Indian corporations are sitting on a massive cash pile reflecting a 35% increase in cash and cash equivalents (CCE) over the past two years. This growth comes as companies have limited capital expenditure (capex) post-COVID-19 choosing instead to optimize existing capacity utilization. According to the latest Economic Survey presented in Parliament Indian companies have seen a significant 35% rise in their cash reserves between September 2022 and September 2024. While corporate profits are at a 15-year high the report notes a lack of corresponding salary increases for employees. Among the top performers InterGlobe Aviation (IndiGo) Reliance Industries and Hindustan Aeronautics recorded the highest growth in cash reserves over the last two years. CCE Trends in Nifty 500 Companies The cash and cash equivalents of Nifty 500 companies grew from Rs 10.6 lakh crore in September 2022 to Rs 14.3 lakh crore in September 2024. The CCE metric on a company’s balance sheet reflects the value of cash and liquid assets that can be quickly converted into cash. Reliance Industries Tops List Among the companies with the highest cash balances Mukesh Ambani led Reliance Industries leads with Rs 2.15 lakh crore in CCE as of September 2024. This amounts to 15% of the total cash reserves held by Nifty 500 companies. Other top holders include: Larsen & Toubro Tata Motors TCS Wipro ONGC InterGlobe Aviation (IndiGo) Mahindra & Mahindra Infosys Hindustan Aeronautics. Interestingly the Adani Group despite being India’s third-largest industrial conglomerate does not feature in the top 10. Why Cash Reserves Have Increased Several factors have contributed to this growth in cash reserves. Companies capitalized on cost-cutting measures implemented during the COVID-19 period.  Firms refrained from aggressive capacity expansions focusing instead on brownfield projects while putting new greenfield projects on hold. Companies in the chemical power healthcare real estate automotive and FMCG sectors have seen the largest cash reserve growth.