FMCG, healthcare in line for strong show in FY27: Brickworks

India’s consumer goods and healthcare services are expected to be among the strongest-performing sectors this fiscal year, supported by tax cuts, rising consumer demand, strong interest and debt coverage ratios, and growth in medical tourism, according to Brickwork Ratings.

“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/III cities, and premiumisation,” the rating agency said.

“Meanwhile, tailwinds for healthcare services include strong interest and debt coverage ratios, a medical tourism market of an estimated $13 billion, and expansion of the Ayushman Bharat programme to senior citizens over the age of 70.”

Brickwork reviewed 25 sectors, assigning a stable outlook to 22. Power distribution was the only sector with a negative outlook.

The agency said the power distribution segment remains weak due to elevated and unsustainable debt levels, reflected in weak credit profiles and persistent cash gaps from low or delayed tariff increases.

“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 at Brickwork Ratings.
Brickwork expects a stable credit outlook across 22 of the 25 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.