RBI Data Shows Sales Growth Of Listed Firms Accelerated To 13.9% In Q4 FY26

New Delhi, Jun 17 (KNN) Sales growth of listed private non-financial companies accelerated to 13.9 percent year-on-year in the January-March quarter of FY2025-26, up from 10.1 percent in the preceding quarter, according tothe latest Reserve Bank of India (RBI) data.
 
The growth was supported by improved performance in the manufacturing and services sectors, reported Business Standard.
 
Manufacturing And Services Drive Revenue Growth
 
The analysis, based on the financial results of 3,266 listed non-government non-financial companies, showed that sales of 1,817 listed manufacturing firms grew 14.5 percent during the March quarter, compared with 11.4 percent growth in the previous quarter. 
 
The improvement was driven primarily by automobile, electrical machinery and non-ferrous metal companies.
 
Sales growth among information technology (IT) companies rose to 9.9 percent from 8.8 percent in the preceding quarter, while non-IT services firms recorded a robust 20.3 percent increase, supported by higher growth in the wholesale and retail trade segment.
 
Rising Input Costs Weigh On Manufacturing Margins
 
Despite stronger revenues, manufacturing companies continued to face pressure from rising input costs. Raw material expenses increased 18.3 percent year-on-year during the quarter, pushing the raw material-to-sales ratio up to 58.5 percent from 57.5 percent in the previous quarter.
 
Consequently, operating profit growth of manufacturing firms moderated to 9.4 percent in the March quarter from 11.8 percent in the preceding quarter. 
 
Services Firms Report Improved Profit Growth
 
In contrast, operating profit growth improved to 14.1 percent for IT companies and 6.5 percent for non-IT services firms.
 
Staff cost growth among manufacturing companies eased to 9.8 percent during the quarter. Among services firms, staff expenses increased at a faster pace for non-IT companies, while remaining broadly stable for IT firms.
 
The RBI data also showed an improvement in the financial position of manufacturing companies, with their interest coverage ratio rising to 9.5 in the March quarter from 9.0 in the preceding quarter.
 
(KNN Bureau)