India’s listed manufacturing companies reported a 6% sales increase in FY25, according to data released by the Reserve Bank of India (RBI) on June 26. The growth was led by key sectors such as automobiles, electrical machinery, pharmaceuticals, and food & beverages, while petroleum and iron & steel saw contractions. The data reflects strong corporate performance amid global headwinds, despite margin pressures from rising input and staff costs.
The Reserve Bank of India (RBI), India’s central banking institution headquartered in Mumbai, has reported that sales of listed manufacturing companies in the country rose by 6% in the financial year 2024–25, up from 3.5% growth recorded in the previous year.
According to RBI’s data released on June 26, compiled from the abridged financial results of 3,902 listed non-government non-financial (NGNF) companies, the increase in sales was driven by strong performances in the automobile, electrical machinery, food & beverages, and pharmaceutical sectors.
However, the report also highlighted a decline in sales in the petroleum and iron & steel sectors, which weighed down overall industrial growth.
The sales growth of all listed private non-financial companies rose to 7.2% in FY25, up from 4.7% the year before. IT companies also experienced a moderate rebound, with sales rising 7.1% compared to 5.5% in FY24.
The services sector showed a notable uptrend as non-IT services companies posted double-digit growth, led by telecommunications, transport & storage, and wholesale & retail trade segments.
In parallel with sales growth, input costs for manufacturing companies also increased. Raw material expenses rose by 6.6%, pushing the raw material to sales ratio to 55.7%, up from 54.2% a year earlier—highlighting ongoing cost pressures.
Staff costs rose across the board—10% for manufacturing, 4.4% for IT, and 12% for non-IT services companies. While the staff cost-to-sales ratio remained steady for manufacturing, it declined slightly for the services segment.
Despite improved top-line performance, operating profit growth of manufacturing companies moderated to 6%, significantly lower than the 12.4% growth seen in FY24. Within the services sector, non-IT companies saw profit growth slow to 15.9%, while IT firms registered a slight increase to 6.1%.
Operating profit margins also dipped:
- Manufacturing: 14.2% (down 20 basis points)
- IT: 21.9% (down 80 basis points)
- Non-IT services: 22.1% (down 30 basis points)
The RBI’s report reflects the mixed impact of global and domestic economic dynamics on India’s private corporate sector, with resilient sales growth amid input cost challenges.
