Archive · 27 Aug 2026
Manufacturing Profit Growth Surges in Q1, RBI Data Shows
The Reserve Bank of India studied the financial results of 3,247 listed companies.
It found that manufacturing companies earned operating profits much faster in the April-to-June quarter of FY27.
Their profit growth rose to 21.3% from 9.4% in the previous quarter.
Companies in information technology and other services also recorded stronger profit growth.
Overall sales growth increased to 19.4%.
Manufacturing sales grew especially quickly because of automobiles, petroleum, and electrical machinery.
Companies spent more on raw materials because of global supply-chain problems.
Even so, raw-material costs made up a slightly smaller share of manufacturing sales.
Profit margins improved in all three major sectors covered by the analysis.
Manufacturing companies’ operating profit growth rose to 21.3% year-on-year in Q1 FY27 from 9.4% in Q4 FY26.
Operating profit margins improved across manufacturing, IT, and non-IT services companies during the quarter.
Aggregate sales growth of listed private non-financial companies accelerated to 19.4% from 13.9%.
Manufacturing sales grew 21.4%, led mainly by automobiles, petroleum, and electrical machinery.
Manufacturing raw-material expenses increased 27.5%, while the raw-material-to-sales ratio declined marginally to 58.1%.
- Who
- The Reserve Bank of India and 3,247 listed non-government non-financial companies.
- What
- RBI data showed stronger operating-profit and sales growth among manufacturing, IT, and non-IT services companies in Q1 FY27.
- When
- Q1 FY27, covering April-June 2026; the analysis was published on August 27, 2026.
- Why
- Sales growth strengthened across sectors, although manufacturing companies also faced substantially higher raw-material costs.
- Data source
- Reserve Bank of India analysis of abridged quarterly financial results.
- Companies covered
- 3,247 listed non-government non-financial companies.
- Manufacturing profit growth
- 21.3% year-on-year in Q1 FY27, compared with 9.4% in Q4 FY26.
- Overall sales growth
- 19.4% year-on-year, up from 13.9% in the previous quarter.
- Manufacturing sales growth
- 21.4% year-on-year, compared with 14.5% in the previous quarter.
- Manufacturing operating margin
- 14.7% in Q1 FY27, compared with 13.8% in Q4 FY26.
- Manufacturing raw-material expenses
- Up 27.5% year-on-year; the raw-material-to-sales ratio was 58.1%.