Corporate Social Responsibility (CSR) spending by companies listed on the National Stock Exchange (NSE) witnessed a strong surge in the financial year 2024–25, reflecting improved profitability and growing corporate commitment toward social initiatives. According to a report by PrimeInfobase, CSR expenditure rose by 23% year-on-year to ₹22,212 crore, compared to ₹18,011 crore in the previous fiscal.

The significant increase in CSR spending has largely been attributed to a robust rise in corporate earnings. Over the preceding three years, the average net profit of these companies grew by about 22%, which directly impacts CSR obligations. Under Indian regulations, eligible companies are required to allocate at least 2% of their average net profits toward CSR activities.

The data indicates a steady recovery in CSR investments after a period of relatively slow growth between FY20 and FY23. Following a 16% increase in FY24, the latest jump suggests renewed momentum, supported by strong financial performance across sectors.

Out of more than 2,100 companies listed on the NSE main board, around 1,549 firms were mandated to undertake CSR spending in FY25, up from 1,399 in the previous year. Of these, an overwhelming 98% complied with the requirement and reported CSR expenditure, highlighting improved adherence to regulatory norms.

In terms of actual spending, companies collectively fell slightly short of the mandated ₹22,732 crore target, with a gap attributed to unspent funds being transferred to designated CSR accounts for future use. Such provisions are allowed, especially for ongoing multi-year projects.

A majority of firms also demonstrated a proactive approach toward CSR. Around 70% of companies increased their spending compared to the previous year, while nearly 48% exceeded the minimum requirement. At the same time, a smaller group of firms either met the exact target or failed to spend the required amount.

The report further highlighted that CSR contributions remain concentrated among top corporations. The top 10 companies accounted for approximately one-third of the total spending. Among them, Reliance Industries emerged as the largest contributor, followed by HDFC Bank and Tata Consultancy Services.

Public sector undertakings (PSUs) also recorded notable growth in CSR contributions. Around 71 PSUs together spent ₹4,791 crore during FY25, marking a considerable increase compared to the previous year.

Sector-wise, education continued to receive the highest share of CSR funds, followed by healthcare. Other areas such as disaster management, slum development, and support for armed forces veterans received comparatively lower allocations, indicating an uneven distribution of CSR investments across sectors.

Overall, the sharp rise in CSR spending underscores the growing alignment between corporate growth and social responsibility in India. With profitability on the rise and compliance levels improving, CSR is increasingly becoming a key component of corporate strategy rather than just a regulatory obligation.