Private non-financial companies sales growth accelerates near 20% on year in Q1FY27

Reserve Bank of India has released the data on performance of the private corporate business sector during the first quarter of 2026-27. At aggregate level, sales growth of listed private non-financial companies continued to accelerate to 19.4 per cent (y-o-y) during Q1:2026-27 from 13.9 per cent in the previous quarter. Sales of 1,827 listed private manufacturing companies expanded by 21.4 per cent (y-o-y) during Q1:2026-27, up from 14.5 per cent in the previous quarter. This acceleration was majorly driven by the automobiles, petroleum and electrical machinery industries.

Sales growth of Information Technology (IT) companies strengthened further and recorded a double-digit growth of 14.8 per cent (y-o-y) during Q1:2026-27 from 9.9 per cent in the previous quarter. Non-IT services companies continued to record a healthy double-digit growth of 19.7 per cent (20.3 per cent in the previous quarter), mainly driven by wholesale and retail trade industry.

With global supply chain disruptions, raw material expenses of manufacturing companies rose substantially by 27.5 per cent (y-o-y) during Q1:2026-27; however, raw material to sales ratio declined marginally to 58.1 per cent during Q1 from 58.5 per cent in the previous quarter.

Despite significant increase in input costs, operating profit growth of manufacturing companies improved significantly to 21.3 per cent (y-o-y) during Q1:2026-27 from 9.4 per cent in the previous quarter. Operating profit growth of IT and non-IT services companies also improved to 19.9 per cent and 12.7 per cent, respectively, during Q1:2026-27. On sequential basis, operating profit margin improved across all major sectors during Q1:2026-27.

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