Robust Revenue Growth Fuels Manufacturing and IT Sectors

The Reserve Bank reported a significant revenue growth for private listed non-financial companies in the third quarter of the fiscal year 2026, hitting 10.1%. This marks a departure from the single-digit growth seen in the last 11 quarters, attributed largely to manufacturing sector successes.

Data from 3,188 companies showed that manufacturing sales rose by 11.4%, significantly higher than the previous quarter's 8.5%. Notably, industries such as automobiles, electrical machinery, and non-ferrous metals contributed to this uptick. The IT sector's revenue growth also improved to 8.8%, while non-IT services maintained stable growth.

The Reserve Bank highlighted a rise in operating profits of manufacturing companies by 11.8%, citing moderate increases in operating expenses as a factor. IT companies also saw a profit boost, whereas non-IT services experienced a slowdown. Net profits grew 5.2% from the previous quarter but remained lower than the same period last year.