Corporate sales growth in India saw a bit of a breather in Q4 of 2024-25, but the larger story? Industry is still holding firm.
The quarterly results of listed private non-financial companies are out. They show that while revenue growth has eased compared to the last quarter, profitability actually improved. That’s an interesting shift—companies made more from less.
Manufacturing Loses Some Steam
Private manufacturing firms experienced a dip in sales growth. Demand was low. Some industries—like petroleum—dragged the overall performance down. But remove petroleum from the picture, and the manufacturing sector still posted a steady 9% sales growth.
That’s a clear sign: the core industrial engine is not stalling—it’s just navigating rough weather.
IT Rises, Non-IT Stumbles
The IT sector had a better quarter. Sales growth picked up, likely due to global outsourcing demand holding strong. In contrast, non-IT services saw a slowdown. It seems uncertainty in the global economy affected them more.
Still, overall corporate sales growth slowed slightly. But this wasn’t a crash—just a careful step back.
High-Frequency Indicators Show Muscle
If you zoom out beyond Q4 results, May’s data tells a stronger story. PMI manufacturing stayed firm, indicating steady production. Capital goods output rose, a sign that companies are still investing. Steel production also picked up, reflecting demand from construction and heavy industry.
And there’s more. Automobile production bounced back in May. Two-wheelers recovered after a tough April. Three-wheelers saw a sharp rise in output. These are clear signs that demand is picking up.
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Supply Chain Relief
One more positive: supply chain stress is easing. Delivery times are better. Semiconductor supply is improving. And new orders, though slightly lower, are not in free fall. This is helping companies keep things moving.
Power Sector Wobbles
Not everything was rosy. Electricity generation—especially conventional sources—showed weakness for the second month in a row. That might just be seasonal or linked to changing energy patterns, but it’s something to watch.
The Bottom Line
Yes, corporate sales growth slowed. But zoom out, and the picture looks better. India’s industrial sector is holding its ground. Key indicators are resilient. Auto, steel, and capital goods are gaining. IT is growing. Manufacturing is steady if you remove the petroleum drag.
The message is simple: India Inc is adjusting—but not backing down.
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