Have India's Listed Corporates Achieved Higher Sales Growth for 2024-25?
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Synopsis
India's corporate landscape shows a remarkable transformation as listed private sector firms post a surprising sales growth of 7.2% for FY 2024-25, surpassing the previous year's figures. This trend, driven by key sectors like manufacturing and IT, reflects resilience despite global challenges. Dive into the data and discover what this means for the economy.
Key Takeaways
- 7.2% sales growth for India's listed firms in FY 2024-25.
- Manufacturing sector sales grew by 6.0%.
- IT sector sales growth accelerated to 7.1%.
- Challenges persist in the petroleum and steel industries.
- Operating profit margins declined across sectors.
Mumbai, June 28 (NationPress) In the financial year 2024-25, India's listed private sector non-financial firms demonstrated a robust sales growth of 7.2 percent, a significant increase from 4.7 percent in the prior year, as per the recent findings published by the RBI.
Sales within the manufacturing sector saw an uplift of 6.0 percent in FY25, up from 3.5 percent the previous year, driven by advancements in the automobile, electrical machinery, food and beverages, and pharmaceutical sectors, according to an RBI report.
Nevertheless, the petroleum, iron, and steel industries faced a decline in sales during FY25, influenced by price fluctuations and a downturn in international demand.
The IT sector's sales growth accelerated to 7.1 percent in FY25, up from 5.5 percent the previous year, despite facing global challenges.
Non-IT services companies experienced double-digit sales growth in 2024-25, fueled by strong performances in telecommunication, transport, and storage services, in addition to the wholesale and retail trade sectors.
The RBI's analysis is founded on the financial records of 3,902 listed non-government non-financial companies.
With the surge in sales, manufacturing firms also saw their raw material costs rise by 6.6 percent in FY25; the raw material-to-sales ratio increased to 55.7 percent in FY25 from 54.2 percent the previous year, indicating pressure from input costs, as reported by the RBI.
Labor costs rose by 10.0 percent, 4.4 percent, and 12.0 percent for manufacturing, IT, and non-IT services companies respectively in FY25. The staff cost-to-sales ratio remained relatively stable for manufacturing companies, albeit it showed moderation for services companies.
However, due to rising input costs, the operating profit growth of manufacturing firms slowed to 6 percent in 2024-25, down from 12.4 percent in the previous year.
Profit growth in the services sector moderated to 15.9 percent in 2024-25 for non-IT services companies, while it rose slightly to 6.1 percent for IT firms.
The operating profit margin for manufacturing companies decreased by 20 basis points (bps) to 14.2 percent, whereas it fell by 80 bps to 21.9 percent for IT firms.
Nonetheless, companies showcased strong financial health, with the interest coverage ratio—which indicates debt servicing capacity—improving across major sectors during 2024-25 compared to the previous year.
Point of View
I view the recent sales growth among India's listed non-financial companies as a positive indicator of resilience in a fluctuating global market. The data reflects not only the strength of key sectors but also highlights challenges that need addressing. It's crucial for policymakers and business leaders to leverage this momentum to ensure sustainable growth.
NationPress
28/06/2025
Frequently Asked Questions
What sales growth did India's listed companies achieve for FY 2024-25?
India's listed private sector non-financial companies recorded a sales growth of 7.2% for FY 2024-25, compared to 4.7% in the previous year.
Which sectors contributed to the sales growth?
The automobile, electrical machinery, food and beverages, and pharmaceutical industries were key contributors to the sales growth in the manufacturing sector.
Did any industries experience a decline in sales?
Yes, the petroleum, iron, and steel industries recorded a contraction in sales during FY25 due to price volatility and reduced international demand.
What was the performance of IT companies during FY 2024-25?
IT companies experienced an acceleration in sales growth to 7.1% in FY25, up from 5.5% in the previous year, despite global challenges.
How did the operating profit margins change in FY 2024-25?
The operating profit margin for manufacturing companies decreased by 20 basis points to 14.2%, while it declined by 80 basis points to 21.9% for IT companies.
