Auto and Electrical Machinery Drive Strong Q4 Sales for Listed Manufacturers

India's listed private manufacturing sector showed remarkable resilience in the final quarter of FY2025-26, with sales growth accelerating significantly. Driven by robust demand in core industrial sectors, the latest data from the Reserve Bank of India (RBI) highlights a strengthening corporate business landscape.

Manufacturing Sector Shows Strong Momentum

According to the latest RBI data, which analyzed the financial performance of 3,266 listed non-government non-financial companies, the manufacturing segment has emerged as a primary growth engine. Sales for 1,817 listed private manufacturing companies expanded by 14.5% year-on-year (y-o-y) during the January-March 2025-26 quarter. This represents a significant jump from the 11.4% growth recorded in the previous quarter.

This acceleration was largely propelled by high performance in specific high-growth industries, namely automobiles, electrical machinery, and non-ferrous metals. The momentum in these sectors suggests a healthy demand cycle within India's industrial core.

The services sector also contributed to the overall positive sentiment, though the drivers differed across sub-sectors. Information Technology (IT) companies saw their sales growth improve to 9.9% y-o-y in Q4, up from 8.8% in the preceding quarter.

In a more striking development, non-IT services companies witnessed a substantial expansion in sales growth, reaching 20.3%. This surge was primarily fueled by the wholesale and retail trade industry, indicating robust domestic consumption and efficient supply chain movements. On an aggregate level, listed private non-financial companies maintained a double-digit sales growth of 13.9%, an improvement over the 10.1% growth seen in the previous quarter.

Rising Input Costs and Margin Pressures

Despite the topline growth, the RBI report highlights emerging challenges regarding profitability and cost management. Global uncertainties have exerted upward pressure on production expenses, with raw material costs for manufacturing companies rising by 18.3% y-o-y during Q4FY26.

Questo picco delle spese si riflette nel rapporto tra materie prime e vendite, salito al 58,5% nel trimestre gennaio-marzo, rispetto al 57,5% del trimestre precedente. Questo trend indica un aumento delle pressioni sui costi di produzione che le aziende devono gestire. Mentre i margini operativi per le aziende manifatturiere sono rimasti stabili su base sequenziale, i margini per le aziende del settore dei servizi hanno subito una moderazione durante lo stesso periodo.

Costi del lavoro e dinamiche operative

I dati forniscono inoltre informazioni sulla spesa per il personale. La crescita dei costi del personale per le aziende manifatturiere si è moderata al 9,8% su base annua nel Q4FY26 rispetto al trimestre precedente. Tuttavia, all'interno del settore dei servizi, è emerso un modello differente: la crescita dei costi del personale per le aziende di servizi non IT è aumentata a un ritmo più elevato, mentre i costi per le aziende IT sono rimasti relativamente stabili rispetto al trimestre precedente.

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