Latest news with #SuprioBanerjee
Time of India
5 hours ago
- Business
- Time of India
Defence revenue seen rising 15–17% in FY26, Icra says strong order book and localisation to lift margins, capital outlay hits Rs 1.92 lakh crore
AI generated image NEW DELHI: India's defence manufacturing sector is expected to witness 15–17% revenue growth in FY2025–26, driven by a strong execution pipeline, robust order book position, and sustained government focus on domestic procurement, according to a report released by Icra on Tuesday. The industry's order book to operating income (OB/OI) ratio stood at 4.4 times as of FY25-end, indicating solid revenue visibility going into the next financial year. 'Entities across land, naval, aeronautical, armaments and ICT verticals are expected to benefit from continued budgetary support and localisation efforts, which will boost order inflows and execution,' said Suprio Banerjee, Vice President & Co-Group Head, Corporate Ratings, Icra, ANI reported. Icra projected that the sector's operating margins will remain strong at 25–27% in FY26, supported by scale, localisation, and a shift towards value-accretive system-level production rather than component assembly. The Atmanirbhar Bharat initiative has played a pivotal role in strengthening India's domestic defence production capacity. As a result, procurement from domestic vendors rose from 61% in FY2017 to 75% in FY2025 (estimated). by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Eat 1 Teaspoon Every Night, See What Happens A Week Later [Video] getfittoday Undo India's defence exports have also surged 15-fold, registering a CAGR of 41% to reach Rs 23,622 crore between FY2017 and FY2025e, the report said. The Centre has backed this growth with a consistent increase in capital spending. The budgetary outlay for defence has risen at a CAGR of 8.29% over the past five years, reaching Rs 1.92 lakh crore in the FY26 Budget Estimate. Despite healthy topline and profitability trends from FY2015–25, Icra flagged working capital management as a continued challenge, particularly for private sector players in the defence space. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
India Gazette
7 hours ago
- 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
7 hours ago
- 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.
Time of India
8 hours 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.
