(HT)
Payments from state-run companies to the exchequer are likely to cross ₹80,000 crore in FY26, an all-time high, two people familiar with the matter said, citing strong contributions from oil and gas, power, and mining.
Robust earnings in these sectors, along with a focus on boosting returns from public sector investments, is expected to sustain the growth in dividend inflows. During FY25, Central Public Sector Enterprise (CPSE) dividend collections stood at around ₹74,016.68 crore, despite global headwinds and domestic demand pressures, beating revised estimates of ₹55,000 crore by a huge margin.
Sector leaders NTPC Ltd, Powergrid Corporation of India Ltd, Hindustan Zinc Ltd, NPCIL Ltd, Coal India Ltd, National Aluminium Company Ltd and ONGC — the top dividend contributors among CPSEs in FY25—are expected to drive the bulk of dividend payouts in FY26, the first person mentioned above said, requesting anonymity,
“The consistent performance of key sectors, despite external challenges, reflects the growing resilience of India’s public sector enterprises,” the first person mentioned above said.
“With strategic reforms and a sharper focus on profitability, CPSEs could play an even bigger role in supporting the government’s non-tax revenues going forward,” the person added.
Dividend payouts from oil and gas CPSEs are set to be boosted by surging demand for petroleum products, projected to reach a record 252.9 million tonnes in FY26, marking a 4.65% year-on-year increase, driven primarily by higher petrol and diesel consumption.
In parallel, the country plans to triple underground coal production by 2028 to meet energy needs, compensating for declining opencast mining and reducing imports, despite pressure to reduce fossil fuel reliance.
