Services firms maintain positive outlook on demand conditions in Q2:2025-26: RBI Survey
The Reserve Bank of India (RBI) in its quarterly Services and Infrastructure Outlook Survey for Q1:2025-26 has found that services sector enterprises assessed improvement in the overall business situation, employment conditions and their turnover during Q1:2025-26. Besides, for Q1:2025-26, services firms’ assessment on profit margin improved, supported by improvement in turnover and selling prices.
The survey report further noted that services firms maintained their positive outlook on demand conditions in Q2:2025-26, though their level of optimism recorded some moderation vis-a-vis the previous quarter. For Q2:2025-26, pressures from wage bill, input cost and finance cost are likely to ease moderately, but firms expressed lower optimism regarding selling prices and profit margins. Services sector firms remain optimistic on overall business situation, turnover and employment till Q4:2025-26. Further, input cost pressures are likely to persist in H2:2025-26.
According to the survey report, infrastructure companies remained positive on overall business situation, employment as well as their turnover during Q1:2025-26. For Q2:2025-26, infrastructure firms remain highly optimistic on overall business situation and turnover, while cost pressures are likely to remain high, leading to tempered expectations for increase in selling prices and profit margins. Further, the survey report noted that infrastructure firms expect sequential improvement in turnover and overall business situation during H2:2025-26.
