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Indian Firms Boost CSR Spending by 23% to ₹22,212 Crore
20 Apr
Summary
- CSR expenditure rose 23% to ₹22,212 crore in FY25.
- Average net profit increased 22%, driving mandated CSR spending.
- Top 10 companies contributed 34% of total CSR spend.
Corporate Social Responsibility (CSR) expenditure by Indian companies listed on the NSE main board saw a notable 23% increase, reaching ₹22,212 crore in the fiscal year 2024-25. This growth is attributed to a corresponding 22% rise in average net profits over the preceding three years, as mandated by India's CSR framework which requires firms to spend two percent of their average net profit on social initiatives.
The report indicates that out of 2,081 companies analyzed, 1,549 were required to spend on CSR. Their combined average net profit grew to ₹11.76 trillion, suggesting a mandated CSR outlay of ₹22,732 crore. The actual spending of ₹22,212 crore reflects a slight gap, with unspent funds, amounting to ₹3,223 crore, transferred to designated accounts for future use.
This broad-based increase saw 70% of mandated firms raising their CSR outlay. Notably, 48% of companies spent more than the prescribed two percent. Reliance Industries led the pack with over ₹1,300 crore in CSR spending, followed by HDFC Bank and TCS. Public sector undertakings also amplified their contributions, with 71 PSUs spending ₹4,791 crore.
Despite the overall rise, 315 companies fell short of the two percent mandate, primarily due to multi-year projects. Education and healthcare remained the highest allocated sectors for CSR funds, while areas like slum development and support for armed forces veterans received less attention.
