Automobile and Electrical Machinery Drive Q4 Sales Growth for Listed Firms

The Indian private manufacturing sector showcased robust momentum in the final quarter of FY2025-26, with sales growing by 14.5 per cent. Driven by strong performance in heavy industries, this surge highlights a resilient recovery across key manufacturing segments despite rising input costs.

Manufacturing Sector Sees Accelerated Sales Growth

According to the latest data released by the Reserve Bank of India (RBI), sales for 1,817 listed private manufacturing companies expanded by 14.5 per cent year-on-year (YoY) during the January-March 2025-26 quarter. This represents a significant acceleration compared to the 11.4 per cent growth recorded in the preceding quarter.

The expansion was not uniform across all sectors but was spearheaded by high-growth industries. Specifically, the automobile, electrical machinery, and non-ferrous metals sectors emerged as the primary engines of this growth. This trend suggests a strengthening of the industrial core and increased demand in capital goods and consumer durables.

The service sector also displayed a bifurcated growth pattern during the fourth quarter. Information Technology (IT) companies saw a steady improvement in sales growth, which rose to 9.9 per cent YoY, up from 8.8 per cent in the previous quarter.

In contrast, the non-IT services segment experienced a substantial surge, with sales growth jumping to 20.3 per cent. This massive expansion was primarily propelled by the wholesale and retail trade industry, indicating strong domestic consumption and efficient supply chain movements during the period.

Rising Input Costs and Margin Pressures

While sales figures remained impressive, the RBI report highlighted growing concerns regarding profitability and cost management. Amidst global uncertainties, manufacturing companies faced a significant spike in raw material expenses, which rose by 18.3 per cent YoY during Q4FY26.

Cette augmentation des coûts d'approvisionnement a exercé une pression sur les marges, comme en témoigne le ratio matières premières/ventes qui est passé à 58,5 %, contre 57,5 % au trimestre précédent. Alors que les marges opérationnelles des entreprises manufacturières sont restées stables d'un trimestre à l'autre, le secteur des services a connu une modération des marges au cours de la période de janvier à mars.

Sur le front de la main-d'œuvre, la croissance des coûts de personnel pour les entreprises manufacturières s'est modérée à 9,8 % en glissement annuel. Cependant, au sein du secteur des services, la croissance des coûts de personnel pour les entreprises non informatiques a progressé à un rythme beaucoup plus soutenu, tandis que les entreprises du secteur informatique ont maintenu des coûts liés aux employés relativement stables par rapport au trimestre précédent.

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