Document title: Performance of Private Corporate Business Sector during 2025-26
Issuing authority: Reserve Bank of India, Department of Communication
Reference number: Press Release: 2026-2027/531
Date: 24 June 2026
The Reserve Bank released a statistical bulletin covering the aggregate performance of 4,278 listed non‑government non‑financial (NGNF) companies for FY 2025‑26, with comparative tables for FY 2024‑25.
Sales Performance
The private non‑financial corporate sector recorded a 10.1% increase in total sales in 2025‑26, marking the first double‑digit growth after two years of single‑digit expansion. Manufacturing companies drove the acceleration, posting a 10.8% rise in sales compared with 6.0% in the prior year. The growth was led by automobiles, electrical machinery, food & beverages and chemicals. By contrast, the petroleum industry continued to contract its sales during the same period. IT companies improved their sales growth modestly to 7.9% from 7.1% a year earlier, while non‑IT services maintained double‑digit growth, buoyed by strong wholesale and retail trade activity.
Expenditure and Input Costs
Raw material expenses for manufacturing firms rose 12.0% in 2025‑26, pushing the raw‑material‑to‑sales ratio to 57.6%, up from 55.7% a year earlier, indicating heightened input‑cost pressure. Staff costs increased by 10.7% for manufacturing, 6.1% for IT and 9.0% for non‑IT services. The staff‑cost‑to‑sales ratio remained broadly stable for manufacturing companies but declined for services firms.
Profitability and Pricing Power
Despite higher input costs, operating profit for manufacturing companies grew to 10.3% in 2025‑26 from 6.0% in the previous year, reflecting improved pricing power. IT firms saw operating profit rise to 10.7%, whereas non‑IT services’ operating profit decelerated to 7.1%. Operating profit margins fell by 30 basis points for manufacturing, reaching 13.9%, and by 210 basis points for non‑IT services, reaching 20.0%. Conversely, IT companies improved their margin by 50 basis points to 22.4%.
Interest Coverage
Higher gross profit combined with lower interest expenses lifted the interest coverage ratio (ICR) for manufacturing firms to 9.1 in 2025‑26 from 7.9 the year before. The ICR for non‑IT services remained unchanged at 2.2, while IT firms continued to enjoy an elevated ICR (exact figure not disclosed).
The tables referenced (Tables 1A‑5A) provide sector‑wise, size‑wise and industry‑wise breakdowns of growth rates and select financial ratios. Explanatory notes and a glossary detailing the compilation methodology accompany the release.
Overall, the data indicate a resurgence in sales momentum, especially in manufacturing, alongside rising input costs that have been partially offset by stronger operating profits and improved debt‑servicing capacity for manufacturers. The IT sector shows modest sales acceleration and notable margin improvement, while non‑IT services experience margin compression despite solid sales growth.