Listed Firms' CSR Spending Surges 23% in FY25 Amid Profit Growth
Corporate Social Responsibility (CSR) spending by listed companies in India rose sharply by 23% in the fiscal year 2025, reaching Rs 22,212 crore compared to Rs 18,011 crore in the previous year. This significant increase follows a 16% rise in FY24, marking a strong recovery after four years of stagnation. The surge is primarily attributed to robust corporate profitability, with average net profits of mandated firms growing by 22% over the preceding three years. Under Indian regulations, eligible companies must allocate at least 2% of their average net profits to CSR initiatives. In FY25, 98% of the 1,549 mandated companies reported CSR expenditure, with nearly half exceeding the mandatory requirement. Education remained the top recipient of funds, followed by healthcare, while areas like slum development received minimal funding. Experts note that the government is considering raising financial thresholds for CSR eligibility to improve ease of doing business. The data highlights a trend where corporate success is increasingly channelled into social upliftment, with even some loss-making firms contributing to CSR causes.
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Listed Firms' CSR Spending Surges 23% in FY25 Amid Profit Growth
Corporate Social Responsibility (CSR) spending by listed companies in India rose sharply by 23% in the fiscal year 2025, reaching Rs 22,212 crore compared to Rs 18,011 crore in the previous year. This significant increase follows a 16% rise in FY24, marking a strong recovery after four years of stagnation. The surge is primarily attributed to robust corporate profitability, with average net profits of mandated firms growing by 22% over the preceding three years. Under Indian regulations, eligible companies must allocate at least 2% of their average net profits to CSR initiatives. In FY25, 98% of the 1,549 mandated companies reported CSR expenditure, with nearly half exceeding the mandatory requirement. Education remained the top recipient of funds, followed by healthcare, while areas like slum development received minimal funding. Experts note that the government is considering raising financial thresholds for CSR eligibility to improve ease of doing business. The data highlights a trend where corporate success is increasingly channelled into social upliftment, with even some loss-making firms contributing to CSR causes.
The Indian Express