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Reserve Bank of India — Publications·IN·

Order Books, Inventories and Capacity Utilisation Survey on the Manufacturing sector for Q1:2026-27

Today, the Reserve Bank released the results of its 74th round of the quarterly Order Books, Inventories, and Capacity Utilisation Survey (OBICUS), conducted during Q2:2026-27, and covered 1076 manufacturing companies. The survey 1 provides a snapshot of the demand conditions in India’s manufacturing sector during April-June 2026. Highlights: At the aggregate level, capacity utilisation (CU) in the manufacturing sector decreased to 74.6 per cent in Q1:2026-27 from 77.4 per cent in the previous quarter. However, the seasonally adjusted CU (CU-SA) increased by 110 basis points from the previous quarter and stood at 76.3 per cent in Q1:2026-27. Both CU and CU-SA for Q1:2026-27 increased by 50 basis points as compared to their levels in the corresponding quarter of the previous year ( Chart 1 and Table 1 ). Manufacturers reported higher growth in new orders during Q1:2026-27 both on an annual (y-o-y) and sequential basis (q-o-q) as compared to growth observed during Q4:2025-26 ( Chart 2 and Table 2A ). As a ratio to sales, both finished goods inventory (FGI), and raw material inventory (RMI) increased during Q1:2026-27 as compared with their levels in the previous quarter ( Chart 3 and

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