RBI’s Q1 survey shows moderated sentiment, but manufacturers expect demand, production, and exports to improve in the coming quarters.

• Q1 saw a seasonal slowdown with weaker production, orders, and capacity utilisation; input costs remained a concern.
• Outlook for Q2 shows optimism in production, exports, and business conditions, indicating recovery momentum ahead.
• Firms expect pricing power to offset input cost rise, sustaining margins through Q3 and Q4 FY26.