Equity Commitments Rise 25% as Overseas FDI Slides in September

Indian companies increased their equity commitments abroad in September, even as total overseas foreign direct investment fell 14 percent on an annual basis. Data released by the Reserve Bank of India on Monday showed overseas FDI at $4.34 billion, compared with $5.04 billion in September last year.

Overseas FDI was also lower than the $6.87 billion recorded in August 2026.

Strong equity, weaker debt and guarantees

The clearest bright spot was equity. Equity commitments by Indian companies rose roughly 25 percent year-on-year to $3.26 billion in September 2026, up from $2.59 billion in the same period of the previous year.

Other categories told a different story. Loan commitments dropped to $54.91 million on an annual basis from $98.11 million, although they increased from $47.35 million in August. Guarantees fell even more sharply, to $52.82 million from $1.47 billion a year earlier, and also declined from $2.29 billion in August.

For context, overseas FDI refers to investments made by Indian companies to launch business operations in foreign markets.

Largest deals of the month

Sun Pharma Laboratories dominated equity outflows with $1.99 billion. White Oak Investment Management contributed $146 million, while Nac Global Private Limited recorded $48 million in outflows.

In lending, Highway Constructions moved $80 million to its UK subsidiary. Paharpur Cooling Towers, meanwhile, issued a $103 million guarantee to its Singapore subsidiary during the month.