Looking beyond the individual companies, when viewed together, the performance of India's PSUs is even more promising. The total market capitalisation for all PSUs rose by about ₹57 lakh crore between March 2020 and June 2025, witnessing an impressive 36% annualised growth in earnings during the given period.
The profits of the sector increased from approximately ₹1.2 lakh crore in fiscal year 2020 to nearly ₹5.3 lakh crore in fiscal year 25, which is more than four times the profits in just five years. This is largely attributed to the strong performance in defence, banking, power and energy segments, while there were varying results of PSUs owing to the fluctuations in the international oil price.
Now, the total contribution of PSUs to the total market capitalization of India is estimated to be around 13 to 15 per cent. Therefore, the PSUs have become a very important part of India’s equity market. Earlier, India’s PSU sector was considered to be a very slow and inefficient sector and hence had not attracted much investor interest.
However, in recent times, there has been a revaluation of the PSU sector of India owing to improved standards of corporate governance, disinvestment and the government emphasis on infrastructure, defense indigenization, and renewable energy, all of which have played into the strengths of the PSU sector.
