New Delhi, 26 June (IANS). The market capitalization of India’s public sector units (PSU) has increased by Rs 57 lakh crore in the last five years to Rs 69 lakh crore in June 2025, which was Rs 12 lakh crore in March 2020.
According to the report of Motilal Oswal Financial Services Limited, the income of PSU companies during FY 20 to FY 25 has increased from CAGR of 36 percent, which is higher than private companies. At the same time, during this period, 32 percent CAGR has increased in the BSE PSU index.
The report stated that the profits continue to increase despite the recession in FY 25. The findings showed that long-term recovery story is based on the balance sheet cleaning, policy compatibility and field-specific structural changes.
According to the report, “PSU’s stake in the total marketcap due to rally and good profits has now increased to 15.3 percent, which was 10.1 percent in FY 22.”
Along with the marketcap, the profits of PSU companies have also increased. This has increased to Rs 5.3 lakh crore in FY 25, which was Rs 1.2 lakh crore in FY 20.
According to the report, “BFSI’s contribution in FY 25 has been 38 percent of PSU profits, which was only 7 percent in FY 20.”
At the same time, between the financial year 20-25, the profits of government capital goods companies have increased by 28 percent CAGR. The reason for this is to increase the share of PSU in Defense and Infra Orders.
The report further stated that 53 percent of the increased profits of PSUs in the coming two years are expected to come from the BFSI segment. The loss -making PSU’s share is now only 1 percent in the total profit pool, which is less than 45 percent of the FY15.
According to the report, structural reforms are a major reason for changes in PSU companies.
-IANS
ABS/