Performance of Private Corporate Business Sector during Q1:2026-27

The Reserve Bank released data on the performance of private corporate businesses during the first quarter of 2026-27. Analyzing 3,247 listed non-government non-financial companies, sales growth accelerated to 19.4 percent year-over-year, up from 13.9 percent in the previous quarter. Manufacturing companies, particularly in the automobile, petroleum, and electrical machinery industries, saw a 21.4 percent year-over-year sales increase.

IT companies experienced double-digit growth of 14.8 percent, compared to 9.9 percent in the prior quarter. Meanwhile, non-IT services companies maintained a healthy 19.7 percent growth, primarily driven by the wholesale and retail trade sector. Raw material expenses for manufacturing companies surged by 27.5 percent year-over-year, but the raw material-to-sales ratio declined slightly to 58.1 percent.

Staff costs for manufacturing, IT, and non-IT services companies increased by 12.4 percent, 7.6 percent, and 11.2 percent, respectively. Despite higher input costs, operating profit growth remained robust across sectors. Manufacturing companies saw a 21.3 percent year-over-year increase, IT firms improved to 19.9 percent, and non-IT services companies grew by 12.7 percent.

Overall, interest coverage ratios for manufacturing and non-IT services companies improved, while IT firms maintained elevated levels.