PSU Stocks Announce Q4 FY26 Dividends; Coal India, BHEL and Mazagon Dock Lead the List

Public sector companies such as Coal India, REC, Chennai Petroleum, Mazagon Dock and BHEL continue to reward shareholders with steady dividends along with solid earnings and stock performance. The Government of India, which is the majority shareholder in many PSUs, depends on these payouts as an important source of non-tax revenue.

In FY26, the government collected ₹78,438 crore in dividends from Central Public Sector Enterprises, exceeding the budget target of ₹71,000 crore. The coal and power sectors contributed significantly to this strong collection.

During Q4FY26, several PSU companies announced final dividends along with their results. Many of these stocks also delivered double-digit returns in 2026 and offer dividend yields between 3% and 5%.

PSU Companies That Announced Q4FY26 Dividends

Key companies that declared final dividends include:

• Coal India Limited
• REC Limited
• Chennai Petroleum Corporation Limited
• National Aluminium Company Limited
• Mazagon Dock Shipbuilders Limited
• Garden Reach Shipbuilders & Engineers Limited
• Bharat Heavy Electricals Limited
• Punjab National Bank
• Union Bank of India
• Bank of Maharashtra
• Indian Bank

Dividend and Stock Performance

Coal India Leads with High Dividend Yield

Coal India announced a ₹5.25 final dividend for Q4FY26, taking the full-year dividend to ₹26.75 per share.

• Net profit rose 11% YoY to ₹10,839 crore
• Revenue increased 5.8% YoY to ₹46,490 crore

This makes it one of the highest dividend-yielding PSU stocks.

Read More: BSE Q4FY26 Results Out: Profit Jumps 61% YoY to ₹797 Crore, Announces ₹10 Dividend 

REC Shows Stable Growth Despite Q4 Dip

REC declared a ₹1.55 final dividend, taking FY26 payout to ₹18.55 per share.

• Q4 profit fell 21% YoY to ₹3,375 crore
• FY26 profit grew 2.6% YoY to ₹16,308 crore
• Loan book crossed ₹6 lakh crore, supported by renewable energy lending.

Chennai Petroleum’s Massive Turnaround

Chennai Petroleum delivered a strong recovery in FY26:

• Q4 profit surged 249% YoY to ₹1,422 crore
• FY26 profit jumped 1,659% YoY to ₹3,062 crore
• Total FY26 dividend: ₹62 per share.

National Aluminium Declares Dividend Despite Weak Quarter

• Revenue fell 5% YoY to ₹5,013 crore
• Net profit dropped 17% YoY to ₹1,718 crore
  Still, the company announced ₹10.5 per share FY26 dividend.

Defence Shipbuilders Report Strong Growth

Mazagon Dock

• Profit up 109% YoY to ₹679 crore
• FY26 dividend: ₹18.12/share

Garden Reach Shipbuilders

• Revenue up 29% YoY
• FY26 dividend: ₹19.60/share

PSU Banks Continue Dividend Payouts

PSU banks also rewarded shareholders:

• PNB: ₹3/share
• Union Bank: ₹5/share
• Bank of Maharashtra: ₹2.2/share FY26
• Indian Bank: ₹18.25/share (record date June 10, 2026)

BHEL Delivers Strong Stock Gains

BHEL declared ₹1.4 dividend per share and delivered over 40% stock gains in 2026.

Conclusion

PSU companies continue to offer a strong mix of dividends, earnings growth, and government support. With many stocks delivering double-digit returns and steady payouts, PSUs remain attractive for income-focused investors.

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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. 

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