Spending on corporate social responsibility (CSR) by Central Public Sector Enterprises (CPSEs) increased significantly in FY25, hitting a record high of ₹6,437 crore. The Public Enterprises Survey for FY25 shows that 183 CPSEs spent 31.1% more on CSR than they had the year before. Additionally, spending became more concentrated. The top 10 public sector businesses contributed 59.5% of all CSR expenditures in FY25, up from 56.7% in FY24, demonstrating the increasing dominance of big businesses in social spending.
Top CSR Contributors in FY25
With ₹929.08 crore spent on CSR initiatives, Oil and Natural Gas Corporation (ONGC) was the biggest contributor. Indian Oil Corporation (IOC) with ₹538.04 crore, NTPC Ltd with ₹362.94 crore, Power Grid Corporation of India Ltd (PGCIL) with ₹360.19 crore, and Bharat Petroleum Corporation Ltd (BPCL) with ₹358.14 crore came next. These five companies collectively made up a large portion of all CSR spending.
Companies, including CPSEs, must spend at least 2% of their average net profit from the previous three fiscal years under CSR regulations that have been in effect since April 1, 2014, if they meet any of the following requirements: net worth of ₹500 crore or more, turnover of ₹1,000 crore or more, or net profit of ₹5 crore or above.
Sector-wise CSR Allocation
CSR priorities remained dominated by social welfare. Spending on healthcare, sanitation, poverty alleviation, and hunger eradication made up the greatest portion of all CSR expenditures in FY25 (48%), up from 40% in FY24. With a 25% share, education and skill development came next, indicating consistent investment in human resources.
CSR Growth Amid Profit Decline
The growth in CSR expenditure came at a period when overall profitability of CPSEs decreased. From ₹3.22 trillion in FY24 to ₹2.91 trillion in FY25, the net profit of running CPSEs decreased by 9.6% year over year. While mining and exploration witnessed a 36% reduction in total profit, the manufacturing, processing, and power generating industry saw a sharp 39.3% decline.
On the other hand, CPSEs in the agricultural and service sectors performed better, with net profits rising by 18% and 26.1%, respectively, in FY25.
Employment Trends in CPSEs
Data on employment showed a conflicting pattern. The total workforce across CPSEs expanded modestly by 1.6 per cent in FY25. Nonetheless, there was a 3.7% decrease in regular employees and a 7.7% increase in contractual and casual employment, suggesting a change in the makeup of the workforce.
In FY25, the number of female employees decreased by 1.2% to 76,685, representing 9.8% of all CPSE employment. 32.4% of women in the workforce were in executive or managerial roles. 58.9% belonged to the workers’ category, while about 87% worked at the managerial level.
Despite pressure to maximize profits, the data demonstrates that CPSEs increased their social investment, with a particular emphasis on public health, education, and welfare. Two major factors influencing the public sector landscape in FY25 are the shift in employment patterns and the growing concentration of CSR investment among large firms.
Clear Cut CSR Desk
New Delhi, UPDATED: Dec 30, 2025 04:20 IST
Written By: Nidhi Chandrikapure
