Cash and bank balances of listed firms cross Rs 10 lakh crore in FY25

Sector-wise, the IT industry led with cash balance exceeding Rs 1.17 lakh crore in FY25

India Inc’s total cash and bank balances exceeded Rs 10 lakh crore for the first time in FY25, a development analysts attribute to a strategic recalibration in corporate treasury management amid persistent economic and geopolitical uncertainty.

Data from ACE Equities shows that 3,611 listed companies—excluding those in the BFSI and oil & gas sectors—reported aggregate cash and bank holdings of Rs 10.67 lakh crore at the end of FY25, marking a 15 percent increase over the previous year.

In FY24, 4,289 firms held Rs 9.26 lakh crore in reserves. Compared to FY20, when total holdings stood at Rs 5.5 lakh crore, this represents an increase of over 50 percent.

“This 15% year-on-year jump (and over 50% since FY20) in cash reflects not only strong earnings across sectors such as auto, IT, pharma, and renewables, but also a shift toward financial prudence,” said Akshat Garg, AVP at Choice Wealth. “Corporates are building cash buffers in response to global economic weakness, trade frictions, and tariff headwinds that threaten export revenues.”

Garg added that companies are hesitant to deploy capital amid concerns over a potential global slowdown, volatile commodity and currency markets, and stretched asset valuations.

Sector-wise, the IT industry led with cash balance exceeding Rs 1.17 lakh crore in FY25. The automobile and auto ancillary sector followed closely with Rs 1.15 lakh crore. Metals, steel, and mining firms held Rs 1.1 lakh crore collectively, while engineering companies posted over Rs 73,000 crore. Pharmaceutical firms maintained over Rs 65,000 crore, and the defence sector reported Rs 54,400 crore in cash balance.

Experts said that in the face of uncertain demand, firms remain cautious about fresh capital expenditure. Instead, they are preserving liquidity for potential acquisitions or to navigate disruptions such as regulatory shifts or supply chain shocks. This cautious stance reflects a more evolved approach to risk, with companies favouring flexibility over aggressive expansion.

While this signals restrained investment in the short term, it equips India Inc to respond swiftly once market clarity improves—potentially paving the way for consolidation and innovation. The rising cash pile, experts said, is a testament to both the resilience and pragmatic optimism of Indian corporates.

Apurva Sheth, Head of Market Perspectives and Research at Samco Securities, observed that private sector capital expenditure has remained muted in recent years, with firms prioritising balance sheet deleveraging. Public sector investments have largely driven infrastructure growth across segments like roads, railways, and defence.

Sheth further noted that China’s dominance as a low-cost global supplier has delayed domestic modernisation and expansion plans. Additionally, the introduction of tariff measures under President Trump’s administration has added to the hesitation, prompting Indian companies to adopt a wait-and-watch approach.

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