Infrastructure firms expect sequential improvement in turnover and overall business situation during H2 FY26

Reserve Bank of India (RBI) released the results of 45th round of its quarterly Services and Infrastructure Outlook Survey (SIOS) yesterday. Infrastructure companies remained positive on overall business situation, employment as well as their turnover during Q1:2025-26. Respondents assessed easing of cost pressures; while sentiments on selling price growth and profit margin moderated. For Q2:2025-26, infrastructure firms remain highly optimistic on overall business situation and turnover. Cost pressures are likely to remain high, leading to tempered expectations for increase in selling prices and profit margins. Infrastructure firms expect sequential improvement in turnover and overall business situation during H2:2025-26. Input cost pressures are likely to persist in near term; with concomitant rise in selling prices.

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