Manufacturing Revival Boosts Double-Digit Sales in 2025-26: RBI Report

Private non-financial companies in India achieved a sales growth of 10.1% in 2025-26, the highest in three years, spurred by a strong manufacturing sector rebound. The Reserve Bank of India's data highlights significant contributions from industries like automobiles and chemicals, despite input cost pressures and challenges in the petroleum sector.

In a promising development for India's economy, private non-financial companies posted a substantial sales growth of 10.1% during the fiscal year 2025-26, as revealed by Reserve Bank of India data. This marks a rebound from two years of single-digit expansions, primarily driven by a robust recovery in the manufacturing sector.

The RBI compiled these findings from the financial results of 4,278 listed non-government non-financial companies. Leading the charge in sales growth was the manufacturing sector, which expanded by 10.8%, compared to 6.0% in the previous year. Key performers included the automobile, electrical machinery, food, beverages, and chemical industries, although the petroleum sector faced declining sales.

Information technology companies saw an improved sales growth rate of 7.9% from the previous year's 7.1%. While non-IT services demonstrated resilient double-digit growth due to strong performances in wholesale and retail trade. Despite rising raw material expenses and other costs, profitability improved within manufacturing, pushed by an operating profit growth of 10.3% compared to 6.0% previously.