ICRA expects industry volumes to grow by 1-4% in FY2026 with a likely recovery in demand aided by GST rate cuts, notwithstanding a 2.7% YoY wholesale volume contraction in 5M FY2026. 

Credit profile of PV OEMs is expected to remain healthy, supported by improved profitability, low leverage, adequate liquidity and/or strong parentage.

Exhibit: Trend in domestic PV sales (in units)

Source: CMIE; ICRA Research