Key messages

• The micro, small and medium enterprises (MSME) sector’s revenue growth will plunge into deep red this fiscal because of the Covid-19 pandemic
  
• Earnings before interest, taxes, depreciation and amortisation (Ebitda) margins will decline despite lower commodity prices
  
• Higher stress in financials visible in micro units compared with small and medium firms
  
• Consumer discretionary, construction and export-linked MSMEs will be the most impacted
  
• Credit growth to MSMEs, an under-penetrated sector, will decelerate this fiscal
  
• Asset quality pressures to rise despite moratorium, because of slack demand
  
• Entrepreneurs from key sectors see varied pace of revival – those most affected do not expect are bound before next fiscal, while a few are optimistic about the upcoming festive season