ICRA continues with a Positive outlook for the capital goods industry, owing to expectations of near-term median OPBDITA growth of over 15% for the sample set of companies, driven by robust capex across key end-user industries.

• Strong Capex Visibility: Government capex allocation in the budget for FY2027 has risen to Rs 12.2 lakh crore from Rs 11.2 lakh crore in FY2026 RE, strengthening multi-year visibility for investments across power, railways and infrastructure anchoring the demand for capital goods. In the private sector significant capacity expansion is planned in oil refineries, data centers and defense industries providing support to capital goods sector
• Order Inflows at Multi-Year Highs: Order inflows grew 32% YoY in 9M FY2026, with the order book rising to Rs 2.20 lakh crore for ICRA set of 16 companies, providing strong revenue visibility. Accordingly Order Book/Operating Income ratio strengthened to 1.43 times as at H1 FY2026 end reflecting a robust execution pipeline.