New Delhi, July 8 -- Corporate India's recent balance sheet numbers confirm that companies are prioritizing financial investments over capex amid uncertainty. Even as profits recover, they are investing in financial assets at twice the rate at which they invest in factories and machinery.

The shift underscores corporate caution as subdued domestic demand, moderate capacity utilisation, and geopolitical volatility keep a much-awaited broader private investment cycle on hold.

India Inc.'s net fixed assets grew 7% year-on-year in FY26, while capital work-in-progress, measuring projects under execution, fell 6%, Mint's analysis of data from 3,561 non-financial companies, sourced from the Centre for Monitoring Indian Economy (CMIE), showed. ...