Sales Rebound in FY25 but Margins Under Pressure: RBI Data Highlights 7.2% Growth for Private Listed Firms
By Shishta Dutta | Published at: Jun 27, 2025 03:18 PM IST
Mumbai, 27 June 2025: The Reserve Bank of India (RBI) has released its annual analysis of the performance of India’s private corporate sector for FY 2024-25, based on abridged financial data from 3,902 listed non-government, non-financial (NGNF) companies. The data show a moderate rebound in sales growth to 7.2%, though profitability continued to face strain due to rising costs, resulting in narrower operating margins.
Headline Financial Trends: FY25 vs FY24
| Metric | FY24 | FY25 | Change |
|---|---|---|---|
| Overall Sales Growth | 4.7% | 7.2% | ▲ 250 bps |
| Manufacturing Sales Growth | 3.5% | 6.0% | ▲ 250 bps |
| IT Sector Sales Growth | 5.5% | 7.1% | ▲ 160 bps |
| Services (Non-IT) Sales Growth | 7.9% | 11.4% | ▲ 350 bps |
| Manufacturing Operating Profit Growth | 12.4% | 6.0% | ▼ 640 bps |
| IT Operating Profit Growth | 5.5% | 6.1% | ▲ 60 bps |
| Non-IT Services Operating Profit Growth | 22.2% | 15.9% | ▼ 630 bps |
Source: Capitaline Database & RBI Staff Estimates
Manufacturing Sector Overview
Sales within the manufacturing segment rose to 6.0%, a notable increase from 3.5% in FY24. Key contributors to this rise included the automotive, electrical equipment, food and beverages, and pharmaceutical industries.
However, the petroleum and iron & steel sectors reported lower sales, pulling down the overall momentum. Raw material costs surged by 6.6%, pushing the raw material-to-sales ratio up from 54.2% to 55.7%, signalling rising input pressure.
Operating profit margin for manufacturing fell slightly to 14.2%, declining by 20 basis points year-on-year.
IT Services Sector Performance
The information technology sector recorded a modest improvement, with sales rising to 7.1% from 5.5% in the previous year. Employee costs in this segment grew by 4.4%, helping maintain a relatively stable operating profit margin of 21.9%, down marginally by 80 basis points.
Non-IT Services Register Robust Growth
Non-IT service providers posted strong sales growth of 11.4%, driven primarily by sectors such as telecom, transport and logistics, and wholesale & retail trade. Despite this sales momentum, operating profit margin dropped slightly to 22.1%, down 30 basis points from the previous financial year.
Cost Pressures and Profit Margins by Sector
| Category | Staff Cost Growth (FY25) | Operating Profit Margin FY25 | Change YoY |
|---|---|---|---|
| Manufacturing | 10.0% | 14.2% | ▼ 20 bps |
| IT Services | 4.4% | 21.9% | ▼ 80 bps |
| Non-IT Services | 12.0% | 22.1% | ▼ 30 bps |
Debt Servicing and Leverage
The Interest Coverage Ratio (ICR) improved across most sectors in FY25, with all industries reporting ICRs above 1, indicating that firms retained adequate capacity to service debt despite falling profitability.
Strategic Outlook and Economic Implications
The FY25 data reveal a broad-based recovery in sales, suggesting renewed momentum in the post-pandemic period. However, increasing raw material and wage costs placed pressure on bottom lines across sectors. The significant drop in operating profit growth, especially in manufacturing and non-IT services, points to an urgent need for efficiency gains and stronger pricing strategies in an increasingly cost-sensitive environment.
About the Report
This report is derived from the RBI’s press release dated 26 June 2025 and compiles financial aggregates for 3,902 listed NGNF companies for the financial year ending 31 March 2025.
The analysis includes industry-wise and size-wise breakdowns as per SEBI-compliant reporting standards.
For complete tables, ratios, and sectoral comparisons, visit the RBI’s Statistical Database
REF: https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/PR59656D3BEB40BB24CF786B6C93FAC3FEC90.PDF
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