Sales of 1,817 listed manufacturers jump 14.5% in Q4 FY26; autos, electrical machinery and metals lead growth: RBI data

Sales growth among India's listed private manufacturing companies accelerated in the fourth quarter of FY26, driven by strong performance in automobiles, electrical machinery and non-ferrous metals, according to data released by the Reserve Bank of India (RBI) on Tuesday.

The RBI's analysis of 3,266 listed non-government non-financial companies showed that sales of 1,817 listed private manufacturing firms expanded 14.5% year-on-year during the January-March quarter of FY26, up from 11.4% growth recorded in the preceding quarter. At the aggregate level, listed private non-financial companies reported a 13.9% increase in sales during the quarter, compared with 10.1% growth in the October-December period.

Manufacturing momentum strengthens

"Sales of 1,817 listed private manufacturing companies expanded by 14.5% (y-o-y) during Q4:2025-26, as compared to 11.4% in the previous quarter," the RBI said.

According to the central bank, the improvement was largely supported by higher revenues in the automobile, electrical machinery and non-ferrous metals industries, sectors that have benefited from sustained domestic demand and industrial activity.

The data indicates that manufacturing companies continued to contribute significantly to overall corporate sector growth despite a challenging global environment marked by supply-chain disruptions and commodity price volatility.

Services sector growth remains robust

The services sector also delivered a strong performance during the quarter. Sales growth of information technology companies improved to 9.9% year-on-year in Q4 FY26 from 8.8% in the previous quarter.

Non-IT services companies recorded an even stronger expansion, with sales growth rising to 20.3% from the previous quarter. The RBI attributed the sharp increase primarily to the wholesale and retail trade industry, which continued to benefit from healthy consumer spending and business activity.

The broad-based improvement across manufacturing and services underscores the resilience of India's listed corporate sector despite persistent external uncertainties.

Input costs rise amid global uncertainty

Even as revenues expanded, companies faced mounting cost pressures. The RBI noted that raw material expenses of manufacturing firms increased 18.3% year-on-year during the quarter, reflecting the impact of global uncertainties on input costs.

The raw material-to-sales ratio rose to 58.5% in Q4 FY26 from 57.5% in the previous quarter, signalling higher input cost intensity. Staff cost growth for manufacturing companies moderated to 9.8% year-on-year, while employee expenses rose at a faster pace among non-IT services firms.

On a sequential basis, operating profit margins of manufacturing companies remained broadly stable, whereas margins in the services sector moderated during the January-March quarter, indicating that rising costs continued to weigh on profitability. (With inputs from PTI)