Capital goods makers likely to see revenue rise of 9-11%

Chandigarh, June 24

Capital goods makers are likely to see revenue rise of 9-11% in fiscal 2025, led by continued significant outlays towards railways (including metros), defence, conventional and renewable sectors.

This compares with an expected 13% growth in fiscal 2024, according to an analysis by Crisil Ratings.

A CRISIL Ratings analysis of 87 companies with an aggregate revenue of around Rs 3 lakh crore in fiscal 2024, constituting 70% of the capital goods sector, indicates as much. In fiscal 2024, spending by the government on railways grew a strong 28% on-year, and on defence by 10%. Conventional sectors increased capex spend by 6-8% and investments in renewable capacity increased by a healthy 18%.

This continued momentum in capex is also evident from the order books3 of capital goods makers that has seen a strong growth of over 15% in fiscal 2024, translating into 2.5-3.0 times the revenue.