It showed that sales of 1,794 listed private manufacturing companies expanded by 11.4% (y-o-y) during Q3 FY26, up from 8.5% in the previous quarter, on account of higher sales growth in automobiles, electrical machinery and non-ferrous metals industries.
Sales growth of non-IT services companies remained stable at 10.6%, while the IT sector’s sales expanded by 8.8% in October-December 2025, up from 7.8% in the previous quarter.
On the expenditure front, staff costs of manufacturing and IT companies rose at a higher pace to 12.4% and 6.6%, respectively, during Q3 FY26, compared to the previous quarter. However, for non-IT services companies, the staff cost growth moderated to 8.3% during Q3 from 8.9% in the previous quarter.
Staff cost to sales ratio for manufacturing companies remained stable at 5.8% in the third quarter of FY26. However, it moderated for both IT and non-IT services companies during Q3.
Raw material expenses of manufacturing companies rose by 12.7% (y-o-y) during Q3 FY26 in line with the higher sales growth. Raw material to sales ratio also inched up to 57.5% during Q3 from 55.9% in the previous quarter, pointing to input cost pressure, the data showed.
The data further showed that the operating profit of manufacturing companies increased by 11.8% (y-o-y) during Q3, supported by moderate rise in other operating expenses. IT companies’ operating profit growth improved to 11.1%, while it moderated to 4% for non-IT services companies during the quarter.
Operating profit margin of manufacturing companies moderated sequentially during Q3 FY26, while it improved for services sector companies.