Recoveries under India's Insolvency and Bankruptcy Code (IBC) saw a sharp decline in FY 2025-26. Admitted claims yielded only 23 percent, a significant drop from the previous year. This downturn is attributed to increasing delays in resolution processes. The number of corporate insolvency cases admitted also decreased.

Stress resolution shifted from paternalistic rehabilitation to market-driven resolution

ICRA raises concerns over halved recoveries under the IBC, highlighting declining resolution rates and prolonged timelines in FY26.