Where is India Inc. planning to invest in FY27? As geopolitical tensions, trade disruptions, and recurring energy shocks redraw the global economic map, corporate India is entering FY27 with a distinctly different investment strategy. From defence manufacturing and energy security to data centres, EVs, and critical minerals, companies are increasingly directing capital toward sectors seen as strategic in a world shaped by volatility and supply-chain uncertainty.

According to FY27 guidance compiled from listed companies, aggregate capex reported so far for FY26 stands at around ₹10.5 lakh crore, reflecting a 15% year-on-year increase across nearly 2,000 companies, ICICI Securities said in its latest report.

In simple terms, corporate India has increased spending on factories, infrastructure, capacity expansion, and technology upgrades compared to last year, signalling a broad-based investment cycle led by energy, defence, metals, power, and emerging-age industries.

“The FY27 guidance shared by corporates, alongside Q4 earnings, appears to be aligning thematically – a healthy appetite for capex in the aforementioned areas, to augment capacity in avenues such as power, energy, metal, defence and chemicals,” the brokerage said in the report.

A recurring theme across management commentary this earnings season has been the growing importance of geopolitical risk as a structural driver of investments. Military conflicts, energy disruptions, and global trade tensions since 2022 have pushed companies to build supply-chain resilience, secure critical raw materials, and localise manufacturing capacity.

This shift is especially visible in defence manufacturing, power generation, mining, metals, and oil & gas.

Defence emerges as a major capex theme

The defence sector continues to be among the biggest beneficiaries of the current investment cycle, aided by rising domestic procurement, export opportunities, and global strategic realignments.

Hindustan Aeronautics Limited (HAL) has outlined a long-term capex plan of around ₹12,000 crore, while Bharat Electronics Limited (BEL) is targeting investments of nearly ₹1,200 crore in FY27, largely toward research & development and advanced defence systems. Solar Industries India has also guided capex of around ₹2,100 crore.

“Since 2022, there has been regular escalation in military conflicts, geopolitics and energy shocks — including the Russia-Ukraine war, Gulf conflicts, and tariff wars — spurring demand for defence manufacturing, reliable energy supply, and critical minerals globally, with India being no exception,” the report noted.

Energy security drives investment pipeline

The ongoing West Asia crisis and repeated energy disruptions have also forced companies to rethink supply-chain vulnerabilities. That shift is now visible in investment pipelines stretching from coal mines and steel plants to renewable energy parks, EV ecosystems, and hyperscale data centres.

Coal India Limited (CIL) has outlined a five-year capital expenditure roadmap of nearly ₹10 lakh crore, with FY27 capex projected between ₹1.8 lakh crore and ₹2.5 lakh crore to expand mining capacity and strengthen long-term coal security.

In the oil refining and marketing segment, Indian Oil Corporation Limited (IOCL) has guided FY27 capex of around ₹32,700 crore, while Bharat Petroleum Corporation Limited (BPCL) plans to spend nearly ₹25,000 crore. These investments are focused on refinery upgrades, petrochemical expansion, pipelines, and cleaner energy diversification.

Power transmission and generation companies are also scaling investments aggressively. Power Grid Corporation of India Limited (PGCIL) has maintained FY27 capex guidance of around ₹37,000 crore, while Adani Energy Solutions Limited expects spending of ₹21,000–₹22,000 crore to strengthen transmission infrastructure and integrate renewable capacity into the grid.

Metals, mining and cement continue expansion

Metals and mining companies are expanding capacity to capitalise on both domestic infrastructure demand and global supply-chain shifts.

Tata Steel Limited has indicated FY27 capex of about ₹20,000 crore, while JSW Steel Limited has guided investments in the range of ₹22,000–₹24,000 crore, aimed at capacity additions, downstream integration, and green steel initiatives.

In the cement sector, capex remains healthy, although growth is moderating after years of aggressive expansion. UltraTech Cement Limited has guided annual spending of ₹8,000–₹10,000 crore, while Ambuja Cements Limited is expected to spend around ₹6,000–₹6,500 crore.

Analysts, however, see stronger momentum in other building materials segments such as ceramics, pipes, and wood products, supported by infrastructure and housing demand.

Telecom and new-age sectors maintain momentum

Telecom capex is expected to remain broadly stable in FY27. Bharti Airtel Limited is maintaining annual spending at around ₹45,500 crore, while Vodafone Idea Limited has reiterated a broader medium-term capex plan of nearly ₹45,000 crore, subject to funding visibility.

Meanwhile, new-age sectors continue to emerge as key investment hotspots.

Data centres, green energy, electric vehicles, semiconductors, e-commerce infrastructure, and global capability centres are witnessing sustained capex momentum. Companies such as Reliance Industries Limited, Adani group firms, Microsoft Corporation, and Amazon Web Services are expanding hyperscale data centre investments, while quick-commerce players continue to aggressively scale dark store networks.

Automobile manufacturers are also stepping up investments. Maruti Suzuki India Limited has guided FY27 capex of around ₹14,000 crore toward capacity expansion and EV development, while Tata Motors Limited continues to maintain capex at 2–4% of revenue.

Green energy remains among the fastest-growing capex themes. NTPC Green Energy Limited is sharply increasing investments, with FY27 capex projected at nearly ₹35,800 crore, while Adani Green Energy Limited has guided ₹40,000–₹42,000 crore toward renewable energy expansion.