India Inc continues to remain flush with funds. With their businesses doing well, companies are sitting on a cash pile estimated at Rs 14.19 lakh crore at the end of September 2025. While cash and bank balances are more or less similar to those at the end of the March 2025 quarter, they are nearly 11.2% higher than the levels in the year-ago period. The bulk of the cash of about 83% is with 429 top companies, excluding banks and financials.
The high cash levels can be attributed to improving financial performance and a big jump in other income. Companies have reported fairly strong numbers for the September quarter with net sales for a universe of 3,596 companies (excluding banks and financials) increasing by a strong 12.7% year-on-year. With expenses being reined in, operating profit margins have expanded.
The other income for this sample of companies jumped 90% year-on-year in the September quarter. Over the past year or so, many companies have used their cash flows to repay loans and de-leverage their businesses. In FY25, for instance, more than 300 companies turned debt-free. Moreover, the cash on their books had doubled by the end of the year.