Corporate India Reports 7.2% Sales Growth In FY25, RBI Data Shows

India’s corporate sector displayed renewed momentum in FY25, with listed private non-financial companies recording a 7.2% rise in sales, an improvement from the 4.7% growth registered in FY24.

The data, compiled by the Reserve Bank of India from the financial statements of 3,902 listed non-government non-financial firms, reflects a broad, though uneven, recovery.

The manufacturing sector saw a sales growth of 6.0%, up from 3.5% the previous year.

Notable gains were observed in automobiles, electrical machinery, food and beverages, and pharmaceuticals.

However, this progress was partially offset by declines in petroleum and metals, particularly iron and steel, due to weak global demand and volatile commodity prices.

Despite the gains, rising costs weighed heavily.

Raw material expenses for manufacturers increased by 6.6%, and their share of total sales also grew.

This indicates narrowing operational buffers. Additionally, manufacturers faced a 10% rise in staff expenses, adding to the overall cost burden.

Operating profit margins contracted by 20 basis points to 14.2%.

Services sector drives growth

The services sector outpaced manufacturing in terms of growth.

Information technology (IT) firms posted a 7.1% rise in sales, up from 5.5% last year, even as they contended with global headwinds.

Non-IT services, however, showed more robust expansion, registering double-digit growth.

This was driven by strong performances in telecommunications, logistics, and trade-related services.

Labour costs were a major contributor to rising expenses across the services sector.

IT companies saw staff costs rise by 4.4%, while non-IT services faced a sharper 12% increase, reflecting wage pressures in a still-tight labour market.

Though top-line growth improved, profitability remained under pressure.

The squeeze on margins from rising raw material and labour costs has emerged as a consistent trend across sectors.

This indicates that while demand is recovering, firms continue to face constraints on the cost front.

The RBI’s analysis suggests that the Indian corporate sector is gradually recovering, underpinned by rising consumer demand and resilient service-sector activity.

However, risks persist in the form of global uncertainty, commodity price fluctuations, and wage inflation.

The outlook for FY26 will likely depend on continued domestic demand, easing input costs, and improved global trade dynamics.

Policymakers and businesses will need to remain agile to sustain momentum while managing operational challenges in an evolving economic environment.

Also Read: India Posts $13.5 Billion Current Account Surplus In Q4 FY25: RBI