Softening retail credit weighs on India’s credit health in Q4 FY25
The CMI for demand, reflecting consumers applying for new credit, continued to show a downward trend, falling to 92 in March 2025, from 95 in March 2024.
The CMI for demand, reflecting consumers applying for new credit, continued to show a downward trend, falling to 92 in March 2025, from 95 in March 2024.
The report urges investors to re-evaluate traditional portfolio models like the 60/40 split in the wake of rising global uncertainty, inflation volatility, and changing economic leadership.
The speed of growth was far from uniform, largely tilted towards North America, with the Americas overall accounting for the majority of the increase.
The investment demand remained the key driving factor during 4QFY25 as it recorded a robust growth of 9.4% YoY.
The credit profiles of dealers will remain stable after moderating last fiscal from the healthy levels seen after the pandemic.
We may see some short-term sluggishness in the Indian realty market, but there is no question of an outright plunge.
Profitability of these NBFCs has been impacted due to the growth slowdown, margin compression and rise in credit cost.
The shift toward moderation became particularly evident from Q3 2024 onwards. Between Q4 2024 and Q1 2025, most cities either held steady or posted low single-digit gains.
With this, the total homes delivered in the last three financial years stood at over 10 lakh units.
Ind-Ra expects residential real estate sector’s growth momentum to taper down in FY26, due to the high base of FY25 and elevated price levels.