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Business News›News›Company›Corporate Trends›India Inc sales growth accelerates to 19.4 per cent in Q1 FY27, manufacturing leads recovery: RBI

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India Inc sales growth accelerates to 19.4 per cent in Q1 FY27, manufacturing leads recovery: RBI
Synopsis

Indian companies show stronger sales growth entering fiscal year twenty twenty seven. Manufacturing sales accelerated significantly, driven by key industries like automobiles. Operating profit growth also jumped across major sectors, improving margins. Companies faced elevated input costs, which impacted raw material expenses. However, improved pricing power helped absorb these higher costs effectively.

ANI

New Delhi: India's private corporate sector is entering the rest of FY27 on a stronger footing, with accelerating sales and operating profit growth pointing to improving business momentum.



However, elevated input costs and global supply-chain disruptions are likely to remain key factors to watch as companies seek to sustain margins, according to data released by the Reserve Bank of India (RBI) on Thursday.



Also read: S&P affirms India ratings at 'BBB/A-2' with 'stable' outlook

The RBI data, based on the abridged quarterly financial results of 3,247 listed non-government non-financial companies, showed aggregate sales growth accelerating to 19.4 per cent year-on-year in Q1 FY27 from 13.9 per cent in the previous quarter.



Manufacturing is emerging as a key driver of the recovery. Sales of 1,827 listed private manufacturing companies expanded 21.4 per cent year-on-year in the first quarter, up sharply from 14.5 per cent in the previous quarter. The acceleration was mainly driven by the automobile, petroleum and electrical machinery industries.




The IT sector also recorded stronger momentum, with sales growth rising to 14.8 per cent year-on-year from 9.9 per cent in the previous quarter. Non-IT services companies continued to post healthy double-digit growth of 19.7 per cent, although this was marginally lower than the 20.3 per cent recorded in the previous quarter, with wholesale and retail trade providing the main support.

The improvement in revenues came despite considerable cost pressures. Raw material expenses of manufacturing companies surged 27.5 per cent year-on-year during Q1 FY27 amid global supply-chain disruptions. Nevertheless, the raw material-to-sales ratio declined marginally to 58.1 per cent from 58.5 per cent in the previous quarter, indicating that stronger sales growth helped partly absorb the higher costs.

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India sales growthIndian companiesIndia's private sectorprivate corporate sectorReserve Bank of IndiaautomobilepetroleumIT sector sales growthOperating profit

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