<p>Bengaluru: Sales of listed private non-financial companies rose by 5.5% year-on-year (YoY) during the first quarter ended June 2025 as compared to 7.1% growth in the previous quarter (6.9% in Q1FY25).</p>.<p>Aggregate sales growth (YoY) of 1,736 listed private manufacturing companies moderated further to 5.3% during Q1FY26 from 6.6% in the previous quarter, mainly dragged by weak performance of the petroleum industry, according to the data available on the Reserve Bank of India (RBI) website.</p>.<p>Sales growth (YoY) of IT firms declined to 6% during Q1FY26 from 8.6% in the previous quarter, reversing the upward trend seen since Q1FY25. </p>.Mcap of 8 of top-10 most valued firms erode by Rs 2.24 lakh cr; Reliance, HDFC Bank biggest laggards.<p>Sales growth of non-IT services companies moderated to 7.5% in Q1:2FY26, after recording double-digit growth in the previous three quarters, primarily due to lower sales growth recorded by the transport and storage companies.</p>.<p>Manufacturing companies’ expenses on raw material increased at a slower pace of 4.5% (YoY) as compared to 8.3% during previous quarter, in tandem with moderation in sales growth; consequently, raw material to sales ratio moderated to 54.1% during Q1 from 55.2% in the previous quarter (Table 2A and 2B).</p>.<p>Staff cost of manufacturing, IT and non-IT services companies rose by 8.3%, 5.8% and 8%, respectively, during Q1FY26, lower than the growth recorded during the previous quarter. Staff cost to sales ratio for manufacturing, IT and non-IT services companies inched-up to 5.9%, 48.8%, and 10.6%, respectively, during Q1FY26 from the previous quarter. </p>.<p>Operating profit growth of manufacturing and non-IT services companies moderated to 6.9% and 11.3%, respectively, while it improved to 5.4% for IT companies during Q1 from the previous quarter.</p>.<p>Consequently, operating profit margins improved sequentially for IT companies during Q1FY26, while it moderated for non-IT services sector; operating profit margin for the manufacturing sector remained stable during the quarter.</p>.<p>With sequential rise in profits, manufacturing companies’ interest coverage ratio (ICR)1 improved to 9.1 in Q1FY26 from 8.7 in the previous quarter. Within the services sector, while ICR of non-IT services companies remained stable, ICR of IT firms continued to remain at elevated levels during Q1FY26.</p>
<p>Bengaluru: Sales of listed private non-financial companies rose by 5.5% year-on-year (YoY) during the first quarter ended June 2025 as compared to 7.1% growth in the previous quarter (6.9% in Q1FY25).</p>.<p>Aggregate sales growth (YoY) of 1,736 listed private manufacturing companies moderated further to 5.3% during Q1FY26 from 6.6% in the previous quarter, mainly dragged by weak performance of the petroleum industry, according to the data available on the Reserve Bank of India (RBI) website.</p>.<p>Sales growth (YoY) of IT firms declined to 6% during Q1FY26 from 8.6% in the previous quarter, reversing the upward trend seen since Q1FY25. </p>.Mcap of 8 of top-10 most valued firms erode by Rs 2.24 lakh cr; Reliance, HDFC Bank biggest laggards.<p>Sales growth of non-IT services companies moderated to 7.5% in Q1:2FY26, after recording double-digit growth in the previous three quarters, primarily due to lower sales growth recorded by the transport and storage companies.</p>.<p>Manufacturing companies’ expenses on raw material increased at a slower pace of 4.5% (YoY) as compared to 8.3% during previous quarter, in tandem with moderation in sales growth; consequently, raw material to sales ratio moderated to 54.1% during Q1 from 55.2% in the previous quarter (Table 2A and 2B).</p>.<p>Staff cost of manufacturing, IT and non-IT services companies rose by 8.3%, 5.8% and 8%, respectively, during Q1FY26, lower than the growth recorded during the previous quarter. Staff cost to sales ratio for manufacturing, IT and non-IT services companies inched-up to 5.9%, 48.8%, and 10.6%, respectively, during Q1FY26 from the previous quarter. </p>.<p>Operating profit growth of manufacturing and non-IT services companies moderated to 6.9% and 11.3%, respectively, while it improved to 5.4% for IT companies during Q1 from the previous quarter.</p>.<p>Consequently, operating profit margins improved sequentially for IT companies during Q1FY26, while it moderated for non-IT services sector; operating profit margin for the manufacturing sector remained stable during the quarter.</p>.<p>With sequential rise in profits, manufacturing companies’ interest coverage ratio (ICR)1 improved to 9.1 in Q1FY26 from 8.7 in the previous quarter. Within the services sector, while ICR of non-IT services companies remained stable, ICR of IT firms continued to remain at elevated levels during Q1FY26.</p>