory addition from FY2023-FY2026.A significant portion of this new supply is through management contracts and operating leases. Challenges in land availability in premium micro-markets of metros and larger cities are constraining supply, with new premium hotel supply largely coming from rebranding, property upgradation, and greenfield projects in the suburbs. (ANI)
