Best PSU Stocks in India in February 2026: SBI, SAIL, and More Based on 5Y CAGR!

Government estimates indicate total PSU capital expenditure at around ₹4.84 lakh crore for FY27, marking an 11.5% rise over FY26. This strengthens visibility for large public sector players across power, infrastructure, energy, and industrial manufacturing. Alongside this, Budget expectations of higher dividends from PSU-linked institutions also highlight improving profitability across several state-owned entities.

Against this backdrop, here are some PSU stocks that have stood out in February 2026 based on 5-year CAGR, along with key fundamentals like market cap, quarterly EPS, and RoE.

Best PSU Stocks in India in February 2026 Based on 5Y CAGR

Note: The above stocks are selected and sorted as of February 6 2026, based on the above-average 1-month returns. 

Overview of the Best PSU Stocks in February 2026

State Bank of India (SBI)

SBI has raised its growth outlook across key segments. Home loans are expected to grow around 15%, while Xpress Credit is targeting double-digit growth. The bank also has a strong corporate loan pipeline of nearly ₹7 lakh crore, and is exploring capital market funding and M&A opportunities to support future expansion.

NTPC

NTPC plans to add 5,200 MW of capacity in the current financial year, with 2,600 MW already commissioned. It remains on track to meet its target, supported by upcoming projects including major additions from Khavda and the Ayana platform. Looking ahead, NTPC Green is targeting 8 GW capacity addition in FY27 and FY28, showing a strong long-term growth pipeline.

ONGC

ONGC expects oil production of 19.8 MMT this year and 21 MMT next year. Gas production is projected at 20 BCM this year and 21.5 BCM next year. The company is also counting on the Daman Upside project to boost gas output, along with gains from new wells and operational improvements.

Power Grid Corporation of India (POWERGRID)

POWERGRID sees major growth opportunities in energy storage, with expectations of 47 GW BESS and 36 GW pump hydro storage by 2032. For FY26, it has planned capex of around ₹28,000 crore, including large allocations for TBCB and RTM projects. The company is also aiming to capitalise nearly ₹20,000 crore worth of projects by the end of FY26.

Steel Authority of India (SAIL)

SAIL expects demand to improve after the monsoon and festive season period. The company is also hopeful of better steel prices from mid-November, with momentum expected to continue into Q4. It plans to liquidate at least 50% of its sellable steel inventory during FY26–27, supported by an improving domestic market.

Best PSU Stocks in India in February 2026 Based on Net Profit Margin

Conclusion

PSU stocks remain a compelling space for investors looking for a mix of scale, stability, and long-term growth triggers. Companies like SBI, NTPC, ONGC, and Power Grid are backed by strong operating visibility, while SAIL offers a more cyclical opportunity linked to steel demand and pricing recovery.

That said, investors should not rely on returns alone. Tracking factors such as profitability trends, debt levels, sector cycles, and future guidance remains important before taking exposure, especially as PSU performance can change quickly with macro and policy shifts.

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.