Top PSU Stocks for the Next 10 Years (2025–2035): Long-Term Gems Backed by the Government

Investing in Public Sector Undertaking (PSU) stocks often feels like a safe bet—especially when the government is actively reforming, monetizing, and modernizing these enterprises. While PSUs were once seen as sluggish and inefficient, things have changed. In recent years, many have outperformed private sector peers, delivered solid dividends, and played crucial roles in India’s economic growth.

If you're a long-term investor looking for PSU stocks that can generate consistent returns from 2025 to 2035, this list is curated for growth, stability, and dividend income.

✅ Why Invest in PSU Stocks?

Backed by Government of India (GoI) – high trust & stability
Key players in core sectors like energy, defence, infra, banking
Attractive valuations + regular dividends
Direct beneficiaries of government reforms and spending

🔝 Top PSU Stocks for Long-Term Investment (2025–2035)

1. NTPC Ltd (National Thermal Power Corporation)

Sector: Power Generation
Market Cap (2025): ₹3.5+ lakh crore
Dividend Yield: ~4%
Why Buy: Largest power producer in India, moving into renewable energy and green hydrogen. Strong cash flow and dividend track record.

2. BEL (Bharat Electronics Limited)

Sector: Defence & Aerospace Electronics
Market Cap (2025): ₹1.4+ lakh crore
Why Buy: Major supplier to DRDO and ISRO, with a growing order book. Expanding into AI-based defence tech and cyber security.

3. REC Ltd (Rural Electrification Corporation)

Sector: Power Finance
Market Cap (2025): ₹1.1+ lakh crore
Dividend Yield: ~5%
Why Buy: Funds power and infrastructure projects in rural India. Strong financials, high ROE, and regular dividends.

4. Coal India Ltd

Sector: Coal & Energy
Market Cap (2025): ₹2+ lakh crore
Dividend Yield: 7–10%
Why Buy: World's largest coal producer, crucial for India’s power needs. Strong dividend history and zero debt.

5. ONGC (Oil and Natural Gas Corporation)

Sector: Oil & Gas Exploration
Market Cap (2025): ₹2.4+ lakh crore
Why Buy: India’s largest oil producer. Focus on offshore energy, exploration, and green hydrogen initiatives.

6. IRFC (Indian Railway Finance Corporation)

Sector: Railway Finance
Why Buy: Backbone of railway infrastructure finance in India. Key beneficiary of ₹10 lakh crore rail capex plan. Strong profit growth and low risk.

7. BHEL (Bharat Heavy Electricals Limited)

Sector: Power Equipment Manufacturing
Why Buy: A revival candidate. Plays a big role in infrastructure, nuclear, and defence production. Benefiting from Make in India momentum.

8. GAIL (India) Ltd

Sector: Gas Distribution
Why Buy: Leading gas infrastructure company. Rising focus on LNG, PNG, CNG, and green hydrogen. Expanding across India.

📊 Comparison Table of Top PSU Stocks

Stock	Sector	Dividend Yield	Key Growth Driver
NTPC	Power	~4%	Renewable & Green Hydrogen
BEL	Defence	~1.5%	Defence orders & AI tech
REC	Finance	~5%	Power infra funding
Coal India	Coal	~7–10%	Energy security
ONGC	Oil & Gas	~4%	Exploration + Green energy
IRFC	Rail Finance	~4%	Railway infra funding
BHEL	Capital Goods	~2%	Infra, Defence, Nuclear
GAIL	Gas	~3%	Clean fuel & infra expansion

📌 Risks to Keep in Mind

Policy changes or privatization drives
Cyclical nature of energy and infra sectors
Operational inefficiencies in some PSUs
Global commodity price volatility

📝 Final Thoughts: Are PSU Stocks Good for 10 Years?

Yes — with the right selection, PSU stocks can offer stability, consistent income, and long-term capital growth. The key is to focus on PSUs aligned with India’s national priorities: clean energy, infrastructure, defence, and logistics.

Pro Tip: Don’t blindly buy all PSUs. Stick to those with clean balance sheets, future-oriented growth, and strong leadership.

👉 Want help in building a diversified PSU + private sector portfolio? Drop your queries in the comments or contact us directly!