Auto and Electrical Machinery Drive Surge in Private Manufacturing Sales

India's listed private manufacturing sector witnessed a robust performance in the final quarter of FY2025-26, characterized by significant sales expansion across several core industries. According to the latest data from the Reserve Bank of India (RBI), sectoral growth in automobiles and electrical machinery acted as primary catalysts for this momentum.

Manufacturing Sector Records Double-Digit Growth

The private corporate business sector showed remarkable resilience in the January-March 2025-26 period. Aggregate sales for listed private non-financial companies grew by 13.9 per cent, a notable jump from the 10.1 per cent growth recorded in the preceding quarter.

A more specific look at the manufacturing segment reveals even stronger momentum. Sales for 1,817 listed private manufacturing companies expanded by 14.5 per cent year-on-year (y-o-y), compared to 11.4 per cent in the previous quarter. This acceleration was primarily propelled by high demand in three critical sectors: automobiles, electrical machinery, and non-ferrous metals.

IT and Services Sector Performance

While manufacturing led the charge, the services sector also showed divergent but positive trends. The Information Technology (IT) sector saw a steady improvement, with sales growth rising to 9.9 per cent y-o-y, up from 8.8 per cent in the previous quarter.

The non-IT services segment demonstrated even more aggressive expansion, with sales growth improving substantially to 20.3 per cent. This surge was largely fueled by the wholesale and retail trade industry, indicating strong domestic consumption and distribution activity.

Rising Input Costs and Margin Pressures

Despite the impressive top-line growth, the RBI data highlights growing challenges regarding profitability and cost management. Global uncertainties have exerted pressure on the supply chain, causing raw material expenses for manufacturing companies to rise by 18.3 per cent y-o-y during Q4FY26.

This spike in expenses is reflected in the raw material-to-sales ratio, which climbed to 58.5 per cent from 57.5 per cent in the previous quarter. This increase suggests that manufacturing firms are facing significant input cost pressures. On the labor front, staff cost growth for manufacturing companies moderated to 9.8 per cent y-o-y.

Enquanto as empresas de manufatura conseguiram manter suas margens de lucro operacional estáveis em uma base sequencial, o setor de serviços enfrentou uma leve moderação nas margens durante o período de janeiro a março.

Principais Conclusões