Corporate earnings: RBI data shows listed firms’ sales growth slows to 5.5% in Q1, IT and manufacturing drag overall pace

Sales growth of listed private non-financial companies slowed to 5.5 per cent in the first quarter of FY26, down from 6.9 per cent in the same period last year, according to data released by the Reserve Bank of India (RBI) on Monday. The figures were compiled from the quarterly financial results of 3,079 listed private non-financial companies.“Sales of listed private non-financial companies rose by 5.5 per cent during Q1 2025-26 compared to 7.1 per cent growth in the previous quarter (6.9 per cent in Q1 2024-25),” the RBI said, PTI reported. The aggregate sales growth of 1,736 listed private manufacturing firms slipped further to 5.3 per cent in Q1 FY26 from 6.6 per cent in the previous quarter, largely weighed down by weak performance in the petroleum industry.IT sector growth also lost momentum, with sales rising by 6 per cent in Q1 compared to 8.6 per cent in the preceding quarter, reversing the upward trend that had persisted since Q1 of FY25.Non-IT services companies posted 7.5 per cent sales growth in Q1 FY26, slower than the double-digit expansion recorded over the past three quarters, primarily due to subdued performance in the transport and storage segment.On the expenses front, manufacturing firms’ raw material costs rose at a slower pace of 4.5 per cent compared to 8.3 per cent in the previous quarter, pulling down the raw material-to-sales ratio to 54.1 per cent from 55.2 per cent.Staff costs increased by 8.3 per cent for manufacturing firms, 5.8 per cent for IT, and 8.0 per cent for non-IT services during Q1 FY26 — all lower than the previous quarter’s growth.Operating profit growth moderated to 6.9 per cent for manufacturing and 11.3 per cent for non-IT services, though IT companies saw an improvement, with operating profit rising 5.4 per cent compared to the previous quarter.