Spending became mandatory from 1 April 2014, under Section 135 of the Companies Act, 2013. Companies have to spend 2 per cent of their average profits on CSR.
The number of companies reporting such spending surged 20 per cent, the fastest in a decade, to 2,013 from 1,678, Crisil’s CSR Yearbook 2026 said.
In fiscal 2025, 1,364 companies spent 2 per cent or more of their average profits on CSR, compared with 1,124 in fiscal 2024, the report said.
The number of companies allocating between 2 per cent and 2.99 per cent of average profits to CSR rose 26 per cent, while those spending in the 2.00-2.10 per cent range increased 25 per cent.
Companies spending between 1.90 per cent and 1.99 per cent of average profits were up a sharp 42 per cent. Together, these trends point to a strong concentration of spending around the statutory benchmark, Crisil said.
Education and healthcare continued to dominate corporate social investments.
Education and skill development attracted Rs 9,182 crore, accounting for nearly 41 per cent of total CSR expenditure and drawing participation from 1,519 companies. Healthcare and sanitation received Rs 5,386 crore, or almost 24 per cent of total spending, from 915 companies.
Environment, rural development and sports emerged as the fastest-growing themes. Spending on environmental initiatives nearly quadrupled to Rs 2,371 crore, while rural development spending rose to Rs 1,632 crore. Expenditure on sports nearly tripled to Rs 753 crore, with the number of participating companies doubling year on year, Crisil report said.
The sharp rise in some thematic categories should, however, be viewed in the context of improved disclosures. In fiscal 2024, nearly Rs 9,900 crore of CSR expenditure was reported without an activitywise break-up, limiting comparability with fiscal 2025 data, it said.
Banking, financial services and insurance (BFSI) remained the largest contributor, with CSR expenditure of Rs 5,066 crore. Manufacturing followed at Rs 4,530 crore and the energy sector at Rs 3,067 crore. Together, these sectors accounted for 56 per cent of total CSR spending.
At the state level, Maharashtra continued to lead with CSR expenditure of Rs 11,356 crore, followed by Delhi and Karnataka. Spending growth was broad-based across major states, although the top 10 states still accounted for about 95 per cent of total CSR expenditure.
Aspirational districts, however, continued to receive a relatively small share of funding. In fiscal 2025, 373 companies reported CSR expenditure in these districts, accounting for only about 10 per cent of total CSR spending.
More than half of the companies analysed undertook CSR activities directly through in-house execution. At the same time, the use of implementing agencies increased, Crisil said.
“The growing emphasis on areas such as environment and rural development signals a more purposeful and holistic approach to social impact. This exhibits an encouraging shift from viewing CSR as a regulatory requirement to embracing it as a vehicle for creating long-term societal value. As India moves towards Viksit Bharat, the collective commitment of corporate India can play an important role in advancing inclusive and sustainable development,” Amish Mehta, Managing Director and CEO, Crisil said in a statement.
“Education and healthcare continue to account for nearly two thirds of corporate social investments, while increased allocations towards environment and sports are broadening the thematic mix. The geographic spread of spending has widened, and more companies are partnering with implementing agencies. At the same time, the concentration of spending around the statutory 2 per cent threshold and the limited share directed towards aspirational districts remain monitorable trends,” Maya Vengurlekar, Chief Operating Officer, Crisil Foundation, said.
