Government initiatives such as Make in India, increased capital expenditure, and the push for self-reliance are creating significant opportunities.
By expanding capacity, strengthening execution capabilities, and entering high-growth segments, these companies aim to secure larger order books and improve long-term earnings.
Here are three PSU stocks that are expanding.
#1 NTPC
NTPC Ltd is India’s largest integrated power utility, operating under the Ministry of Power. Beyond maintaining its position as the bedrock of India's baseload power supply, NTPC is executing one of the most aggressive energy transition strategies among state-owned utilities.
The NTPC Group currently has over 34 GW of capacity under construction, comprising 16.5 GW of coal-based capacity, about 2.6 GW of hydro capacity, and 15 GW of renewable energy capacity, providing a strong foundation for near to medium-term growth.
The company is focusing on expanding storage capacities through BESS, pump storage projects, long-duration energy storage technologies like CO2 storage and Vanadium Redox Flow batteries to support grid stability and renewable integration.
On the thermal side, NTPC has completed the trial operation of Patratu Stage 1 Unit 2 during Q1 FY27 and expects the third unit to be commissioned within the current fiscal year.
In the renewables segment, the company plans to add approximately 8 GW of capacity. Alongside capacity additions, work has commenced at the Pudimadaka green hydrogen hub to develop green methanol and sustainable aviation fuel, supporting its long-term diversification into emerging energy value chains.
It is also progressing on coal gasification initiatives, which have the potential to support continuous utilization of gas assets using domestic resources.
Over the long term, nuclear energy will remain an important pillar of NTPC’s growth strategy through projects being developed under ASHVINI, as well as other standalone opportunities.
The company reported revenues of ₹49687 crore for Q4FY26, down from ₹49,833 crore a year earlier. The company reported net profit of ₹16,234 crore against ₹4,968 crore.
Overall, NTPC's long-term strategy is aligned towards strengthening India's energy resilience through expansion across coal, renewables, storage, nuclear and domestic energy value chains, while continuing to provide reliable, affordable, and sustainable power to the country.
How has NTPC stock performed recently?
The NTPC stock has dropped by more than 3% over the past month.
The stock touched its 52-week high of ₹414.40 on 27 April 2026 and its 52-week low of ₹315.55 on 9 December 2025.
#2 Rail Vikas Nigam (RVNL)
Rail Vikas Nigam is a Navratna CPSE under the Ministry of Railways, serving as a primary execution arm for rail infrastructure projects across India. It operates on a turnkey model—handling everything from project conceptualisation, design, and estimation to tender execution and commissioning.
RVNL has shifted from receiving purely nomination-based railway projects to open, competitive market bidding. This is another PSU major with large orders and significant expansion plans.
The BharatNet project is a ₹13236 crore initiative to provide high-speed broadband connectivity in rural and remote areas. As per the management, the project execution momentum has improved significantly, and work is now progressing at a good pace across project locations. The management expects strong revenue and profit margins from this project in the current financial year.
Another important project is Rishikesh Karnaprayag Rail project at a cost of ₹37,000 crore. The 125-km project has achieved 74% overall progress, with around 96% tunnel excavation complete. The target for completion is by December 2029.
Another important project is the Vande Bharat sleeper train set with a 35-year maintenance arrangement being executed by the company’s SPV Kinet Railway Solutions. The management is hopeful that first prototype training set is targeted for launch in December 2026.
Overall, RVNL continues to demonstrate disciplined execution and stable operational performance, supported by a strong and diversified order book. The management says it’s actively encouraging opportunities in diversified infrastructure and emerging business areas.
How has RVNL stock performed recently?
The RVNL stock has remained flat over the past month.
The stock touched its 52-week high of ₹400.90 on 29 December 2025 and its 52-week low of ₹221.75 on 11 June 2026.
#3 GRSE
Garden Reach Shipbuilders & Engineers (GRSE) is one of India's leading defence shipbuilders under the Ministry of Defence.
Headquartered in Kolkata, the company designs and builds warships, patrol vessels, survey ships, ferries, and other specialized vessels primarily for the Indian Navy and Coast Guard.
The management recently articulated its expansion plans.
The company's current shipbuilding capacity is for the construction of 28 platforms. With the ongoing expansion and modernization projects within its premises, this capacity will be increased to 32 ships by the end of the calendar year 2026.
The company's expansion projects include the creation of two brownfield shipbuilding facilities in West Bengal and two greenfield shipbuilding facilities, one in West Bengal and one in Gujarat.
According to management, with the government-promulgated revitalization package for shipbuilding, valued at around ₹69,725 crore, and the demand for platforms already aggregated by the Ministry of Shipping, they expect the commercial shipbuilding segment to gather momentum.
The company’s current order book stands at ₹15324 crore.
On the financial front, GRSE's revenues grew 38% over the last financial year and profit after tax rose 42% to ₹748 crore.
How has GRSE stock performed recently?
The GRSE stock has moved marginally higher to ₹2,681 over the past month from ₹2,610.
The stock touched its 52-week high of ₹3,338.90 on 29 April 2026 and its 52-week low of ₹1,965.00 on 30 March 2026.
Should you consider PSU stocks with strong Expansion plans?
PSU stocks with strong expansion plans, particularly in sectors such as defence, power, railways, mining, and shipbuilding have shown promise. Large capital expenditure backed by government support can drive higher revenues, stronger earnings, and improved market positions over time.
However, investors should assess project execution, return on capital, and valuations. Expansion alone does not guarantee success. Choose fundamentally strong PSUs with visible growth drivers.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com