SBI joins L&T in signaling revival of private capex

After years of caution, India’s private sector is beginning to spend again. Capital expenditure (capex), which had long been led by government spending, is now seeing renewed momentum from private companies.

If recent commentary from Larsen & Toubro (L&T) and the State Bank of India (SBI) is any indication, the country could be on the cusp of a revival in private sector investments. Both companies, considered bellwethers for India’s industrial and financial sectors, are witnessing early signs of a turnaround.

Following its September quarter results, SBI management indicated that private sector capex activity is now broad-based across multiple industries. The bank reported a robust corporate credit pipeline of ₹7 lakh crore, comprising both underutilised working capital and term loans under disbursement.

"The new projects being discussed are spread across both the public and private sectors, but predominantly private. This pipeline is very strong — part of it will materialise this year, with some spillover into the next," said C.S. Setty, Managing Director, State Bank of India.

Reflecting this optimism, SBI raised its FY26 credit growth guidance to 12–14%, from 12–13% earlier.

Meanwhile, Larsen & Toubro Ltd (L&T), India’s largest engineering and infrastructure company, has already flashed the first signs of a private capex recovery. The company’s infrastructure projects segment received domestic orders worth ₹27,400 crore in the September quarter — nearly 50% higher year-on-year. Domestic order inflows for the business crossed the ₹20,000 crore mark for the first time in five fiscal quarters.

According to Parameswaran Ramakrishnan, Vice President of Corporate Accounts and Investor Relations at L&T, private sector capital expenditure is being driven by increased investments in manufacturing, renewables, real estate, digital infrastructure, and power generation, even as public infrastructure spending continues steadily.

L&T now expects to exceed its earlier order inflow guidance of 10% for FY26, and has projected revenue growth of 15% for the year.

Data compiled by CNBC-TV18 from Bloomberg shows that private capital expenditure in India grew just 8.4% in FY25, reaching ₹5.1 lakh crore — the slowest pace in four years. Around 210 non-financial BSE500 companies (excluding PSUs) spent ₹4.7 lakh crore on capex in FY24, marking a 23% increase that year.

Despite the moderation, economists remain optimistic about India’s near-term growth prospects. The country’s GDP growth for FY26 is projected between 6.5% and 7%, supported by resilient consumption, a strong services sector, and steady investment momentum.

Also Read: Dalmia Bharat Sugar Q2 Results | Net profit dives 56% to ₹23 crore despite 7% revenue growth