State enterprises hit half their capex target in first half of FY27

Central public sector enterprises (CPSEs) have clocked half their annual capital expenditure target in the first six months of fiscal 2027, signalling a steady pace of infrastructure investment despite some moderation in recent weeks. The sector's capex rose 12 per cent year-on-year during April-September, propelled by increased spending from Railways and the National Highway Authority of India (NHAI), the two dominant contributors to public infrastructure development.

Railways and NHAI together accounted for a substantial portion of total CPSE capex during the period, maintaining their status as key drivers of the government's infrastructure agenda. The strong growth in the first half reflects the broader push to sustain capital formation across strategic sectors including transport, energy and telecommunications.

However, the September figures point to some weakness in the trajectory. Monthly capital expenditure fell 17 per cent in September compared to the previous year, raising questions about the sustained pace of spending in the coming months. Analysts attribute the dip to seasonal factors and project completion cycles, though the government will need to ensure acceleration in the second half to meet full-year targets.

With CPSEs already at the halfway mark of their capex goals, the performance in October-March will be critical in determining whether the sector achieves its full-year objectives. The government has emphasized infrastructure spending as a key pillar of economic growth, making the trajectory of public enterprise capex a closely watched indicator of investment momentum in the economy.