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Capital goods industry likely to witness revenue growth of 12-14% this fiscal: Crisil Ratings
May-25-2026

Crisil Ratings in its latest report has said that the capital goods industry is likely to witness a revenue growth of 12-14% this fiscal which will be similar to last fiscal, on account of sustained government spending, steady capacity expansion in power, mining, oil and gas, metal and auto-linked sectors, and increasing opportunities from emerging segments such as data centres and electric vehicle (EV) infrastructure.

As per the report, the ongoing developments in West Asia are unlikely to materially impact growth as diversified order books and limited regional exposure to the middle east provide a cushion with revenue largely accruing from the domestic market. Besides, strong execution, long-term client relationships and improved operating leverage despite geopolitical cost pressure, are expected to keep the operating margin range-bound at 12-13% this fiscal.

The rating agency further stated that power capacity additions of 58-62 gigawatt (GW) this fiscal, led by renewables, should boost demand for heavy engineering and equipment. Transmission capex is expected to stay strong, driven by renewable integration, rising demand and grid modernisation. Besides, railway capex is set to recover, supported by expansion and modernisation, while defence spending continues to rise with a focus on indigenisation.


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