S&P sees top companies' capex rise to $850 bn over 5 years

New Delhi: India's top companies will spend $800-850 billion over the next five years to 2030, doubling the capital expenditure amount spent in the previous five-year period, S&P Global Ratings said on Tuesday. These investment plans are likely to strengthen credit profiles than weaken them, it added.

"Indian companies are well positioned for a growth run," said Neel Gopalakrishnan, S&P Global Ratings credit analyst. "Barring execution mistakes or negative macro changes, these investments should boost business scale without driving up leverage."

The analysis by the ratings agency covers top 100 Indian companies by market capitalisation and some unlisted firms, and incorporates a study by Crisil Intelligence, a subsidiary of S&P Global Ratings.


Financing for these investments will primarily come from operating cash flows, except for power sector, and will be supported by domestic funding options, according to the report titled 'India Inc's spending spree will likely pay off'.

Balance sheets are currently at their healthiest level in years, according to the report. Companies are ramping up investments to meet demand, bolstered by favourable government policies and a positive economic outlook. Successful implementation of these plans is expected to expand operational scale, it added.