PSU stocks surge, generating ₹57 lakh crore wealth
India's public sector undertakings (PSUs) have bounced back in a big way, with their market value shooting up from ₹12 lakh crore in 2020 to ₹69 lakh crore by mid-2025.
Their share of the stock market is now 15.3%, up from 10% just a few years ago—reversing years of slow growth.
PSUs are outpacing private companies
PSUs aren't just growing—they're outpacing private companies, posting 36% yearly profit growth since 2020.
Loss-making PSUs are now rare, dropping from nearly half to just 1%.
Sectors like banking and defense are leading the charge, and with valuations at attractive levels, investors are paying attention again.
What's driving this turnaround?
Stronger balance sheets, government policy pushes, and demand in sectors like defense and infrastructure have powered this turnaround.
Even with a small dip expected this year, steady profit growth is likely through at least 2027.