Indian Companies Raise ₹5.47 Trillion via Bonds in H1FY26

Indian corporates collectively raised over ₹5.47 trillion through the domestic bond market in the first half of FY2025-26 (H1FY26), according to the news reports. The performance underscores resilient investor interest despite yield fluctuations driven by both global and domestic monetary conditions.

Quarterly Trends and Market Dynamics

Fundraising remained robust in the first quarter (Q1FY26), with companies raising around ₹3.44 trillion, supported by relatively lower yields and strong institutional demand. However, activity moderated in the second quarter (Q2FY26), when only ₹2.03 trillion was mobilised, as rising yields and global economic uncertainties tempered investor sentiment.

Analysts attributed the Q2 slowdown to hardened yields, influenced by tighter liquidity conditions and expectations of a prolonged higher-rate environment.

Outlook for the Second Half

As per the news reports, a revival in bond issuances is expected in Q3FY26, as banks, largely absent in the first half, re-enter the market to raise funds amid sustained credit growth. Investor interest is expected to remain strong, particularly for short- and medium-term maturities, potentially driving a more active primary market in the latter half of the fiscal year.

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Conclusion

Despite temporary headwinds in Q2, the ₹5.47 trillion mobilisation in H1FY26 signals continued confidence in India’s corporate debt market. With banks expected to boost participation and yields likely to stabilise, the outlook for the second half remains optimistic.
 

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