Pvt sector capital expenditure unlikely to rise despite near decadal-high profitability

Private sector capital expenditure is unlikely to pick up in a sustained way despite India Inc's profitability being near decadal high, domestic ratings agency Crisil said on Thursday.

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MUMBAI:

The profitability of India Inc is set to increase for the third year in a row in FY26 on the back of soft commodity prices, the agency said.

An analysis of 800 companies excluding ones in the banking and finance and oil and gas sectors revealed that the pre-tax profit margins are set to widen to up to 20 per cent in FY26.

It can be noted that the government is leading the investments in the economy for the last few years, and there have been calls for a revival in the corporate capex as well.