Evaluating the Performance of Industrial Sub-Segments: A Year-End Review

Industrial Update – Newsletter – December 2025

IMAP’s Industrials group brings you this monthly update with a focus on latest news, transactions and interesting snippets from the Industrials domain in India

Considering the overall trends in Index of Industrial Production (IIP) and PMI over last year, the manufacturing sector performed satisfactorily, with a few exceptions. While Electronics Manufacturing experienced robust revenue growth, sectors such as Defense, Electrical and Heavy Industrial Machinery did not achieve revenue growth commensurate with order inflow.. The automotive segment performed moderately, whereas the Building Materials sector underperformed..

Some recent transactions

Recent News

• Despite stable inflation and GDP growth, the rupee hit an all-time low of ~$1 = ₹90.95, driven by – strong global dollar demand, capital outflows from India (as investors seek higher returns elsewhere), a widening trade deficit and general global economic uncertainty
• This also caused gold, silver, and platinum hit record highs of ₹13,855/g, ₹232/g, and ₹7,500/g driven by safe-haven allocations
• Manufacturing PMI in India decreased slightly to 56.4 in December from 56.6 points in November. A figure >50 Signifies growth
• In Dec’25, the RBI cut the repo rate by ~25 bps to ~5.25%; US Fed also cut its key interest rate by ~25 bps to range of 3.5% to 3.25%
• China’s trade surplus reached US$ 1.1 trillion in the first 11 months of 2025, surpassing the US$ 992 billion recorded for all of 2024. While exports to the US declined, China increased its exports to other regions, notably the EU.

IMAP Industrials Index & Valuation of sub-segments

Commodity Prices Index