Rupee freefall starts cutting corporate profits again and hedges aren’t enough anymore

Published on 24 April 2026

Even heavily hedged firms still took INR940 crore losses

The rupee’s slide is moving from markets into corporate balance sheets, with overseas loan exposure turning into large forex losses. Even firms with hedges are registering painful hits, including PFC’s INR940 crore loss in H1 FY26. Dollar, euro, and yen borrowings are raising fresh risk, and while it’s not a 2008-style crisis yet, stress is building quietly.

Rupee depreciation is now eroding corporate profitability through forex losses
Overseas loans in dollars and other currencies are driving the damage
Even hedged firms like PFC reported INR940 crore loss in H1 FY26
A full-blown crisis may not be here, but warning signs are rising

#india economy #corporate loans #rupee #hedging #forex losses

Read the full story at The Economic Times

This summarization was done by Beige for a story published on The Economic Times

Rupee freefall starts cutting corporate profits again and hedges aren’t enough anymore

The full experience is on mobile.