Indian retail sales will be stabilizing at a +3/+4% growth rate in 2016 and beyond, supported by strong demand growth, accommodating government policies.
Publicly listed retailers have deleveraged, pushing down the debt ratio from 86% in 2013 to 70% in 2016. At the same time, margins have recovered up from 4% in 2013 to 7% in 2016.
The food segment will benefit from a volume effect with the rise in consumer spending. Fashion’s profits reached 7.9% in 2016 while general retail enjoys only a modest 2% EBIT.