PSUs Near ₹70 Lakh Cr Market Cap: SBI, LIC, NTPC Lead 2026 Rally
New Delhi, Feb 24, 2026: India's Public Sector Undertakings (PSUs) are on the cusp of a major milestone, with their collective market capitalisation approaching the ₹70 lakh crore mark in early 2026. Once viewed as underperformers, these state-run giants have become key drivers of wealth creation this year, fueled by strong profits, improved governance, and strategic reforms.
SBI Solidifies Dominance, Overtakes Private Rivals
State Bank of India (SBI) remains the undisputed leader among PSUs. In February 2026, SBI's market cap crossed ₹12 lakh crore, briefly making it India's fourth-largest listed company by valuation. This surge stems from record quarterly profits (including a high of over ₹21,000 crore in recent results), a cleaner balance sheet, and reduced credit costs, allowing it to surpass private peers like ICICI Bank in rankings at times.
Top 5 PSUs by Market Cap (as of mid-February 2026)
The "Lakh Crore Club" continues to be led by banking, energy, and defence sectors:
- State Bank of India (SBI): ~₹11-12 lakh crore (fluctuating around ₹10.9-12 lakh crore in recent reports, with surges to ₹12+ lakh crore)
- NTPC Ltd: ~₹3.6 lakh crore
- Oil & Natural Gas Corp. (ONGC): ~₹3.4-3.5 lakh crore
- Bharat Electronics Ltd (BEL): ~₹3.2 lakh crore
- Life Insurance Corp. of India (LIC): Positioned strongly in the top tier, though exact recent figures hover around higher valuations in broader lists
(Note: LIC's valuation has been reported variably but remains a heavyweight; defence and energy firms like BEL and NTPC show consistent strength.)
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Defence and Energy Lead the Re-Rating
Defence PSUs have experienced explosive growth due to the government's "Make in India" push and massive order books. Companies like Bharat Electronics (BEL) and Hindustan Aeronautics Ltd (HAL) have become institutional favorites, with multibagger returns in recent years.
In energy, NTPC and Power Grid benefit from India's green energy shift and rising power demand. PSU capital expenditure is projected to grow robustly, supporting resilience amid global uncertainties.
Dividend Powerhouses and Investor Appeal
For dividend-focused investors, firms like Coal India and ONGC stand out, often announcing generous payouts amid high commodity realizations. PSU stocks have shown strong resilience despite market volatility, with sectors like PSU banks delivering double-digit gains in 2026 so far.
The sector's combined market cap for listed PSUs stood at around ₹68-69 lakh crore in late January/early 2026 (per reports from sources like Moneycontrol and PSU analyses), nearing the ₹70 lakh crore threshold amid ongoing rallies.
Government Push: Asset Monetisation Pipeline 2.0
The government recently launched National Monetisation Pipeline 2.0 (NMP 2.0), targeting ₹16.72 lakh crore in asset monetisation from FY26 to FY30. This includes stake sales in subsidiaries, private investments of ~₹5.8 lakh crore, and potential GDP boost of ₹40 lakh crore over 5-10 years. Sectors span highways, railways, power, petroleum, and more, unlocking further value in PSUs.
As reforms deepen and earnings remain robust, India's state-run enterprises are no longer "slow-moving giants"—they're powering the next phase of market growth. Investors continue to bet on their resilience, dividends, and structural tailwinds.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Readers should conduct their own research before making any investment decisions.