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Crisil Predicts Rs 17.5 Lakh Crore Investment Growth In Renewables, Roads, And Real Estate

Samira Vishwas | June 9, 2025 10:24 PM CST

Crisil Ratings projects strong investment growth in India’s renewable energy, roads, and real estate sectors. The agency expects investments to reach Rs 17.5 lakh crore during the current and next fiscal years, rising from Rs 13.3 lakh crore over the previous two fiscals. “Over this fiscal and next, investments may rise at 15 per cent annually,” said Krishan Sitaraman, Chief Ratings Officer at Crisil. He added that despite challenges posed by new business dynamics, credit profiles of Crisil-rated developers and projects will stay resilient.

Sector Trends: Renewables Embrace Storage, Roads Focus On Monetisation

Renewable energy sees accelerated adoption of storage-linked capacities to manage power supply intermittency. Transitioning to hybrid or storage-backed systems allows reliable, round-the-clock power scheduling. The roads sector aims to boost growth through increased project awarding and sharper monetisation strategies. In real estate, developers realign offerings with a focus on premiumisation in residential properties and growth driven by global capability centres (GCCs) in commercial real estate.

Real Estate Shows Steady Revenue And Leasing Growth

Developers expect steady revenue growth of 10-12 per cent over the next two years, supported by ongoing demand for premium residential projects despite rationalising volume growth. Commercial real estate anticipates net leasing growth of 7-9 per cent in the same period. Crisil notes that India’s cost efficiency and growing sectors will push annual net leasing demand beyond 50 million square feet by fiscal 2027, driven by GCCs and domestic market expansion.

Though the sectors face evolving challenges, Crisil expects credit risk profiles to remain robust. Manish Gupta, Deputy Chief Ratings Officer, said, “Robust operating performance over past fiscals and strong cash flows have kept debt levels under control.” He highlighted healthy investor interest reflected in equity raises and asset monetisation, which enabled significant deleveraging.

Equity Capital Deployment Supports Resilience

Crisil reported that investors deployed Rs 2.1 lakh crore of equity capital in the renewables, roads, and real estate sectors over the past two fiscals. This robust investor participation has significantly strengthened the credit profiles of developers and ongoing projects. The steady inflow of equity capital has enabled substantial deleveraging of balance sheets, helping companies reduce their debt burden. As a result, developers and projects maintain strong financial health, which supports continued growth across these sectors. Despite facing evolving market challenges, this capital infusion plays a crucial role in sustaining sector resilience and encouraging ongoing investment and development.