RBI: Sales of Listed Private Non-Financial Companies Grow at a Slower Pace of 5.5% in Q1 FY26

The Reserve Bank of India has released data revealing a deceleration in the sales growth of listed private non-financial companies (NFCs) during Q1 of FY26. The overall rise of 5.5% marks a slowdown from the previous year's 6.9%, signalling cooling momentum across key sectors.

Sales and Sector-Wise Trends in Q1 FY26

According to RBI data from Q1 FY26, compiled from 3,079 listed private NFCs, sales increased by 5.5% year-on-year, compared with 7.1% in the previous quarter and 6.9% in the same period last year. Manufacturing firms witnessed muted growth at 5.3%, mainly due to weaker petroleum industry output. 

IT companies posted a 6% rise in sales, reversing the upward trend seen since Q1 FY25. Non-IT services fared slightly better at 7.5%, but still fell from their previous double-digit performances, affected by lower growth in transport and storage sub-sectors.

Moderation in Input Costs and Operating Profits

Raw material expenses for manufacturing firms rose by 4.5%, significantly below the 8.3% recorded in the prior quarter. This moderation led to a lower raw material-to-sales ratio at 54.1%, down from 55.2% in Q4 FY25. Staff-related costs also increased more slowly, with manufacturing, IT and non-IT services recording growth of 8.3%, 5.8% and 8.0% respectively, all lower compared to their Q4 growth figures.

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Shifts in Profitability Across Sectors

Operating profits saw divergent performances across sectors. Manufacturing companies reported a slower 6.9% rise, while non-IT services grew 11.3%, also a slowdown compared to earlier quarters. Interestingly, IT companies defied the broader weakening trend, with operating profit growth improving to 5.4% from the previous quarter’s figures, indicating potential operational efficiency gains or better cost management.

Conclusion

The RBI's Q1 FY26 data indicates that listed private non-financial companies are facing a broad moderation in revenue growth. While sectors like IT managed slight improvements in profit performance, others, such as manufacturing and non-IT services, reflected overall cooling demand. Input cost pressures and operational expenditures have also settled slightly, giving a balanced but cautious outlook.

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