The PSU sector is showing strong momentum in FY26, with the BSE PSU Index gaining 6.1%, slightly outperforming the Sensex’s 5.8% rise. Out of 62 listed PSU stocks on the BSE, 47 have delivered positive returns, and 31 have posted double-digit gains, highlighting growing investor confidence..
Over the past 5 years, the BSE PSU Index has soared nearly 250%, driven by improved financials, efficient execution, and supportive government reforms. Many PSUs also offer dividend yields higher than bank FDs, appealing to income-focused investors. In this article, we will take a look at the top government stocks in India for investments in October 2025.
| Name | Market Cap (₹ Cr) | PB Ratio | 5Y CAGR (%) | 3Y Historical Dividend Growth (%) |
| Hindustan Aeronautics Ltd | 3,21,005.31 | 9.18 | 65.59 | 25.99 |
| Bharat Electronics Ltd | 2,95,644.00 | 14.79 | 66.83 | 16.96 |
| Cochin Shipyard Ltd | 49,601.25 | 8.89 | 64.60 | 5.20 |
| Gujarat Mineral Development Corporation Ltd | 19,951.32 | 3.11 | 71.69 | 32.93 |
HAL has a robust order book of ₹1.8 lakh crore as of FY25, offering 6.2x revenue visibility. With the Cabinet Committee on Security approving the procurement of 97 additional LCA Tejas Mk-1A aircraft worth ₹67,000 crore, HAL’s order book is expected to rise to ₹2.5 lakh crore. Key projects like ALH, LUH, Su-30 upgrades, and RD-33 engines are in advanced stages, while future programs like Tejas Mk II, AMCA, TEDBF, and IMRH could generate ₹4.5 trillion in orders over the next decade, backed by ongoing production capacity expansion.
Key Metrics:
As of September 17, 2025, Bharat Electronics Ltd (BEL) has recorded year-to-date (YTD) FY26 order inflows of ₹11,300 crore, including fresh orders worth ₹712 crore across IT infrastructure, cyber security, ESM systems, blockchain solutions, and communication equipment. The company’s order backlog stands at ₹78,600 crore, equivalent to 3.3x its FY25 revenue, ensuring strong revenue visibility. The order pipeline remains healthy, with expected wins in areas like missile systems, QRSAM, aircraft, submarines, and warships. Management has guided for over ₹27,000 crore in order inflows for FY26.
Key Metrics:
The company holds a strong total order book of ₹21,100 crore, which includes ₹19,600 crore in shipbuilding and ₹1,500 crore in ship repair. The company is currently working on 75 vessels at various stages of execution.
This robust pipeline ensures steady revenue visibility and operational momentum.
Key Metrics:
GMDC shares have been rallying due to renewed investor interest following China’s easing of rare earth magnet export restrictions to India. GMDC share price has surged 50% in a month.
India's government is also actively pursuing critical mineral supply deals, including FTA talks with Peru, and plans for a rare earth processing plant in Gujara. This have added to the stock’s momentum. Rare earths are vital for EVs, electronics, and defence, boosting GMDC’s strategic relevance.
Key Metrics:
Read more: Best Pharma Stocks in October 2025 - Neuland Labs, Wockhardt & More – 5yr CAGR Basis.
In summary, PSU stocks like HAL, BEL, Cochin Shipyard, and GMDC offer strong growth potential, backed by robust order books, rising revenues, and attractive dividends. To capitalise on these promising PSU picks in October 2025, ensure your investments are ready by opening or maintaining an active demat account for seamless trading and portfolio management.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Sep 26, 2025, 1:56 PM IST
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