Private Capex Intentions Decline to ₹9.55 Lakh Cr for FY27: NSO Survey

According to a survey released by the National Statistics Office (NSO) on March 23, private sector capex by large enterprises is expected to ease in FY27, even as companies continue strong capital expenditure in the current financial year.

Private Capex Strong in FY26 but Outlook Softens

Aggregate private capex is estimated at ₹11.44 lakh crore in FY26, reflecting continued momentum in corporate investment.

However, investment intentions for FY27 have eased to ₹9.55 lakh crore, signalling a moderation in planned spending by large enterprises.

The NSO noted that forward projections are often conservative, suggesting that actual investments could exceed initial estimates.

Capex Levels Show Stability Across Enterprises

A like-to-like analysis of 3,819 enterprises shows that investment levels may stabilise rather than decline sharply.

• Capex among these firms is projected at ₹6.114 lakh crore in FY27, largely unchanged from ₹6.112 lakh crore in FY26 and ₹6.001 lakh crore in FY25. This suggests investment activity may stabilise rather than decline.
• Actual capital expenditure in FY25 closely matched earlier projections, with a realisation ratio exceeding 96%. This suggests that companies have largely followed through on their planned investments, indicating strong execution.

Core Asset Creation Drives Capital Investment

The ongoing investment cycle remains focused on strengthening core operations.

• Around 49% of firms are investing in new asset creation
• Nearly 38% are allocating funds towards upgrading existing assets

This highlights a continued emphasis on expanding capacity and improving operational efficiency.

Internal Accruals Remain Key Funding Source

A significant portion of capital expenditure is funded through internal resources.

More than 65% of capex is financed through internal accruals, indicating stronger corporate balance sheets and reduced reliance on external borrowing.

Emerging Sectors See Gradual Investment Uptick

The survey also points to gradual diversification in investment patterns.

• Around 7% of firms are investing in green energy
• Nearly 6% are allocating funds to robotic equipment in manufacturing
• About 3% of firms are deploying robotics across sectors

These trends suggest increasing adoption of automation and new technologies, alongside traditional investment areas.

Conclusion

The NSO survey indicates that while investment activity remains robust in FY26, future spending plans show a more cautious trend.

Overall, the data points to a phase of stabilisation, with companies continuing to invest in core operations while gradually expanding into new sectors.

Source: https://www.moneycontrol.com

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