- February 26, 2026
December Quarter Sees India Inc Revenue At 3-Year High: RBI
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RBI reports India Inc’s revenue grew 10.1% in Q3 FY26, led by manufacturing—especially autos, electrical machinery, and non-ferrous metals. Profits rose too.
Reserve Bank of India headquarters in Mumbai.
India Inc’s revenue expansion returned to double digits in the October-December 2025 quarter, according to data released by the Reserve Bank of India on Wednesday.
Manufacturing Drives Return To Double-Digit Growth
The central bank’s analysis of 3,188 listed private non-financial companies showed revenue growth rose to 10.1% year-on-year in the third quarter of FY26. This marks the first double-digit expansion after 11 consecutive quarters of single-digit growth.
The improvement was largely attributed to the manufacturing sector. Sales of 1,794 listed private manufacturing companies grew 11.4% year-on-year in Q3, up from 8.5% in the previous quarter.
According to the RBI, the acceleration was mainly driven by stronger sales in automobiles, electrical machinery and non-ferrous metals industries. The pick-up in manufacturing demand helped lift aggregate corporate performance during the quarter.
Services Sector Shows Mixed Trends
Within the services segment, information technology (IT) companies reported improved momentum. Sales growth in the IT sector increased to 8.8% in Q3 from 7.8% in the preceding quarter.
In contrast, non-IT services companies maintained stable growth, with sales rising 10.8% during the quarter, broadly unchanged from the previous three-month period.
On the profitability front, operating profit of manufacturing companies rose 11.8% year-on-year in Q3, supported by a moderate increase in other operating expenses.
Operating profit growth for IT companies improved to 11.1%, while non-IT services firms saw a moderation to 4%, the central bank said.
Net Profit Growth Recovers Sequentially
At the aggregate level, net profit growth increased to 5.2% in the October-December 2025 period, up from 1.5% in the previous quarter. However, it remained below the 11.8% growth recorded in the year-ago period.
From an expenditure perspective, raw material costs for manufacturing companies rose 12.7%, in line with higher sales growth. Staff costs also increased, rising 12.4% for manufacturing companies and 6.6% for IT firms.
The data signals a broad-based recovery in revenue growth across listed private non-financial companies, led by manufacturing, even as profit growth remains below last year’s levels.
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February 26, 2026, 07:17 IST
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