Indian PSUs' profits grew faster than private firms

Indian Public Sector Undertakings (PSUs) are experiencing a strong resurgence, with profits growing significantly faster than private sector firms since the pandemic. PSU banks have been key drivers of this growth, despite a recent earnings slowdown. PSUs saw a 36% annual profit growth from 2020 to 2025, fueled by reforms and policy support, though overall profits dipped slightly in 2025. BEL and HAL are expected to continue growing, supported by large order books and government initiatives. While valuations have cooled, the sector's fundamentals remain strong, with a focus on BFSI, O&G, and metals. Government spending and "Make-in-India" initiatives are expected to further boost PSU performance in the coming years.