The company met its CSR compliance requirement by transferring the unspent amount into a designated account
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NEW DELHI (India CSR): Bharti Hexacom Limited transferred Rs. 8.2 crore of its Corporate Social Responsibility (CSR) obligation to a designated Unspent CSR Account during FY 2025–26, marking a 64% increase over the Rs. 5 crore carried forward in the previous financial year. The increase came as the telecom company nearly doubled its annual CSR obligation and expanded its commitment to long-term education and leadership development projects.
Bharti Hexacom’s statutory CSR obligation rose to Rs. 23.9 crore in FY 2025–26 from Rs. 12.4 crore in FY 2024–25. This represents an annual increase of nearly 93%. The company incurred Rs. 15.7 crore in CSR expenditure during the year. The remaining Rs. 8.2 crore was transferred to the “Bharti Hexacom Limited Unspent CSR Account” for an approved ongoing project.
The transfer was made within the prescribed legal period. It does not represent a statutory default.
Understanding the CSR Numbers
Bharti Hexacom’s Annual Report presents the CSR obligation as fully accounted for at Rs. 23.9 crore. However, the notes to the financial statements provide a clearer division.
Of the total obligation:
- ₹15.7 crore was incurred as CSR expenditure.
- ₹8.2 crore was transferred to the Unspent CSR Account.
- No amount was transferred to a Schedule VII fund.
- No administrative overhead was reported.
- No expenditure was incurred on impact assessment.
The unspent amount formed around 34.3% of the company’s total CSR obligation for FY 2025–26. In the previous year, Bharti Hexacom had a CSR obligation of Rs. 12.4 crore. It incurred expenditure of Rs.7.4 crore and transferred Rs. 5 crore to the Unspent CSR Account.
The previous year’s unspent component was about 40.3% of the annual obligation.
This means the absolute unspent amount increased in FY 2025–26. However, its share of the total obligation declined by approximately six percentage points.
Two-Year CSR Spending Trend
| CSR Indicator | FY 2024–25 | FY 2025–26 | Change |
|---|---|---|---|
| Statutory CSR obligation | ₹12.4 crore | ₹23.9 crore | 92.7% increase |
| Expenditure incurred | ₹7.4 crore | ₹15.7 crore | 112.2% increase |
| Amount transferred to Unspent CSR Account | ₹5 crore | ₹8.2 crore | 64% increase |
| Unspent share of annual obligation | 40.3% | 34.3% | 6 percentage-point decline |
| Actual expenditure as share of obligation | 59.7% | 65.7% | 6 percentage-point improvement |
The figures reveal a mixed but important trend. The company’s unspent CSR amount has increased in absolute terms. At the same time, its CSR expenditure has grown at a faster rate than its CSR obligation. Actual expenditure more than doubled. Its share of the annual obligation also improved.
Why Did the Unspent Amount Increase?
The increase is connected to a large multi-year institutional project. Bharti Hexacom has committed Rs. 50 crore towards campus infrastructure and youth leadership development at the School of Ultimate Leadership Foundation, or SOUL.
The institution is being developed near GIFT City in Gandhinagar, Gujarat. It aims to prepare future leaders through short, medium and long-term programmes. The commitment will be deployed over four financial years.
For FY 2025–26, Rs. 12.5 crore was linked to the SOUL campus infrastructure project. Of this amount, Rs. 8.2 crore was transferred to the Unspent CSR Account. The project remained under construction at the end of the financial year. The Annual Report therefore links the unspent amount to the implementation schedule of this ongoing capital project.
This is different from an unallocated CSR balance. The amount has already been connected to an approved project. Its use has merely moved to subsequent financial years.
Company’s CSR Obligation Nearly Doubles to ₹23.9 Crore During Financial Year 2025–26 Alone
Compliance, But Not Immediate Deployment
Under Section 135(6) of the Companies Act, unspent CSR funds relating to an ongoing project must be transferred to a designated Unspent CSR Account within 30 days from the end of the financial year. The amount must then be used for the approved project within three financial years. Bharti Hexacom stated that it transferred Rs. 8.2 crore to the designated account on April 24, 2026. The transfer allowed the company to meet the applicable CSR compliance requirement. It also preserved the funds for the ongoing SOUL project.
Yet, there is an important distinction between financial compliance and social deployment. The statutory obligation was fully provided for. But Rs. 8.2 crore had not translated into completed project expenditure by March 31, 2026.
For communities, the timing of deployment matters. An amount placed in an unspent account has been protected for CSR, but its social value will emerge only when project activities are completed and beneficiaries begin to experience the intended outcomes.
Previous Unspent Amount Fully Utilised
Bharti Hexacom’s record also provides evidence of follow-through. The company transferred Rs. 5 crore to its Unspent CSR Account for FY 2024–25. This entire amount was utilised during FY 2025–26 for the Bharti Airtel Scholarship Program.
No balance from FY 2024–25 remained unspent at the end of the reporting period. The Rs. 5 crore supported scholarships for students enrolled in undergraduate and integrated technology-based engineering programmes at institutions ranked among India’s top 50 engineering colleges under the National Institutional Ranking Framework.
During FY 2025–26, Bharti Hexacom supported 310 scholars. Girls accounted for 19% of them. The scholarships covered tuition fees, hostel expenses and mess charges. The utilisation of the previous year’s balance suggests that the company’s unspent CSR account is operating as a timing mechanism for multi-year programmes rather than becoming a pool of repeatedly delayed funds.
Previous Year’s ₹5 Crore Unspent Amount Fully Supports Engineering Scholarships During FY 2025–26
The Psychology Behind the CSR Trend
Bharti Hexacom’s CSR spending pattern reflects a shift from annual grants towards larger and longer institutional commitments. The company appears willing to lock funds into projects that require several years to complete. This indicates a preference for durable assets and structured education programmes.
Three behavioural signals emerge from the two-year trend.
1. Preference for Predictable Programmes
The company’s CSR portfolio is concentrated around education. It supports Satya Bharti Schools, engineering scholarships and leadership education. These are structured programmes with defined institutions and implementation systems.
This lowers programme uncertainty. It also allows the company to maintain a consistent CSR identity.
2. Movement Towards Institution Building
The Rs. 50 crore SOUL commitment marks a move beyond annual beneficiary support. Scholarships produce direct and immediate outcomes. School programmes provide continuing benefits. Campus infrastructure, however, represents a long-term institutional investment.
Such projects require approvals, construction schedules and milestone-based payments. This naturally increases the possibility that part of the annual allocation will remain unspent at year-end.
3. Compliance Discipline With Deferred Impact
The company transferred the unspent amount within the prescribed period. It also utilised the entire previous year’s carried-forward amount. This indicates procedural discipline. However, the rising absolute balance also places greater responsibility on the company. It will need to monitor construction progress, fund utilisation and eventual educational outcomes.
The effectiveness of the strategy will depend on how quickly the Rs. 8.2 crore moves from the designated account into verified project execution.
Education Remains the Central Theme
Bharti Hexacom continued to place education at the centre of its CSR strategy. The company supported 19 Satya Bharti Schools across four states. These schools benefited more than 9,600 students. Around half were girls. Its Business Responsibility and Sustainability Report stated that 82% of the school beneficiaries belonged to vulnerable and marginalised groups.
The scholarship programme supported 310 engineering students. The SOUL investment added a leadership-development dimension to the portfolio. More than 60 employees also participated in volunteering activities. These included plantation drives, sports events, Hindi Diwas programmes and Children’s Day activities.
CSR Obligation Rises With Profitability
Bharti Hexacom’s higher CSR obligation reflects its improved profit base. The company reported an average net profit of Rs. 1,190.6 crore for the calculation required under Section 135 of the Companies Act. Two per cent of this amount resulted in a CSR obligation of Rs. 23.9 crore. The sharp increase from the previous year suggests that CSR will become a more significant part of the company’s social investment decisions.
As the obligation expands, project selection and execution capacity will become increasingly important. A larger CSR budget creates the potential for greater impact. It also increases the risk of delayed deployment if programme pipelines and implementation systems do not grow at the same pace.
Read full report: Bharti Hexacom CSR Report 2025–26 – India CSR
No Mandatory Impact Assessment
Bharti Hexacom reported that mandatory impact assessment provisions were not applicable to its FY 2025–26 CSR projects. It therefore incurred no impact assessment expenditure during the year. The company disclosed beneficiary numbers and programme reach through its Annual Report and BRSR. However, the SOUL project will eventually require deeper outcome reporting.
Infrastructure completion alone cannot establish social impact. Future disclosures could examine:
- Number and profile of learners
- Participation of underserved groups
- Programme completion rates
- Leadership outcomes
- Public-interest projects led by graduates
- Long-term institutional sustainability
Such indicators would help stakeholders distinguish between asset creation and actual social value.
What the Trend Signals
Bharti Hexacom’s CSR performance cannot be assessed only through the Rs. 8.2 crore unspent figure.
The wider trend shows that:
- Its CSR obligation increased by nearly 93%.
- Its actual expenditure increased by more than 112%.
- The unspent amount increased by 64%.
- The unspent share of the obligation declined.
- The previous year’s unspent amount was fully utilised.
- The current balance is tied to an approved multi-year project.
The pattern is therefore not one of simple under-spending. It reflects a rapidly expanding CSR budget and a transition towards long-duration institutional projects. The company has demonstrated compliance and previous-year utilisation. The next test will be timely execution and transparent reporting.
The Road Ahead
Bharti Hexacom now carries a clear responsibility into FY 2026–27.
The Rs. 8.2 crore lying in the Unspent CSR Account must move according to the approved SOUL project schedule. The company will need to ensure that construction milestones are met and funds are used for their intended purpose. It must also continue balancing large institutional investments with programmes that deliver immediate benefits.
Scholarships and rural schools offer visible and direct outcomes. Infrastructure projects take longer. A balanced portfolio can protect both short-term community needs and long-term development goals. Bharti Hexacom’s CSR trend shows growing financial commitment. It also shows stronger actual spending. The rise in unspent CSR is significant, but it is supported by a defined multi-year project and a record of utilising the previous year’s balance.
The real measure will come later. It will depend on whether committed funds create a functioning institution, reach deserving learners and generate outcomes that justify the scale of the investment.
