Home / Business and Economy / Corporate Funding Surges 58% in Q3 2025
Corporate Funding Surges 58% in Q3 2025
3 Dec
Summary
- Corporate fundraising jumped 58.1% in Q3 2025, fastest pace since June 2023.
- Net profits, up 54.5% YoY, became top funding source, accounting for 40%.
- Bank credit surged to ₹2.4 trillion, essential for the funding rebound.
Corporate fundraising saw a robust resurgence in the September 2025 quarter, experiencing a 58.1% year-on-year increase. This growth represents the fastest pace observed since June 2023, following a subdued performance in the preceding quarter. Total funds raised reached an estimated ₹7.5 trillion, a substantial rise from the previous period. Domestic macro indicators and healthy consumption forecasts bolstered investor and issuer confidence.
Net profits emerged as the primary driver of this funding surge, accounting for approximately 40% of all funds raised. With profits up 54.5% year-on-year, companies increasingly favored internal accruals for financing operations and expansion. This strategic shift towards self-funding helped maintain robust balance sheets and reduced reliance on debt.
While fresh equity issuances remained subdued, bank credit experienced a significant rebound. Net borrowing through banks reached ₹2.4 trillion, contributing about 31% of total funds mobilized. This increase in bank credit was facilitated by companies entering the cycle with less leverage, creating room for new funding and powering the overall corporate funding recovery.
