Listed Private Firms’ Sales Jump 10.1% In FY26 As Manufacturing Growth Hits 10.8%: RBI

Listed private companies found their way back to double-digit sales growth in FY26. Factories led the recovery, though higher material bills cut into the gains.

Key Highlights
 

• In FY26, sales from listed private non-financial companies recorded an annual increase of 10.1%. Growth from Manufacturing sales reached 10.8% from 6% recorded in FY25.
   
• The increase in the price of raw materials increased by 12% resulting in the increase of the materials cost ratio from 55.7% to 57.6%.

Sales of listed private non-financial companies in FY2025-26 increased by 10.1%, ending two years of single-digit growth. Manufacturing showed the strongest growth showing 10.8% sales growth compared to the previous year's 6%, as reported by Moneycontrol.

Increased orders from suppliers of auto parts, transport firms, dealers, and factory contractors can be expected. However, the profit margin will come under pressure since the cost of materials will increase faster than sales.

FY26 Corporate Performance

Automobiles, electrical machinery, chemicals, and food and beverage companies drove much of the manufacturing growth. Petroleum firms remained weak and recorded another decline in sales, as reported by Business Standard.

Non-IT service companies also kept sales growth in double digits. Wholesale and retail businesses were among the stronger contributors. IT companies posted 7.9% growth, only slightly above the previous year’s 7.1%.

How Will Higher Company Sales Reach Indian Households?

A stronger order book usually travels beyond the listed company itself. An automobile manufacturer buys tyres, cables, seats and packaging. Food companies need warehouses and trucks. Electrical equipment makers depend on metals, dealers and installation teams.

The March quarter was particularly strong.

Staff costs rose 10.7% in manufacturing, 6.1% in IT, and 9% in non-IT services. That may support wages and hiring. Still, companies facing higher input bills may stay cautious while adding permanent workers.

What Do The Profit Numbers Reveal?

The dataset covered 3,266 listed non-government non-financial companies, including 1,817 manufacturing firms, according to Business Standard⁠. Manufacturing operating-profit growth slowed from 11.8% in Q3FY26 to 9.4% in Q4FY26, even as factory sales improved.

Raw-material expenses rose 18.3% in Q4FY26, according to Business Standard⁠, faster than the 14.5% increase in manufacturing sales reported by Upstox⁠. The interest coverage ratio improved from 9.0 to 9.5, according to Business Standard, indicating that the wider group remained capable of meeting interest payments.

According to LoansJagat, smaller manufacturers and suppliers may still face cash-flow gaps even when orders rise. A component maker may pay for steel, wages and freight weeks before a large buyer clears the invoice. Faster collections, shorter stock cycles and planned working-capital limits can reduce this pressure. Businesses needing short-term funds can compare a working capital loan through LoansJagat⁠ instead of relying on expensive informal borrowing.

Conclusion

FY26 brought a firmer sales recovery across factories and service companies. Higher material costs, however, could decide how much of that growth reaches profits, jobs and household spending.

FAQs

How Much Did Listed Private Company Sales Grow In FY26?

Aggregate sales increased 10.1% during FY26.

Why Could Profit Margins Stay Under Pressure?

Raw-material expenses rose 12%, faster than manufacturing sales.

How Strong Was The March Quarter?

For the March quarter, aggregate sales surged by 13.9%. Non-IT services sales surged even more dramatically, growing by 20.3%.

What Does Strong Manufacturing Growth Mean For Indian Stock Market Investors?

Strong growth in manufacturing typically translates to strong sales for the firms in the sector, and greater earnings. Investors generally stand to benefit from strong growth through the corresponding appreciation in the firm’s stock.

Why Do Companies Raise Prices When Costs of Raw Materials Go Up?

When companies are faced with higher costs of production due to more expensive raw materials, they increase the price of their products to minimize the impact on margins of the higher costs. If the increase in costs is excessive, then demand for the products may fall even though the price is increasing.