RBI survey shows listed private companies post 10.1% sales growth in FY26, manufacturing leads recovery
Mumbai, June 24
Listed private non-financial companies recorded a double-digit sales growth of 10.1 per cent during 2025-26, marking an improvement after two years of single-digit growth, according to data released by the Reserve Bank of India on Wednesday.
The performance was primarily driven by a strong recovery in the manufacturing sector.
The RBI's assessment is based on the abridged financial results of 4,278 listed non-government non-financial (NGNF) companies. The central bank said the acceleration in overall sales growth was mainly led by substantial improvement in manufacturing sector performance.
RBI stated, "During 2025-26, at an aggregate level, listed private non-financial companies recorded a double-digit sales growth of 10.1 per cent, after recording single-digit growth in the previous two years."
According to the data, sales of manufacturing companies expanded by 10.8 per cent during 2025-26, compared with 6.0 per cent growth in the previous year.
The growth was largely supported by the automobile, electrical machinery, food and beverages, and chemical industries. However, the petroleum industry continued to witness contraction in sales during the year.
The RBI data also showed that sales growth of information technology (IT) companies improved to 7.9 per cent during 2025-26 from 7.1 per cent a year earlier. Non-IT services companies continued to record double-digit sales growth, led by healthy performance in the wholesale and retail trade industry.
On the expenditure side, raw material expenses of manufacturing companies increased by 12.0 per cent during 2025-26. The raw material-to-sales ratio rose to 57.6 per cent from 55.7 per cent in the previous year, indicating input cost pressures for manufacturers.
Staff costs increased by 10.7 per cent for manufacturing companies, 6.1 per cent for IT firms and 9.0 per cent for non-IT services companies during the year. However, the staff cost-to-sales ratio remained broadly stable for manufacturing companies and declined for services firms.
Despite higher input costs, manufacturing companies were able to improve profitability. Operating profit growth in the manufacturing sector rose to 10.3 per cent during 2025-26 from 6.0 per cent in the previous year.
Within the services sector, operating profit growth for non-IT services companies slowed to 7.1 per cent, while IT companies recorded an improvement to 10.7 per cent.
The RBI said operating profit margins for manufacturing and non-IT services companies declined by 30 basis points and 210 basis points, respectively, to 13.9 per cent and 20.0 per cent. In contrast, IT companies saw their operating profit margin improve by 50 basis points to 22.4 per cent.
The data further showed that manufacturing companies strengthened their debt-servicing position during the year. The interest coverage ratio improved to 9.1 in 2025-26 from 7.9 in the previous year, supported by higher gross profits and lower interest expenses.
— ANI
Reader Comments
Great to see manufacturing leading the recovery! 🇮🇳 But I'm slightly concerned about the IT sector—only 7.9% growth while other sectors are doing better. With AI and automation changing the game, Indian IT companies need to innovate faster. Still, overall, the RBI data gives me hope for the economy. 😊
One good piece of data doesn't tell the whole story. Yes, listed companies are showing growth, but what about the MSME sector? Small businesses are still struggling with high input costs and delayed payments. Also, the petroleum industry contraction is a worry—we're still too dependent on global oil prices. Need more balanced growth across all sectors.
Finally some good news for the economy! The interest coverage ratio improving to 9.1 is a strong indicator that companies are managing their debts well. But I wish the article had mentioned employment data—sales growth is meaningless if it doesn't translate into more jobs for our youth. Just my two paise.
As someone who tracks emerging markets, India's manufacturing recovery is impressive. The double-digit growth in auto and electrical machinery suggests both domestic consumption and export demand are strengthening. However, the raw material cost pressure is a red flag—if global commodity prices spike again, margins could get squeezed. Let's hope the government maintains policy stability to sustain this momentum.
Happy to see the numbers, but honestly, the common Indian isn't feeling this growth in their daily life. Petrol prices are still high, and food inflation is eating into household budgets. The
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