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Informist, Tuesday, Jun. 16, 2026

 

MUMBAI – For the March quarter, 3,266 listed non-government, non-financial companies reported 14% year-on-year rise in sales, according to a press release from the Reserve Bank of India. The revenue rose from a little over 10% in the December quarter, as per the release.

 

The sales of 1,817 listed private manufacturing companies rose 14.5% on year in the March quarter, as compared to 11.4% in the trailing quarter. This rise was mainly driven by earnings of automobile, electrical machinery, and non-ferrous metal companies, the central bank noted.

 

Information technology companies' revenue expanded almost 10% on year in the reporting quarter, higher than 8.8% in the trailing quarter. That of non-IT services companies improved by over 20% in Jan-Mar, mainly led by higher sales growth in the wholesale and retail trade industry, the RBI said.

 

Input costs of manufacturing companies rose more than 18% on year during the quarter, which accounted for 58.5% of the total sales. The ratio of raw material costs to sales in the December quarter was 57.5%, which shows that pressure from input cost was higher in the March quarter, the RBI said. 

 

The expense towards employees in manufacturing companies grew 9.8% on year in Jan-Mar. Within the services sector, the growth in staff costs for non-IT services companies was 8.9%, while it remained broadly similar for IT companies during the March quarter as compared to the previous quarter. The ratio of staff cost to sales for manufacturing and non-IT services companies moderated to 5.3% and 9.4%, respectively, in the March quarter. However, it increased marginally for IT companies in Jan-Mar from the previous quarter, the RBI said.

 

The operating profit of manufacturing companies grew 9.4% on year, lower than the 11.8% growth recorded in the trailing quarter. For IT and non-IT services companies, it improved 14.1% and 6.5%, respectively, during the March quarter. On a sequential basis, the operating profit margin of manufacturing companies remained stable while it moderated for services sector companies, the RBI said.

 

The interest coverage ratio, or the ratio of earnings before interest and tax to interest expenses, of manufacturing companies improved to 9.5 in the March quarter, up from 9 in the December quarter. This was primarily on the back of a higher sequential rise in gross profit than interest expense, the central bank said. Within the services sector, the interest coverage ratio of non-IT services companies was unchanged from the December quarter at 2.3 while that of IT firms remained at a high level, it said.  End

 

Reported by Simran Rede

Edited by Rajeev Pai

 

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