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Informist, Wednesday, Jun. 24, 2026

 

MUMBAI – Aggregate sales of listed private non-financial companies rose 10.1% in 2025-26 (Apr-Mar), following a single-digit growth in the previous two years, according to a study by the Reserve Bank of India based on the results of 4,278 companies.

 

The rise in revenue was mainly on the back of a substantial improvement in sales growth of the manufacturing sector, the RBI said in a release.

 

The sales of listed private manufacturing companies rose 10.8% in 2025-26, compared with 6% in the previous year. The rise was mainly driven by earnings of automobile, electrical machinery, food and beverages, and chemical companies, the central bank said. On the other hand, the petroleum industry continued to record a contraction in its sales in FY26. 

 

Revenue of information technology companies expanded almost 8% in FY26, higher than 7.1% in the previous year, while revenue of non-IT services companies rose in double digits during the year, mainly led by healthy sales growth in the wholesale and retail trade industry, the RBI said.

 

Input costs for manufacturing companies rose 12% in FY26, accounting for 57.6% of the total sales. The ratio of raw material costs to sales in FY25 was 55.7%, reflecting higher input cost pressure in FY26, the RBI said. 

 

Employee expenses in manufacturing companies grew 10.7% in FY26. Within the services sector, growth in staff costs for non-IT services companies was 9%, compared with 6.1% for IT companies during the year. The ratio of staff costs to sales for manufacturing companies was broadly stable in FY26, while it declined for services sector companies, the RBI said.

 

The operating profit of manufacturing companies grew 10.3% in FY26, higher than the 6% growth recorded in the trailing year. For IT and non-IT services companies, it rose 10.7% and declined 7.1%, respectively, during the year. The operating profit margin of manufacturing companies contracted 30 basis points on year to 13.9% and non-IT services companies fell 210 bps to 20%, the RBI said. However, it improved by 50 bps to 22.4% for IT companies.

 

The interest coverage ratio, or the ratio of earnings before interest and tax to interest expenses, of manufacturing companies improved to 9.1 in FY26 from 7.9 in the previous year. This was primarily due to a larger increase in gross profit than in interest expense, the central bank said. Within the services sector, the interest coverage ratio of non-IT services companies was unchanged from a year ago at 2.2 in FY26, while that of IT firms remained high, it said.  End

 

Reported by Simran Rede

Edited by Saji George Titus

 

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