Document title: Performance of Private Corporate Business Sector during Q1:2026-27

Issuing authority: Reserve Bank of India, Department of Communication

Reference number: Press Release: 2026-2027/974

Date: August 27, 2026

Macro Outlook

The Reserve Bank released data covering 3,247 listed non‑government, non‑financial companies for the first quarter of FY 2026‑27. Aggregate sales of these private companies expanded 19.4% year‑on‑year (YoY), accelerating from a 13.9% YoY increase in the preceding quarter. Within manufacturing, sales of 1,827 listed firms rose 21.4% YoY, propelled primarily by the automobiles, petroleum and electrical machinery industries. Information Technology (IT) companies recorded a 14.8% YoY sales increase, up from 9.9% in the prior quarter, while non‑IT services firms posted a 19.7% YoY rise, slightly lower than the 20.3% growth seen earlier, driven mainly by wholesale and retail trade.

Expenditure patterns showed raw‑material costs for manufacturers surged 27.5% YoY, yet the raw‑material‑to‑sales ratio edged down marginally to 58.1% from 58.5% in the previous quarter. Staff costs increased across the board: manufacturing wages rose 12.4%, IT staff costs grew 7.6%, and non‑IT services staff costs climbed 11.2% YoY, all outpacing the prior quarter’s growth rates. Consequently, staff‑cost‑to‑sales ratios rose to 5.5% for manufacturing and 10.1% for non‑IT services, while the ratio for IT firms fell sequentially.

Despite higher input costs, operating profit growth accelerated markedly. Manufacturing operating profit expanded 21.3% YoY, up from 9.4% in the previous quarter. IT firms posted a 19.9% YoY increase in operating profit, and non‑IT services saw a 12.7% YoY rise. Sequentially, operating profit margins improved across all major sectors. The stronger profit growth translated into better debt‑servicing capacity: the interest coverage ratio (ICR) for manufacturers rose to 10.2, while non‑IT services ICR increased to 2.6. The ICR for IT firms remained at an elevated level, indicating robust earnings relative to interest expenses.

Overall, the data indicate a robust rebound in sales and profitability for the private corporate sector, with manufacturing leading the expansion, IT maintaining strong growth, and services showing healthy performance despite elevated input cost pressures. The improvement in operating margins and interest coverage ratios suggests enhanced financial stability for listed private non‑financial companies during the quarter.