By Admin 
The central government’s capital expenses (CAPEX) have increased with a tremendous rise in the month of March. According to a report, in March 2025, the government’s cost has increased by 68 per cent on a year-on-year basis, which is 3 per cent higher than the revised estimate of FY 2024-25. This indicates that the Government of India is investing rapidly in infrastructure and defense sector. Due to this, companies related to road, railway and defense are expected to get big benefits.
these companies will get big benefit
According to the report of Jefferies, companies like HAL, Siemens, Kei and L∓ T will directly benefit from this expenditure. Siemens has received a locomotive order of Rs 26,300 crore from Indian Railways, which is expected to increase both the company’s income and margin. HAL’s earnings have been estimated to have an annual growth of 19 per cent (EPS CAGR) in the next five years. At the same time, L∓ T and Kei are also likely to have a stable and strong growth from this high capex.
March did Kamal
Talking about the entire financial year 2024-25, the road capex increased by 8 percent. Although it had a decline of 1 per cent in the month of April, the record 73 per cent increase in March improved the figure of the year. It states that the government has spent fiercely on infrastructure in March.
Railway speed in April
Capex spending in the railway sector declined by 4 per cent in March, but in April it saw an increase of 4 per cent. Talking about the whole year, the railway’s capex remained according to the revised target of FY 2024-25. This means that the government has maintained the railway sector in its priority.
Tremendous boom in defense capex
There has also been a huge jump in the expenditure in the defense sector. Defense capex increased by 25 per cent in March, while in April this increase reached 122 per cent. This is much higher than the target, which was just 13 percent. After the Prime Minister appreciated the ‘Made in India’ weapons recently used in the Indo-Pakistan struggle, it is clear that the government is now putting more emphasis on domestic defense building.
states getting a large stake
Report states that in the last four years, there has been a steady increase in capex to the states. In FY 2020-21, this share was only 5 percent, which increased to 17 percent in FY 2024-25. Only in March 2025, the states were transferred to 33,700 crore, which is 125 percent of the revised estimate. States increased from 105 per cent year after year in March.
FY26 budget so far only 15 percent of uses
For FY26, the government has allocated 44,600 crore capes to the Department of Economic Affairs, but so far only 15 percent has been spent. This means that there is a possibility of more expenditure in the coming months, which can see further faster in the sectors concerned.
Keep an eye on infrastructure and defense stocks
It is clear from this report that the focus of the central government is now on the development of road, railway and defense sector. For investors, it is an indication that they keep an eye on companies like Siemens, HAL, L∓ T and Kei, as their stocks can perform strong in the coming time.
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