Listed pvt non-financial firms see first double-digit sales growth in 3 yrs

RBI data shows listed private non-financial firms posted 10.1% growth in Q3FY26 - their first double-digit rise in nearly 3 yrs - driven by a rebound in manufacturing and stronger sectoral performance

Listed private non-financial companies posted a double-digit rise in sales for the first time in nearly three years, driven by a rebound in manufacturing activity, according to data released by the Reserve Bank of India (RBI) on Thursday.

 

The data, based on quarterly financial results of 3,188 listed non-government non-financial companies, showed aggregate sales growth of 10.1 per cent year-on-year (YoY) in Q3FY26. This follows eleven consecutive quarters of single-digit expansion.

 

The acceleration was led by the manufacturing sector. Sales of 1,794 listed private manufacturing companies grew 11.4 per cent YoY in Q3FY26, up from 8.5 per cent in the preceding quarter. The improvement was largely driven by stronger performance in automobiles, electrical machinery and non-ferrous metals. 

IT companies also recorded improved growth, with sales rising 8.8 per cent YoY in Q3FY26 compared with 7.8 per cent in Q2FY26. In contrast, sales growth of non-IT services firms remained broadly stable at 10.6 per cent during the quarter.

 

Operating profit of manufacturing companies rose 11.8 per cent YoY in Q3FY26, supported by a moderate increase in other operating expenses. IT companies reported an improvement in operating profit growth to 11.1 per cent, while non-IT services firms saw growth moderate to 4.0 per cent.

 

On the expenditure side, raw material expenses of manufacturing companies rose 12.7 per cent YoY in Q3FY26, in line with higher sales growth. The raw material-to-sales ratio edged up to 57.5 per cent in Q3 from 55.9 per cent in the previous quarter, indicating persistent input cost pressures.

 

Staff costs increased at a faster pace for manufacturing and IT companies, rising 12.4 per cent and 6.6 per cent, respectively, during the quarter. For non-IT services companies, staff cost growth moderated to 8.3 per cent from 8.9 per cent in Q2FY26.

 

The staff cost-to-sales ratio for manufacturing firms remained stable at 5.8 per cent in Q3FY26. However, the ratio moderated sequentially for both IT and non-IT services companies.