Consumer goods and healthcare services are expected to experience significant revenue growth in the coming years, with the consumer goods sector projected to see a 17.3% CAGR between 2025 and 2030, as per a report by Brickwork Ratings. Factors such as credit growth, GST cuts, increased demand from Tier-II/Tier III cities, and premiumization are driving the robust revenue growth in the consumer goods sector.
On the other hand, the healthcare services sector is also poised for growth, supported by strong interest and debt coverage ratios, a $13 billion medical tourism market, and the extension of the Ayushman Bharat Programme to seniors above 70 years old. The report forecasts a stable economic outlook with a 7.7% GDP growth in FY26, backed by robust manufacturing and services activities, with a projected growth of 6.7% in FY27.
Rajeev Sharan, Head of Research at Brickwork Ratings, mentioned that inflation is expected to be around 4.6% in FY27, with geopolitical risks and El Niño being key areas to monitor. The RBI’s neutral monetary stance, coupled with a cumulative 125 bps repo rate reduction to 5.25% by 2025, aims to maintain policy flexibility amidst external shocks.
The report also indicates a stable credit outlook for 22 out of 25 rated sectors in FY27, driven by strong domestic demand, government capital expenditure, healthy balance sheets, improving operating margins, and consistent cash flows despite global uncertainties. Sectors like technology, automobiles, telecom, infrastructure, logistics, industrials, and power generation are set to benefit from deleveraging, policy support, export opportunities under new trade agreements, and long-term demand visibility.
K. H. Patnaik, Chief Ratings Officer at Brickwork Ratings, highlighted that while sectors such as chemicals and textiles may face margin pressures, and transport and airports are relatively leveraged, their credit profiles are supported by strong solvency, improving profitability, and stable revenue visibility. The Power Distribution segment received a negative-to-stable rating due to high and unsustainable debt levels, reflecting a weak credit profile and ongoing cash gaps from muted or delayed tariff hikes.
Niraj Rathi, Senior Director – Ratings at Brickwork, emphasized that power distribution companies improving distribution losses and enhancing collection efficiency will be better positioned to manage losses and meet LPS terms. From a macroeconomic perspective, Brickwork Ratings affirmed that India’s macroeconomic environment remains robust, offering a favorable backdrop for credit quality despite heightened geopolitical uncertainties.
