Consumer & healthcare best placed most sectors stable, says Brickwork

India's consumer goods and healthcare services as two sectors with a positive outlook in the current fiscal year helped by factors like tax cuts, consumer demand, strong interest and debt coverage ratios and a growing medical tourism market, rating agency Brickwork said.

"The consumer goods sector is expected to witness a revenue growth of 17.3% CAGR in the 2025-2030 period on account of credit growth, GST cuts, unlocking of demand from Tier-II/Tier III cities, and premiumisation. Meanwhile, tailwinds for the healthcare services sector include strong interest and debt coverage ratios, a medical tourism market of an estimated USD 13 billion, and expansion of the Ayushman Bharat Program to senior citizens over the age of 70," the rating agency said.

Brickwork reviwed 25 sectors out of which 22 were rated stable and only one, Power Distribution segement rated negative.

The power distribution segment remains weak due to elevated and unsustainable debt levels which is reflected in the weak credit profile and continued cash gap created due to muted / delayed tariff hikes, Brickwork said.

"DISCOMS which have identified and reduced distribution losses and improved collection efficiency will be better positioned to curb losses and meet the LPS terms,” said Niraj Rathi, senior director, ratings, Brickwork.

The rating agency expects a stable credit outlook across 22 of its 25 rated sectors in FY27, supported by resilient domestic demand, sustained government capital expenditure, healthy balance sheets, improving operating margins, and predictable cash flows despite geopolitical uncertainties.

Technology, automobiles, telecom, infrastructure, logistics, industrials, and power generation benefit from deleveraging, policy support, export opportunities under new trade agreements, and long-term demand visibility.

“While sectors such as chemicals and textiles face margin pressures, and transport and airports remain relatively leveraged, their credit profiles are supported by strong solvency, improving profitability, and stable revenue visibility,” said K. H. Patnaik, chief ratings officer, Brickwork Ratings.