<h2>Executive Summary</h2><p><strong>IMA’s BCPI</strong> rose by a sharp 4.6 points, to 62.7 in January 2026, reversing the dip seen in the previous quarter.</p><p>The <strong>upturn</strong> was led by gains across all three main parameters, with business sentiment showing the strongest momentum.</p><p><strong>Confidence strengthened</strong> across most sectors, with General Services being the only exception.</p><p>Both <strong>manufacturing</strong> (65.2) and <strong>services</strong> (63.1) eased but manufacturing continued to hold the lead, supported by firmer business confidence and capex intent.</p>.<h2><strong>The Q4 FY26 BCPI: Strengthening</strong></h2> .<h2><strong>The Sectoral View: </strong>Automotives Lead, General Services Falter</h2>.<h2><strong>Momentum is Up; Manufacturing in the Lead</strong></h2>.<h2><strong>Sales and New Orders: Demand on the rise</strong></h2>.<p>At an aggregate level, sentiment has strengthened on both parameters, with the net sales score rising to 41.7, up 3.5 pp, and new orders climbing nearly 15 points, to 44.4. CEOs appear marginally more optimistic than CFOs on sales expectations, while CFOs are significantly more positive on new orders.</p><p> Services firms express stronger confidence on sales, whereas manufacturing leads on order expectations. At the sectoral level, BFSI is the most buoyant on sales, with a net score of 72.7, while construction stands out on new orders, at 91.7. General services is the only sector reporting a negative net score on new orders. Notably, mid-sized firms (Rs 500–2,500 crores in revenue) have the strongest projections for both sales and new order pipelines.</p>.<h2><strong>Profitability: Easing; Capacity Utilisation: Up</strong></h2>.<p>Overall sentiment on profitability and capacity utilisation has improved relative to the previous quarter. The net profit score increased by 5.9 points and capacity utilisation by 6.7.</p><p>By segment, services firms expect to outperform manufacturers on both metrics. Sectorally, BFSI leads on profit expectations, while construction reports the strongest outlook on capacity use. General services and industrials show the weakest sentiment on profitability, and consumer goods firms lag on utilisation rates. Larger firms (> Rs 2,500 crores) display the most confident outlook across both metrics.</p>.<h2><strong>New Hiring and CapEx: Improving</strong></h2>.<p>Hiring and capex intent have firmed up, with both indicators improving by roughly 6 points compared to the previous quarter. Manufacturing demonstrates stronger capex momentum relative to services.</p><p>Construction firms report the strongest hiring plans, while chemicals register the weakest outlook, with a net-negative score of −20%. On the investment front, consumer goods companies are the most positive on capex, whereas general services reflect a net-negative stance.</p>.<h2><strong>Soft Spends: On the Rise</strong></h2>.<p>Sentiment on soft spends has turned around meaningfully after negative readings in the previous quarter. Services firms anticipate higher allocations across advertising, team-building and travel.</p><p>Construction leads on team-building and travel expenditure, while general services remain negative on advertising. BFSI and chemicals reflect subdued expectations on team morale spending.</p>.<h2><strong>Annexure 1: Headline Results</strong></h2>.<h2><strong>Annexure 2 – Business Performance – Net Scores</strong></h2>
<h2>Executive Summary</h2><p><strong>IMA’s BCPI</strong> rose by a sharp 4.6 points, to 62.7 in January 2026, reversing the dip seen in the previous quarter.</p><p>The <strong>upturn</strong> was led by gains across all three main parameters, with business sentiment showing the strongest momentum.</p><p><strong>Confidence strengthened</strong> across most sectors, with General Services being the only exception.</p><p>Both <strong>manufacturing</strong> (65.2) and <strong>services</strong> (63.1) eased but manufacturing continued to hold the lead, supported by firmer business confidence and capex intent.</p>.<h2><strong>The Q4 FY26 BCPI: Strengthening</strong></h2> .<h2><strong>The Sectoral View: </strong>Automotives Lead, General Services Falter</h2>.<h2><strong>Momentum is Up; Manufacturing in the Lead</strong></h2>.<h2><strong>Sales and New Orders: Demand on the rise</strong></h2>.<p>At an aggregate level, sentiment has strengthened on both parameters, with the net sales score rising to 41.7, up 3.5 pp, and new orders climbing nearly 15 points, to 44.4. CEOs appear marginally more optimistic than CFOs on sales expectations, while CFOs are significantly more positive on new orders.</p><p> Services firms express stronger confidence on sales, whereas manufacturing leads on order expectations. At the sectoral level, BFSI is the most buoyant on sales, with a net score of 72.7, while construction stands out on new orders, at 91.7. General services is the only sector reporting a negative net score on new orders. Notably, mid-sized firms (Rs 500–2,500 crores in revenue) have the strongest projections for both sales and new order pipelines.</p>.<h2><strong>Profitability: Easing; Capacity Utilisation: Up</strong></h2>.<p>Overall sentiment on profitability and capacity utilisation has improved relative to the previous quarter. The net profit score increased by 5.9 points and capacity utilisation by 6.7.</p><p>By segment, services firms expect to outperform manufacturers on both metrics. Sectorally, BFSI leads on profit expectations, while construction reports the strongest outlook on capacity use. General services and industrials show the weakest sentiment on profitability, and consumer goods firms lag on utilisation rates. Larger firms (> Rs 2,500 crores) display the most confident outlook across both metrics.</p>.<h2><strong>New Hiring and CapEx: Improving</strong></h2>.<p>Hiring and capex intent have firmed up, with both indicators improving by roughly 6 points compared to the previous quarter. Manufacturing demonstrates stronger capex momentum relative to services.</p><p>Construction firms report the strongest hiring plans, while chemicals register the weakest outlook, with a net-negative score of −20%. On the investment front, consumer goods companies are the most positive on capex, whereas general services reflect a net-negative stance.</p>.<h2><strong>Soft Spends: On the Rise</strong></h2>.<p>Sentiment on soft spends has turned around meaningfully after negative readings in the previous quarter. Services firms anticipate higher allocations across advertising, team-building and travel.</p><p>Construction leads on team-building and travel expenditure, while general services remain negative on advertising. BFSI and chemicals reflect subdued expectations on team morale spending.</p>.<h2><strong>Annexure 1: Headline Results</strong></h2>.<h2><strong>Annexure 2 – Business Performance – Net Scores</strong></h2>
