PSU Stocks in India for 2027
- January 11, 2026
- Posted by: sachet
- Category: Best Stocks
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Public Sector Undertakings (PSUs) are the most essential drivers in India, playing a vital role in the country’s economic development. It also contributes to employment generation, infrastructure growth, and the overall well-being of society. PSU stocks in India have always been a favourite among investors seeking long-term growth and stability. The primary objective behind investing in PSU stocks is to serve and meet the public interest rather than pursue unnecessary profits. A PSU (Public Sector Undertaking) is a business organisation in which the GOI (Government of India) holds 51% of the stake.
What are PSU Stocks?
PSU stocks are the shares of a business entity owned and operated by government administrations. The government is the major stakeholder in these companies and contributes its best efforts to economic development. Recently, the top PSU stocks in India have regained investors’ interest, aided by their highest dividend payouts. Investing in the best PSU stocks in India provides an opportunity to invest across diversified sectors, including energy, banking, manufacturing, mining, telecommunications, defence, steel, and more. PSU stocks in India can create a safe and diversified investment portfolio. On a financial note, the performance of PSU companies varies across sectors.
Excessive support for the GOI helps these stocks sustain in market volatility and economic slowdowns. PSU companies play an essential role in employment generation, infrastructure development, and other social welfare in India. Investors must review the List of PSU Stocks before investing in the best PSU stocks in India to better understand the opportunities and long-term profitability.
PSU Sector in India: An Overview
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PSUs operate across diverse sectors like banking, energy, and infrastructure, which offer investors a chance to benefit from their steady performance and attractive dividends. PSUs are one of the major employers in India. It has been providing thousands of employment opportunities across all cities in India. Post-independence, when colonial rule was a hurdle to Indian Industry Policy, the Resolution brought a relaxation regarding the influence of public sector undertakings (PSUs).
Increasing people’s disposable income and government support for such companies motivate investors to invest in the best PSU stocks in India, and investors may take help from the list of PSU Stocks for choosing the top PSU stocks to invest in 2027.
PSU Stocks List By Market Capitalisation
Here is the list of the best PSU Stocks in India for 2027 by market capitalisation that investors may consider, including NTPC Limited, ONGC, Coal India, Power Grid Corporation, NHPC, BHEL, and REC & PFC.
| Stock Name | LTP (in ₹) | Market Capitalisation (in cr.) | 52-Week High (in ₹) | 52-Week Low (in ₹) |
| NTPC Limited | 320.80 | 3,11,263 | 414.40 | 315.55 |
| ONGC | 231.31 | 2,89,346 | 307.50 | 227.65 |
| Coal India | 425.20 | 2,59,821 | 491.25 | 369.60 |
| Power Grid Corporation | 261.70 | 2,43,862 | 324.95 | 250.00 |
| NHPC | 73.59 | 74,836 | 88.12 | 71.62 |
| BHEL | 411.15 | 1,43,461 | 446.50 | 229.54 |
| REC & PFC | 294.45 | 79,918 | 390.30 | 292.35 |
NTPC Ltd.
Founded: 1975
Headquarters: New Delhi, India
Market Capitalisation: ₹3,11,263 crore
NTPC, India’s largest integrated power utility with 91,030 MW of installed capacity (including 10,787 MW renewable via NTPC Green Energy), continues to deliver steady growth. Q1 FY27 consolidated net profit rose 13% YoY to ₹6,896 crore on revenue of ₹50,741 crore, backed by capacity additions and a ~2.8% dividend yield. This mix of thermal cash flows and renewable expansion keeps NTPC among the best PSU stocks in India for long-term investors.
ONGC – Energy Security Backbone
Founded: 1956
Headquarters: Vasant Kunj, Delhi
Market Capitalisation: ₹2,89,346 crore
ONGC, contributing around 70% of India’s domestic crude oil and gas output, delivered a standout Q1 FY27 with standalone net profit up 112% YoY to ₹17,034 crore on higher crude realisations. However, this gain reflects volatile global oil prices rather than steady performance — consolidated profit actually fell 43% as subsidiary HPCL posted a loss. With a ~3.1% dividend yield and low valuation, ONGC remains one of the best PSU stocks in India for income-focused investors, though its oil-price sensitivity makes it one of the more volatile PSU stocks to watch.
Coal India
Founded: 1975
Headquarters: Kolkata, West Bengal
Market Capitalisation: ₹2,59,821 crore
Coal India continues to supply the majority of India’s coal requirements for power, steel, and industrial growth. In Q1 FY27, revenue rose 8% to ₹46,255 crore, though production fell 7.5% and margin pressure kept net profit nearly flat at ₹8,852 crore. The board declared a ₹5.50 interim dividend, supporting a yield of around 6.3%. Despite the production dip, Coal India’s strong payouts and essential role in base-load power keep it among the best PSU stocks in India and a preferred PSU stock to invest in for income-focused investors.
Power Grid Corporation
Founded: 1989
Headquarters: Gurugram, Haryana
Market Capitalisation: ₹2,43,862 crores
Power Grid, the backbone of India’s electricity transmission network, delivers stable earnings through its regulated tariff model. In Q1 FY27, revenue rose 2.7% to ₹11,497 crore, though net profit dipped slightly to ₹3,598 crore due to timing on asset capitalisation. With capex rising to support grid expansion and renewable integration, plus a ~3.4% dividend yield, Power Grid’s low business risk and predictable payouts keep it among the best PSU stocks in India and a safe PSU stock to invest in for long-term investors.
NHPC – Hydropower Growth Opportunity
Founded: 1975
Headquarters: Faridabad, Haryana
Market Capitalisation: ₹74,836 crores
NHPC, India’s largest hydropower producer with 9,333 MW installed and 9,204 MW under construction (including solar), posted Q1 FY27 revenue up 18.5% to ₹3,808 crore and net profit up nearly 3% to ₹1,096 crore. With a ₹15,000 crore FY27 capex plan and expansion into pumped storage, NHPC offers strong renewable energy exposure, though execution risk and rising finance costs remain watchpoints. It’s among the best PSU stocks in India for diversification and a top PSU stock to invest in for long-term clean energy exposure.
BHEL – Industrial & Infrastructure Revival Play
Founded: 1956
Headquarters: New Delhi, India
Market Capitalisation: ₹1,43,461 crores
BHEL benefits directly from India’s infrastructure expansion and power sector push. It delivered a landmark Q1 FY27 turnaround, swinging to a ₹377 crore profit from a ₹456 crore loss, as revenue jumped 40% to ₹7,698 crore. With order inflows strong and its order book at ₹2.6 lakh crore, BHEL is a genuine turnaround story among the best PSU stocks in India — though at ~44x FY27 earnings, it’s a top PSU stock to invest in only for those comfortable paying up for continued execution.
REC & PFC – Power Financing Specialists
Founded: 1969
Headquarters: New Delhi
Market Capitalisation: ₹79,918 crore
REC and PFC, India’s top power-sector financiers, are set to merge — PFC’s board approved absorbing REC at an 88:100 share ratio, creating a combined entity with a loan book over ₹11 lakh crore. Both delivered strong Q1 FY27 results: REC’s profit rose to ₹4,149 crore with near-zero stressed assets (0.11%), while PFC posted ₹4,745 crore with 0.15% impaired assets. With attractive dividends (REC ₹4.25/share, PFC ₹3.90/share) and rising renewable financing, both remain among the best PSU stocks for 2027, though the pending merger makes them a PSU stock to invest in with an eye on how terms finalize.
PSU Index Stocks
Here is a list of PSU Index Stocks, such as Bharat Dynamics, Bharat Electronics, Bharat Heavy Electricals, Bharat Petroleum Corp, Coal India Ltd, Cochin Shipyard, Container Corporation of India, Engineers India Ltd, GAIL (India), and General Insurance Corp. of India.
| Stocks | Closing Price (₹) | Change (%) |
| Bharat Dynamics Ltd | 1,102.20 | -1.15 |
| Bharat Electronics Ltd | 385.95 | 0.12 |
| Bharat Heavy Electricals Ltd | 410.85 | -0.25 |
| Bharat Petroleum Corp | 300.65 | -0.53 |
| Coal India Ltd | 425.20 | 0.64 |
| Container Corporation of India | 448.75 | -0.28 |
Factors to Consider Before Investing in the Best PSU Stocks in India
Before investing in the best PSU stocks in India, investors must consider key factors to evaluate their financial performance for long-term growth and stability.
Some of the factors that should be considered before investing in the PSU Stocks
- Government Policies: Investors should analyse current and future policies that could impact the company in the long term. Constant changes in government policies can significantly affect a company’s profitability and operational efficiency, so investors should consider these policies before investing in the best PSU stocks in India.
- Financial Outlook: The Company’s financials play a crucial role in evaluating the company’s performance. The company’s strong revenue growth and financials suggest it can sustain operations and generate profits, leading investors to consider it before investing in the best PSU stocks in India.
- Valuation: Proper valuation helps determine the stock’s value and assess whether it is overpriced or underpriced. Investing in PSU stocks also depends on the stock’s valuation, evaluating whether it is reasonably priced relative to earnings and book value.
- Dividend History: To maintain financial stability, assess the company’s dividend criteria and history, which leads investors to preferentially invest in the best PSU stocks in India, as the consistent dividend provides a steady income stream and indicates financial stability.
- Management Quality: Management of public sector enterprises is dependent mainly on the government. Investors shall select the top PSU stocks in India with robust leadership. To evaluate management quality, consider researching members’ experiences and strategies for managing business operations. Effective management quality of the firm might help it sustain in the competitive business environment.
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Best PSU Bank Stocks
The best PSU Bank stocks offer a unique combination of stability and consistent returns, making them an excellent choice for long-term investors. With their strong government backing, regular payouts, and presence in diverse sectors, they lead to investing in the top PSU stocks in India.
Why You Should Invest in the Best PSU Bank Stocks in India
- PSU banks receive financial backing and capital infusions from the government, especially during times of economic distress or financial instability, which makes it beneficial for investors to invest in the best PSU bank stocks in India.
- PSU Bank stocks have large market shares and government ownership. PSU banks tend to exhibit less volatility than their private-sector counterparts.
- With the government’s emphasis on infrastructure, the best PSU bank stocks in India are well-positioned to benefit from rising credit demand linked to large-scale projects in construction, transportation, and public works.
- Recent measures have focused on reducing non-performing assets (NPAs), with several public sector banks (PSBs) showing progress in lowering their NPAs.
Here is a list of the Best PSU Bank Stocks in India, such as Bank of Baroda, PNB, Canara Bank, Union Bank, IDBI Bank, Indian Bank, Indian Overseas Bank, Bank of India, Bank of Maharashtra, and UCO Bank.
| Stock Name | CMP | Market Capitalisation (in ₹) | 3 Year Share Price CAGR (in%) |
| SBI | 958.80 | 8,87,907 | 17.0 |
| Bank of Baroda | 228.25 | 1,17,855 | 2.2 |
| Punjab National Bank | 113.48 | 1,29,296 | 12.3 |
| Canara Bank | 119.23 | 1,09,664 | 16.6 |
| Union Bank | 170.68 | 1,31,145 | 17.2 |
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Benefits of Investing in the Best PSU Stocks in India
Investors must also know the benefits of investing in top PSU stocks in India, which helps them identify the right PSU Listed Companies to invest in. We will now discuss the benefits of investing in the best PSU stocks in India.
Below are the benefits of investing in PSU stocks:
- Undervalued Potential: Many PSU stocks in India are traded at lower valuations than their private-sector counterparts. For value investors, this presents an opportunity to unlock significant returns as the market gradually recognises their true worth. It is beneficial to invest in the best PSU stocks in India for long-term growth and stability.
- Government Backing & Stability: With the government as a majority stakeholder, PSUs offer high stability, reducing the risk of bankruptcy and making them ideal for risk-averse investors. This benefits investors seeking the best PSU stocks in India.
- Cyclical Fluctuations: PSU stocks are mainly involved in diversified sectors, such as energy, infrastructure, and defence, which are beneficial for robust economic growth and development. They also follow the economic cycle, allowing investors to maintain stability during cyclical fluctuations and capitalise on economic fluctuations.
- Social Responsibility: Investing in PSU stocks that support nation-building efforts, infrastructure development, and social welfare. For socially conscious investors, this adds an ethical dimension to their portfolios and benefits those willing to invest in the best PSU stocks in India.
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Best Dividend Paying PSU Stocks
The best dividend-paying PSU stocks are attractive to investors seeking a steady income stream. Primarily, companies issue stock that shares a portion of their profits with shareholders, offering stability and regular returns.
Why You Should Invest in the Best Dividend-Paying PSU Stocks
- Dividend-paying PSU stocks generally provide a consistent source of income, making them ideal for retirees and income-focused investors.
- Companies with a history of paying dividends are often financially stable and are mostly considered less volatile.
- Investing in the best dividend-paying stocks can also lead to compounding growth over time, and, beyond dividends, these dividend-paying PSU stocks may offer long-term capital appreciation, which enhances overall returns.
- Dividends can protect against inflation by providing a regular income that may increase over time.
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Below, we discuss the names of the Best dividend paying PSU stocks in India.
| Company | CMP (in ₹) | Dividend Yield (in%) | Market Capitalisation (in cr.) |
| REC | 294.45 | 6.11 | 79,918 |
| GAIL | 170.82 | 3.20 | 1,13,092 |
| Power Finance Corporation | 326.50 | 5.62 | 1,08,953 |
| NMDC | 77.00 | 4.52 | 68,066 |
| Power Grid | 261.70 | 3.43 | 2,43,862 |
| RITES | 193.77 | 3.70 | 9,427 |
| NALCO | 344.50 | 3.30 | 63,915 |
| Union Bank | 170.68 | 2.91 | 1,31,145 |
| BPCL | 300.65 | 5.71 | 1,31,023 |
| Bank of Baroda | 228.25 | 3.73 | 1,17,855 |
Risks of Investing in the Best PSU Stocks in India
There are some risks associated with the best PSU stocks in India. Below, we will discuss the risks involved in investing in the PSU stocks, such as
- Limited Growth in Some Sectors: Diversified stocks are involved in the PSU sector, and there is a risk of limited growth in some industries that are not performing well. Investors should consider high-growth sectors before investing in the best PSU stocks in India.
- Regulatory risks: Changes in government policies or interventions can affect operations, which is the primary driver of regulatory risk, and investors should consider this before investing in the best PSU stocks in India.
- Private Volatility: Disinvestment uncertainty creates price volatility as government plans to reduce ownership stakes often face delays and opposition. Meanwhile, PSUs must balance profit maximisation with welfare mandates, which can entail sacrificing commercial interests for policy objectives, posing risks when investing in the best PSU stocks in India for long-term growth and stability.
- Risk of Underperformance: Some companies, such as BHEL and Steel Authority of India (SAIL) have faced challenges such as outdated technology, inefficiencies, and inability to innovate at the pace of the private sector, so this can result in decreasing the stock prices of the best PSU stocks in India, or may create the expectations of the slow growth, and investor expectations.
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PSU Listed Companies
The Indian government classifies PSU listed companies into three categories based on their revenue, profits, and economic importance. Classification based on financial performance is as follows:
| Category | Eligibility Criteria | Examples |
| Maharatna PSU companies | ₹5,000 crore net profit for three years, ₹25,000 crore net worth | ONGC, NTPC, Indian Oil Corporation |
| Navratna PSU companies | High Financial autonomy, ₹3,000 crore net profit for three years | Bharat Electronics, Hindustan Aeronautics |
| Miniratna PSU companies | Smaller PSUs with profit-making records | Airports Authority of India, IRCTC |
Here is the list of PSU Listed Companies in India, such as the State Bank of India, NTPC, Bharat Electronics Limited, Hindustan Aeronautics, Oil & Natural Gas Corporation, Coal India, Indian Oil Corporation, and many more.
| Name of the Stocks | CMP (in ₹) | Market Capitalisation (in crores) | P/E Ratio (in%) | P/B Ratio (in%) |
| State Bank of India | 958.80 | 8,87,907 | 9.90 | 1.51 |
| NTPC | 320.80 | 3,11,263 | 10.99 | 1.53 |
| Bharat Electronics Limited | 385.95 | 2,82,157 | 45.90 | 11.76 |
| Hindustan Aeronautics | 4,700.00 | 3,16,932 | 34.00 | 7.72 |
| Oil & Natural Gas Corporation | 231.31 | 2,89,346 | 6.46 | 0.78 |
| Coal India | 425.20 | 2,59,821 | 8.33 | 2.18 |
| Power Grid Corporation | 261.70 | 2,43,862 | 15.34 | 2.43 |
| Indian Oil Corporation | 134.04 | 1,88,095 | 5.26 | 0.86 |
| Bank of Baroda | 228.25 | 1,17,855 | 6.41 | 0.70 |
How can you invest in the Best PSU Stocks in India with Univest?
Here are the steps involved when investing in the best PSU stocks with Univest
- Download the Univest app from the Play Store or App Store.
- Register and complete KYC using your mobile number, PAN, and basic details.
- Activate a Univest plan (free trial or paid) to access the best PSU stock recommendations.
- Link your existing Demat & trading account or open a new one through the app.
- Explore PSU stock ideas using Univest research, screeners, and expert recommendations.
- Select the PSU stocks based on your investment goal (short-term or long-term).
- Place a buy order through the linked trading account (delivery mode for investing).
- Track your investment using portfolio insights, alerts, and updates on the Univest app.
- Review and rebalance periodically based on market trends and research updates.
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Conclusion
PSU stocks offer a unique combination of stability and consistent returns, making them an excellent choice for long-term investors. With their government backing, regular dividend payouts, and presence in diverse sectors. PSU stocks play a vital role in building a resilient investment portfolio. Investing in the best PSU stocks in India may be diversified into finance, insurance, telecom, energy, power, or coal mining. PSUs have been leading their respective sectors. While investors may feel confused about investing in the best PSU stocks in India, given their government ownership and consistency, they must not forget that they may be easily affected by changes in government policies.
FAQs
What do you mean by PSU stocks?
PSU means Public Sector Undertaking. PSU stocks are shares of companies majority-owned (at least 51%) by the Indian government. These companies are established to provide essential goods and services to the public while also contributing to the country’s economic development.
Which are the best PSU stocks for 2027 in India?
The largest and best PSU stocks for 2027, including some of the best by market capitalisation, such as State Bank of India, Hindustan Aeronautics, NTPC, Oil and Natural Gas Corporation, and Bharat Electronics Ltd.
What are the advantages of investing in the best PSU stocks in India?
Investing in PSU stocks that support nation-building efforts, infrastructure development, and social welfare. For socially conscious investors, this adds an ethical dimension to their portfolios and benefits those willing to invest in the best PSU stocks in India. With the government as a majority stakeholder, PSUs offer high stability, reducing the risk of bankruptcy and making them ideal for risk-averse investors. This benefits investors seeking the best PSU stocks in India.
What are the factors that should be considered before investing in the best PSU stocks?
Proper valuation helps determine the stock’s value and assess whether it is overpriced or underpriced. Investing in PSU stocks also depends on the stock’s valuation, evaluating whether it is reasonably priced relative to earnings and book value. TheCompany’s financials play a crucial role in evaluating the company’s performance.
Should you invest in PSU stocks?
India has various PSUs, each operating in a different sector. From telecom to mining, finance to energy, PSUs cater to almost every sector of the economy. Therefore, it is essential to conduct thorough research before investing in the best PSU stocks in India. Moreover, investors should stay alert about market developments and review their investment decisions.
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