Many people in India are now searching for safer and more reliable companies to invest in, and that is exactly why PSU stocks are back in the spotlight. These government backed companies have shown strong growth recently, and investors are curious to know which ones are truly the best PSU stocks in India for 2025.
If you have the same question, in this blog we will explore which PSUs are performing well, why they are becoming popular again, and how you can pick the right ones for your portfolio.
Public Sector Undertaking companies continue to lead the market in 2025, backed by strong earnings, higher investor confidence, and steady government support. The list below highlights the best PSU stocks in India 2025, based on their marketcap and active performance across key sectors like banking, energy, defence, and power.
| Top 10 PSU Stocks in India | Sector | Market Cap (Cr) | Price (LTP) |
|---|---|---|---|
| 1. State Bank of India | Banking and Finance | ₹8,78,201 | ₹948.10 |
| 2. NTPC | Power and Energy | ₹3,13,154 | ₹323.30 |
| 3. Oil and Natural Gas Corporation | Oil and Gas | ₹3,01,990 | ₹242.30 |
| 4. Hindustan Aeronautics | Defence and Aerospace | ₹3,00,280 | ₹4,490.00 |
| 5. Bharat Electronics | Defence Electronics | ₹2,95,425 | ₹407.15 |
| 6. Power Grid Corporation | Power Transmission | ₹2,49,535 | ₹269.65 |
| 7. Coal India | Mining and Resources | ₹2,30,979 Cr | ₹377.05 |
| 8. Indian Oil Corporation | Oil and Refining | ₹2,31,800 Cr | ₹162.60 |
| 9. Bharat Petroleum | Oil and Refining | ₹1,55,405 | ₹355.55 |
| 10. IRFC | Railway Finance | ₹1,49,961 | ₹114.80 |
Here is a closer look at the best government stocks in India 2025 that have earned their place on this list. These companies stand out because of their strong fundamentals, market leadership, and consistent performance across different sectors.
State Bank of India continues to be one of the most trusted and dominant PSU banks in India. With its massive customer base, strong loan book, and growing digital banking network, SBI plays a key role in India’s financial system.
The bank has shown stable financial performance in recent years with steady growth in profits and improving asset quality. Its wide presence and government backing make it a preferred choice for investors looking at strong public sector undertaking stocks.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 11.05 | 55.84 | 269.09 |
NTPC is India’s largest power generation company and remains a strong performer in the energy sector. With steady revenue, long term power purchase agreements, and rising investment in renewable energy, NTPC continues to attract long term investors.
The company is expanding rapidly in solar and green energy Projects, making it one of the top PSU stocks in India for stable and predictable returns.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 12.48 | 86.59 | 225.50 |
Oil and Natural Gas Corporation is India’s biggest oil and gas explorer. With strong government support and rising global demand for crude, ONGC continues to be a key PSU stock for investors who want exposure to the energy market.
The company has a strong asset base, improving financial strength, and long term production projects that support stable earnings.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 8.29 | 71.00 | 169.60 |
HAL is one of the fastest growing defence PSU companies in India. With major orders for aircraft, helicopters, and defence systems, the company has seen strong growth in both revenue and profits.
India’s rising defence spending and export opportunities make HAL a strong pick for long term investors looking at the defence sector.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 1.82 | 223.90 | 960.26 |
BEL is a leading defence electronics company supplying radars, communication systems, and technology to the Indian armed forces. The company’s strong order book and consistent financial performance make it one of the best PSU stocks in India for long term stability.
Its growing focus on new technologies and export markets adds to its future potential.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 29.05 | 284.58 | 958.67 |
Power Grid is India’s backbone in power transmission, operating a large network across states. Its stable business model and predictable cash flow make it attractive for low risk investors.
The company is also expanding in smart grid and green energy transmission projects.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 18.22 | 63.31 | 146.34 |
Coal India is the world’s largest coal producer and remains a key player in India’s electricity supply chain. Even as renewable energy grows, coal continues to be essential for India, keeping Coal India’s demand strong.
The company is also popular among dividend focused investors.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 10.26 | 67.17 | 182.27 |
IOC is a major refining and fuel distribution company with a massive presence across India. It plays a crucial role in retail fuel supply and is expanding into cleaner energy alternatives.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 20.73 | 108.39 | 79.26 |
BPCL is well known for its wide fuel distribution network and refining strength. With expansion in petrochemicals and government backed reforms, BPCL remains an important PSU stock in India’s energy sector.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 20.73 | 108.39 | 79.26 |
IRFC funds India’s railway infrastructure and has grown rapidly thanks to government expansion plans. Its stable business model and long term agreements make it attractive for low risk investors.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 34.29 | 230.58 | 360.68 |
Public sector undertaking companies play different roles in India’s economy, and each sector contributes to growth in its own way. Below is a clearer breakdown of the main PSU sectors, along with examples.
1. Banking and Financial PSUs: This sector includes government backed banks and financial institutions that handle loans, deposits, digital banking, and national-level financial programs.
Examples: SBI, Bank of Baroda, PNB
2. Power and Energy PSUs: Power PSUs manage electricity generation, transmission, and supply across the country. They keep homes, industries, and public services running.
Examples: NTPC, Power Grid, NHPC
3. Oil and Gas PSUs: These companies handle the exploration of oil and natural gas, refining of fuel, and distribution of petroleum products. They play a major role in India’s energy security and supply chain.
Examples: ONGC, Indian Oil Corporation, BPCL
4. Defence and Aerospace PSUs: Defence PSUs build aircraft, helicopters, radar systems, missiles, and other high technology equipment for the armed forces. India’s focus on self-made defence equipment has boosted this sector.
Examples: HAL, BEL, BEML
5. Mining and Resources PSUs: These PSUs extract coal, iron ore, and other minerals that support power plants, steel makers, and construction industries. They are central to India’s industrial progress.
Examples: Coal India, NMDC, NLC India
6. Railway and Infrastructure PSUs: Railway PSUs help finance, construct, and upgrade India’s massive railway network. They support major national projects like new routes, modern stations, and freight corridors.
Examples: IRFC, RVNL, IRCON
PSU stocks are shares of companies that are owned and controlled by the Government of India. These businesses work in important areas of the economy such as banking, power, oil and gas, defence, and railways. When investors buy PSU stocks, they become part owners of these companies and benefit when the company grows, pays dividends, or increases in value.
PSU companies operate with government support, which gives them stability and long term importance in the Indian market. Many of these organisations handle essential national services, so they often remain steady even during uncertain times. This is one reason why public sector undertaking stocks attract both new and experienced investors who are looking for strong and reliable options.
Types of PSUs in India
PSUs are divided into four main categories based on their performance, profits, and national importance. Here is a simple breakdown.
Investing in top PSU stocks is simple, and anyone can start with a few easy steps. If you are new to the market, Lakshmishree makes the whole process smoother with a fast account opening process and a user friendly trading platform.
Here are the most important things that help you pick the right PSU stocks for your personal goals.
PSU stocks continue to hold a strong place in the Indian market, supported by government backing, steady earnings, and long term national projects. These companies play an important role in sectors like banking, energy, defence, and infrastructure, making them dependable options for many investors. In 2025, the focus on development, digital growth, and self-reliance has further strengthened the outlook for several leading PSUs.
The best PSU stock to buy includes strong and reliable companies such as SBI, NTPC, ONGC, HAL, BEL, Power Grid, Coal India, Indian Oil Corporation, Bharat Petroleum, and IRFC. These public sector undertaking stocks hold leading positions in their sectors and continue to attract investors due to their stability, growth potential, and government support.
PSU stocks can be good for long term investment because they operate in essential sectors and receive strong government support. Many of the best PSU stocks in India provide steady dividends and stable growth over time.
Coal India, ONGC, and IOC are known for their high dividend payouts. These PSU stocks are popular among income-focused investors who want regular returns along with long term stability.
PSU stocks are generally considered safer than many private companies because they have government backing and operate in essential industries. However, investors should still review financial performance, sector trends, and long term plans before investing.
Beginners may prefer stable and low risk PSU stocks such as Power Grid, SBI, or NTPC because they offer predictability and strong fundamentals. These companies make it easier for new investors to understand how PSU stocks behave in the market.
Disclaimer: This article is intended for educational purposes only. Please note that the data related to the mentioned companies may change over time. The securities referenced are provided as examples and should not be considered as recommendations.
