Kolkata, New Delhi, INDIA. New York, USA.
Business To Business, Mumbai, 30th June, 2026: The debt-servicing capacity of listed private non-financial companies improved during the March quarter of 2025-26, with the interest coverage ratio (ICR) rising to 6.5, the highest level in the past two financial years, according to the Reserve Bank of India's Financial Stability Report (FSR).
The RBI said the improvement in the ICR, a key indicator of a company's ability to meet interest obligations from operating profits, was driven by a stronger sequential increase in gross profits compared with interest expenses.
Despite the improvement in overall debt-servicing capacity, the report noted that the share of financially vulnerable firms edged up during the quarter, indicating that stress persisted among a section of companies.
The findings underscore the overall resilience of the corporate sector, with stronger profitability supporting debt repayment capacity even as pockets of financial vulnerability remain.