Mumbai, The debt-servicing capacity of listed private non-financial companies improved in the March quarter of 2025-26, with the interest coverage ratio rising to 6.5, even as the share of financially vulnerable firms edged up, according to the Reserve Bank of India's Financial Stability Report.
The RBI said the improvement in the ICR, which is a key measure of a company's ability to meet interest obligations from operating profits, was driven by a stronger sequential increase in gross profits relative to interest expenses.