Central public sector enterprises (CPSEs) and other state-run agencies—namely the railways and the National Highways Authority of India (NHAI)—reported an aggregate capex growth of 26% in the first quarter of the current financial year.

Their capex achievement in Q1FY27 stood at Rs 2.1 lakh crore, representing 25% of the annual target, compared to Rs 1.67 lakh crore, or 21.24% of the target, achieved in the year-ago period.

Sixty-three CPSEs and government agencies with annual capex targets of Rs 100 crore and above have set a combined investment target of Rs 8.43 lakh crore for FY27. In FY26, these state-run entities invested Rs 8.64 lakh crore, reaching 110% of their Rs 7.85 lakh crore target.

Monthly data shows that these entities’ capex reached Rs 81,108 crore in April 2026, up from Rs 49,781 crore in the same month last year. In May, capex was Rs 63,553 crore compared to Rs 55,239 crore a year prior, while June 2026 recorded Rs 65,470 crore against Rs 62,425 crore in June 2025.

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The Railway Board was the top public sector investor in Q1FY27, increasing its capex by 56.9% year-on-year to Rs 97,160 crore. The National Highways Authority of India ranked second, achieving 27% capex growth as it moved from Rs 35,523 crore in Q1FY26 to Rs 45,130 crore in Q1FY27.

For context, the FY27 capex for the Railways and NHAI is estimated to be Rs 4.52 lakh crore, which is equivalent to 54% of the total state-run agencies’ capex target for FY27. These two entities are almost fully funded through the union budget and account for 37% of the Centre’s overall FY27 capex estimate of Rs 12.2 lakh crore.

Meanwhile, NTPC Limited grew its capex by 19.4% to Rs 9,925 crore in Q1FY27, up from Rs 8,312 crore in the year-ago quarter.

However, the Oil And Natural Gas Corporation saw a 16.4% decline in capex, dropping from Rs 8,262 crore in Q1FY26 to Rs 6,907 crore in Q1FY27. Overall, petroleum sector undertakings, which fund investments through their own internal accruals and borrowings, are estimated to invest an aggregate of Rs 1.34 lakh crore in FY27, which is nearly identical to their FY26 spending.

The Power Grid Corporation recorded a modest 4.7% increase in capex, moving from Rs 6,095 crore in Q1FY26 to Rs 6,380 crore in Q1FY27.

The Centre is pursuing economic growth revival led by public capex across the union government, states, and public enterprises. Supporting this momentum, the Centre’s own capital expenditure surged by 13.5% during April–May 2026.