Branded hotels to log double-digit growth this fiscal and next
Branded hotels1 are likely to see double-digit revenue growth of 13-14% this fiscal and 11-12% in the next (see chart in annexure), fuelled by demand outpacing supply. While domestic leisure and business travel will continue to be the primary demand drivers, growing traction in MICE (meetings, incentives, conventions and exhibitions) segment and pickup in foreign tourist arrivals will provide an additional fillip. To be sure, this comes on the back of a strong 17% growth recorded last fiscal.
Operating losses of e-pharmacies seen falling below 10% next fiscal
India’s online pharmacy sector is on course to reduce operating losses1 to below 10% next fiscal from over 30% in fiscal 2023, by sharpening focus on high-margin product segments and operational efficiencies.
India’s data centre capacity to more than double by fiscal 2027
The Indian data centre industry’s capacity1 is set to more than double to 2-2.3 GW by fiscal 2027, led by increasing digitalisation of the economy as enterprises increase their investments in cloud storage and consumer demand for data surges. Further, rising penetration of Generative Artificial Intelligence (GenAI) will drive the demand over the medium term.
Wood cost to tear 400-500 bps off writing and printing paper margin
Operating margin of writing and printing (W&P) paper manufacturers is set to contract 400-500 basis points (bps) to 15-16% this fiscal — following a similar correction last fiscal from the unusually high level of fiscal 2023 — driven by costlier hardwood and softwood (key inputs to make pulp, the primary raw material) and softening realisations.
Road InvIT AUM to rev up 68% to Rs 3.2 lakh crore by March 2026
Assets under management (AUM) of infrastructure investment trusts (InvITs) in the road sector are poised to surge ~68% to ~Rs 3.2 lakh crore by March 2026, from ~Rs 1.9 lakh crore as of September 2024. The growth will be fueled by the expansion of existing InvITs’ asset pool and the emergence of new InvITs. The AUM growth will be accompanied by diversification in terms of geography and concession type, which will help build resilience. This, along with leverage levels being under control will keep credit profiles of road InvITs strong.
Ramkumar Uppara
Director - Corporate Communication
+91 9820177907
ramkumar.uppara@crisil.com