The Reserve Bank of India (RBI) in its latest quarterly services and infrastructure outlook survey has showed that business conditions across the services sector strengthened in Q2:2026-27, with firms reporting improvement in turnover and full-time employment. During Q2:2026-27, services firms faced increased cost pressures, leading to some increase in selling prices, while sentiment around profit margins remained subdued.
The survey report further stated that services firms retained a positive outlook on demand conditions for Q3:2026-27, although optimism moderated compared with the previous quarter. Firms expect cost pressures to ease moderately in Q3:2026-27, while their outlook for selling prices and profit margins remained relatively less optimistic.
Further, infrastructure companies remained optimistic on overall business situation, employment, and turnover during Q2:2026-27. At the same time, infra companies reported some easing in cost pressures, while sentiments on selling price and profit margin moderated. For Q3:2026-27, infrastructure firms remain confident on overall business conditions and turnover. Besides, sentiments on both selling price and profit margin moderated for Q3:2026-27. For Q4:2026-27 and Q1:2027-28, infrastructure firms remain optimistic on overall business situation and their own turnover, however they expect rise in input costs with concomitant rise in selling prices.
