Indian Govt Stocks: When discussing growth, the majority of investors pay attention to private sector names. However, some government-owned businesses have been discreetly changing the rules. These aren’t the typical drowsy PSUs that people prefer to ignore. For once, they have a favorable policy environment, strong balance sheets, and structural tailwinds on their side.

The outdated notion that “public sector equals slow and inefficient” is no longer valid. Some of these stocks are actually poised for growth that may be comparable to that of their private counterparts.

Here are some Indian government stocks that can give high returns in 2026:

1. State Bank of India:

State Bank of India is India’s oldest public sector bank. According to reports, SBI has the highest customer base with 520 M and over 90 M users on their digital platform YONO.  SBI holds over 22% of deposits and 20% of advances in India, while handling 62% of the government’s financial transactions. In the last three years, it delivered 19% revenue growth, 30% profit growth, and 17% ROE, with NPAs dropping to record lows.

Going forward, SBI expects faster credit growth led by retail loans, government capex, green energy projects, and aims to maintain strong margins at 3% in FY26.

2. Bharat Electronics:

Bharat Electronics (BEL) is India’s leading defence electronics supplier, providing radars, missile systems, communication networks, electronic warfare, and naval upgrades, while also expanding into homeland security, metro, space, medical electronics, and cyber security. Over the past three years, it has delivered 16% revenue CAGR, 30% profit CAGR, and 26% ROE.

For FY26, BEL guides for 15% revenue growth, 27% margins, and order inflows above ₹270 bn, excluding the massive ₹300 bn QRSAM order. With Project Kusha (~₹200 bn), strong defence demand, export targets, annual ₹10 bn capex, and heavy R&D spend on AI, quantum, robotics, and 5G/6G, BEL is positioned for rapid growth and long-term expansion.

Also Read: PF Account Transfer Rules Simplified: Here’s What’s New

3. Coal India:

Coal India is not just a big company in India, but also this is largest coal producer in the domestic and international sector. This government company produces around 40% of India’s primary energy and 72% of the country’s electricity from their 310 mines, which are all over 8 states. With seven subsidiaries and strong financials, it has delivered 7% revenue CAGR, 27% profit CAGR, and 49% ROE over the past three years, while production hit a record 781 MT in FY25.

This company is planning to hit 1 billion tonnes of coal production by FY29. It is said that the company is not just focusing on coal; they are also diversified into gasification, synthetic natural gas projects, and critical minerals to reduce import dependency and tap clean energy opportunities.

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