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Reserve Bank of India or RBI stated in a latest update that during 2025-26, at aggregate level, listed private non-financial companies recorded a double-digit sales growth of 10.1 per cent, after recording single digit growth in previous two years. This acceleration was mainly led by substantial improvement in sales growth of manufacturing sector. Sales of manufacturing sector companies expanded by 10.8 per cent during 2025-26 as compared to 6.0 per cent growth in the previous year, mainly led by automobiles, electrical machinery, food & beverages and chemicals industries. Meanwhile, among the major industries, petroleum industry continued to record contraction in their sales during 2025-26. Sales growth of IT companies inched up further to 7.9 per cent during 2025-26 from 7.1 per cent in the previous year. Non-IT services companies continued to record double digit sales growth during 2025-26, led by healthy performance of wholesale & retail trade industry. Raw material expenses of manufacturing companies rose by 12.0 per cent during 2025-26; raw material to sales ratio increased to 57.6 per cent in 2025-26 from 55.7 per cent a year ago, pointing to input cost pressure. Staff cost rose by 10.7 per cent, 6.1 per cent and 9.0 per cent during 2025-26 for manufacturing, IT and non-IT services companies, respectively. Despite increase in the input costs, operating profit growth of manufacturing companies improved to 10.3 per cent during 2025-26 from 6.0 per cent in the previous year; within services sector, operating profit for the non-IT services companies decelerated to 7.1 per cent in 2025-26, while it improved to 10.7 per cent for IT companies. During 2025-26, operating profit margin declined by 30 basis points (bps) and 210 bps to 13.9 per cent and 20.0 per cent, respectively, for manufacturing and non-IT services companies, while it improved by 50 bps to 22.4 per cent for IT companies. Powered by Capital Market - Live News
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