The Reserve Bank of India (RBI) has released data for 4,278 listed non-financial private companies for FY2025-26. At the overall level, sales growth accelerated to 10.1%, returning to double-digit growth after remaining in single digits for the previous two years. The improvement was mainly driven by the manufacturing sector.
Manufacturing companies recorded 10.8% sales growth in FY26, up sharply from 6.0% in FY25. Growth was supported by automobiles, electrical machinery, food & beverages, and chemicals. However, petroleum companies continued to see a decline in sales. IT companies reported 7.9% sales growth, up from 7.1% a year earlier, while non-IT services companies maintained strong double-digit growth led by wholesale and retail trade.
Input cost pressures increased during the year. Raw material expenses for manufacturing companies rose 12.0%, and the raw material-to-sales ratio increased to 57.6% from 55.7% in FY25. Staff costs also increased, rising 10.7% in manufacturing, 6.1% in IT, and 9.0% in non-IT services companies.
Despite higher input costs, profitability improved in some sectors. Operating profit growth of manufacturing companies rose to 10.3% from 6.0% a year earlier. IT companies reported operating profit growth of 10.7%, while non-IT services companies saw profit growth slow to 7.1%.
Operating profit margins showed mixed trends. Manufacturing margins declined by 30 basis points (bps) to 13.9%, while non-IT services margins fell by 210 bps to 20.0%. In contrast, IT sector margins improved by 50 bps to 22.4%. The aggregate operating profit margin for all listed non-financial companies stood at 15.6% in FY26.
Corporate balance sheets also strengthened. Manufacturing companies’ interest coverage ratio (ICR) improved to 9.1 times from 7.9 times in FY25 due to higher profits and lower interest expenses. Non-IT services companies maintained an ICR of 2.2 times, while IT companies continued to report a strong and elevated interest coverage position.
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