These 5 Companies Have Doubled Their Capex in Just 3 Years – Is Your Portfolio Missing Out?

Discover the 5 companies that have doubled their capital investments in the last 3 years—driven by government spending and future growth ambitions!

India's Finance Minister Nirmala Sitharaman, in the Union Budget for FY26, set capital expenditure (capex) at Rs. 11,21,000 crore (US$ 128.60 billion), a 10% increase from the revised FY25 estimate of Rs. 10,18,000 crore (US$ 116.78 billion). However, the government is expected to fall short of its original FY25 capex target by Rs. 93,000 crore (US$ 10.67 billion), with the revised figure at Rs. 11,11,000 crore (US$ 127.45 billion), making the FY26 increase less than 1%. Emphasizing public spending as a priority, Sitharaman also announced a Rs. 1,50,000 crore (US$ 17.21 billion) 50-year interest-free loan for states to support capex and reforms. Capex growth slowed in H1 FY25 due to elections, but CGA data revealed a 95% increase in December 2024 compared to December 2023. By December 2024, 62% of the budgeted capex was utilized, down from 67% the previous year.

Government capex and company capex are closely connected because government spending on infrastructure and public projects creates demand for private companies. When the government invests in roads, railways, and power, it increases orders for industries like steel, cement, and construction. This encourages companies to expand their capacity to meet rising demand.

For example, if the government spends more on highways, companies in sectors like construction, cement, and steel benefit from larger contracts. This increased demand pushes these companies to invest in new plants, machinery, and technology. Additionally, better infrastructure lowers costs and improves supply chains, making it easier for companies to grow.

When government capex slows down, private companies may delay or reduce their own investments due to lower demand and uncertainty. Thus, steady government spending is key to boosting private sector growth and encouraging long-term investments.

The increase in Net Block for companies over the last three years is closely linked to the rise in government capex. As the government boosts spending on infrastructure—such as roads, railways, and energy—companies supplying these sectors (like steel, cement, and capital goods) see higher demand. To meet this growing demand, these companies invest in new plants, machinery, and technology, leading to a rise in their Gross Block (total fixed assets).

At the same time, new projects and expansions increase Capital Work in Progress (CWIP), as many assets are still under construction. Once these projects are completed, they are added to Net Block after adjusting for depreciation.

Below are the companies that have doubled their capex in the last three years:

Disclaimer: The article is for informational purposes only and not investment advice.