Shareholder Returns · Intermediate · Pro filter
Reinvestment rate: what it means and how to read it
Capital spending as a share of EBITDA: how much operating profit goes back into the business.
What is Reinvestment rate?
Capital spending as a share of EBITDA: how much operating profit goes back into the business.
A worked example
EBITDA of ₹1,000 Cr and capital spending of ₹600 Cr is a 60% reinvestment rate. Good if the new assets earn well, wasteful if they do not.
Why does Reinvestment rate matter?
Growth needs investment; this shows how much is going in.
How do you read Reinvestment rate?
Read it with incremental returns to see whether the investment pays off.
Neither high nor low is good by itself; it depends on the business.
What is a typical Reinvestment rate in India today?
The median across the 3505 listed companies that report it, as of 12 Oct 2026. Half sit above each figure and half below.
By company size
Median
Large Cap · 70 companies32.6%
Mid Cap · 116 companies35.7%
Small Cap · 3319 companies30.9%
By industry
Median, largest industries first
Pharmaceuticals · 16540.5%
Computers - Software & Consulting · 528.5%
Refineries & Marketing · 823.1%
Power Generation · 2799.7%
Heavy Electrical Equipment · 4128.0%
Auto Components & Equipments · 10645.4%
Cement & Cement Products · 3057.4%
Civil Construction · 10117.7%
Aerospace & Defense · 2926.7%
Iron & Steel · 1245.5%
Compare a company with its own industry before the whole market. Every industry, and each company's rank within it, is in the screener.