Best PSU Stocks in March 2025 Based on 5-Yr CAGR: RVNL, HAL, BEL and More

Public Sector Undertakings (PSUs) have been a key pillar of India’s economy, contributing to growth while supporting the country’s energy, infrastructure, and industrial sectors. These government-owned companies operate across various industries, including energy, banking, utilities, and defence, playing a vital role in national development and government revenue generation. This article explores the top PSU stocks for March 2025, selected based on their 5-year CAGR, market capitalisation, and 1-year return.

Best Government Stocks in India March 2025 – Based on 5yr CAGR

Name Market Cap (₹ in crore) Close Price (₹) ↓5Y CAGR (%) 1Y Return (%)
Rail Vikas Nigam Ltd 77,500.20 371.7 73.56 42.77
Hindustan Aeronautics Ltd 2,25,276.86 3,368.50 55.7 14.26
Bharat Electronics Ltd 1,87,203.44 256.1 54.76 35.72
Bharat Dynamics Ltd 37,008.15 1,009.60 47 18.77
Bharat Heavy Electricals Ltd 68,391.21 196.41 41.11 -11.49

Note: The best PSU stocks list provided here is as of February 24, 2025. The stocks are sorted based on their 5-year CAGR.

Overview of the Best PSU Stocks in March 2025

1.Rail Vikas Nigam Ltd

Rail Vikas Nigam Ltd (RVNL) is responsible for executing various railway infrastructure projects assigned by the Ministry of Railways (MoR), including track doubling, gauge conversion, new lines, electrification, and major bridge construction. 

In the first half of FY 2025, RVNL reported a total income of ₹9,472.82 crore, down from ₹11,063.52 crore in H1 FY 2024. Its net profit also declined to ₹510.82 crore from ₹737.51 crore during the same period last year.

Key metrics:

  • Return on Equity (ROE): 15.71%
  • Earning per Share (EPS): ₹5.99

2. Hindustan Aeronautics Ltd

Hindustan Aeronautics Ltd (HAL) specialises in manufacturing, repairing, and maintaining aircraft and helicopters. It is a Navratna PSU under the Ministry of Defence. 

In the first half of FY 2025, HAL’s total income rose to ₹11,60,255 lakh from ₹10,43,036 lakh in H1 FY 2024. The company’s net profit also increased to ₹2,94,763 lakh from ₹2,05,076 lakh during the same period last year.

Key metrics:

  • ROE: 27.83%
  • EPS: ₹129.35

3. Bharat Electronics Ltd

Bharat Electronics Ltd (BEL), a Navratna PSU under the Ministry of Defence, develops advanced electronic systems for the Indian Army. 

In the first half of FY 2025, the company reported a turnover of ₹8,530.43 crore, a 15.83% increase from ₹7,364.82 crore in the same period last year. Its profit after tax (PAT) rose by 39.03% to ₹1,867.41 crore, compared to ₹1,343.18 crore in H1 FY 2024.

Key metrics:

  • ROE: 28.55%
  • EPS: ₹6.79

4. Bharat Dynamics Ltd

Bharat Dynamics Ltd (BDL), a PSU under the Ministry of Defence, specialises in manufacturing guided missile systems and related equipment for the Indian Armed Forces. 

In H1 FY 2025, the company reported revenue from operations of ₹735.94 crore, down from ₹913.53 crore in H1 FY 2024. Its net profit declined to ₹129.75 crore from ₹188.91 crore during the same period last year.

Key metrics:

  • ROE: 15.16%
  • EPS: ₹15.43

5. Bharat Heavy Electricals Ltd

Bharat Heavy Electricals Ltd (BHEL), a leading integrated manufacturer of power plant equipment, specializes in designing, engineering, producing, installing, testing, commissioning, and servicing a wide range of products and services. 

For the 9 months ending December 31, 2024, the company’s total income rose to ₹19,662.15 crore from ₹16,022.21 crore in the same period of FY 2024. The company reported a PAT of ₹29.45 crore, recovering from a loss of ₹207.40 crore in the previous year’s corresponding period.

Key metrics:

  • ROE: 2.01%
  • EPS: ₹1.42

Best PSU Stocks in India – Based on Market Cap

Name ↓Market Cap (₹ in crore)
NTPC Ltd 3,16,353.73
Power Grid Corporation of India Ltd 2,43,582.81
Coal India Ltd 2,27,990.13
Hindustan Aeronautics Ltd 2,25,276.86
Bharat Electronics Ltd 1,87,203.44

Note: The best PSU stocks list provided here is as of February 24, 2025. The stocks are sorted based on their market cap.

 

Best PSU Stocks in India – Based on 1-year Return

Note: The best PSU stocks list provided here is as of February 24, 2025. The stocks are sorted based on their 1-year return.

 

Advantages of Investing in Top PSU Stocks

  • Consistent Dividends

With government backing, PSUs maintain stable revenues, often leading to regular and dependable dividend payouts. This makes them a strong choice for investors seeking steady income.

  • Government Support

PSUs benefit from government assistance, ensuring stability during economic downturns. This support includes financial aid, policy advantages, and protection from major market fluctuations.

  • Strong Industry Position

Many PSUs dominate key sectors such as energy, transportation, and utilities, providing both stability and long-term growth potential.

Conclusion

PSU stocks offer reliable dividend income and potential capital appreciation. However, with numerous options available, thorough research is essential before making investment decisions.

 

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.

Adani Group to Invest ₹1.1 Lakh Crore in Madhya Pradesh; Another ₹1 Lakh Crore Planned

Adani Group has announced a massive investment of ₹1.1 lakh crore in Madhya Pradesh across various sectors, including pumped storage, cement, mining, smart meters, and thermal energy. This investment is expected to create 1.2 lakh jobs by 2030.

Speaking at the Madhya Pradesh Global Investors Summit 2025, Adani Group Chairman Gautam Adani highlighted the state’s transformation into a prime investment destination. He emphasised that these investments would play a key role in Madhya Pradesh’s economic and industrial growth.

Existing Investments and Future Plans

Adani Group has already invested over ₹50,000 crore in Madhya Pradesh across energy, infrastructure, manufacturing, logistics, and agri-business, generating 25,000+ jobs.

Additionally, the group is in advanced talks for another ₹1 lakh crore investment, which would include:

  • A greenfield smart city project
  • A major airport project
  • A coal gasification project

According to Gautam Adani, these investments will boost employment, improve connectivity, and position Madhya Pradesh as a key economic hub.

Stock Performance

Despite the major announcement, most Adani Group stocks were trading lower on Monday due to a broader market selloff:

Conclusion

Adani Group’s ₹1.1 lakh crore investment in Madhya Pradesh underscores its commitment to the state’s economic growth, with plans to create 1.2 lakh jobs by 2030. While the announcement highlights future expansion across multiple sectors, Adani stocks faced pressure due to a broader market downturn. Investors will closely monitor further developments and execution of these projects.

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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.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Gillette India Share Price Surges 6% Despite Weak Market, Gains 17% in a Week

Gillette India share price saw a sharp rise of 6%, reaching ₹8,175.20 on the BSE in Monday’s trading session. At 10:14 AM, the stock was up 4% at ₹8,585, even as the BSE Sensex declined by 0.96%.

Over the past week, Gillette India has outperformed the market, gaining 17%, while the BSE Sensex dropped 1.8%.

Company’s Clarification on Stock Movement

Gillette India clarified that there is no undisclosed price-sensitive information impacting the stock’s movement. The company stated that, to its knowledge, no information needs to be disclosed to the exchange at this time.

About Gillette India

GIL is a well-known FMCG company in India, manufacturing and selling men’s grooming and oral hygiene products. Its popular brands include Gillette, Oral B, Venus, and Braun. The company offers a range of products such as shaving razors, blades, shaving foam, toiletries, and toothbrushes.

Stock Performance in 2025

So far in calendar year 2025, Gillette India’s shares have declined 12%, underperforming the market. In comparison, the BSE Sensex is down 5%, and the BSE FMCG index has fallen 9% during the same period.

Financial Performance (Q2FY25)

For the October-December 2024 quarter (Q2FY25), Gillette India reported:

  • Net profit: ₹125.97 crore (up 21.18%) from ₹103.95 crore in the previous year.
  • Revenue from operations: ₹685.55 crore (up from ₹639.46 crore) in the same period last year.

The company credited its strong performance to brand strength, innovation, and effective retail execution.

Conclusion

Gillette India’s stock surged despite broader market weakness, driven by strong financial performance and investor optimism. While the company clarified no undisclosed factors behind the rally, its brand strength and innovation continue to support growth. However, the stock remains down for 2025, underperforming the broader market. Investors will watch future earnings and market trends for further direction.

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.

 

Airtel Partners with Apple to Offer Apple TV+ and Apple Music to Customers

Bharti Airtel has teamed up with Apple to bring premium entertainment to its customers. As part of this partnership, Bharti Airtel will offer Apple TV+ and Apple Music to its Home Wi-Fi and postpaid users.

Who Gets Access?

  • Home Wi-Fi Customers: Those on plans starting at ₹999 per month can enjoy Apple TV+ along with access to multiple devices for streaming.
  • Postpaid Customers: Users on plans above ₹999 will get Apple TV+ along with six months of free Apple Music, which includes a vast collection of Indian and global music.

Enhanced Entertainment Experience

With this partnership, Airtel customers can access Apple TV+ shows and movies, such as popular titles like Ted Lasso, Severance, The Morning Show, Slow Horses, Silo, and more. The latest Apple TV+ films, such as Wolfs and The Gorge, will also be available.

Additionally, Apple Music will provide customers with:

  • A massive library of songs across multiple languages, including Hindi and English.
  • Expertly curated playlists and artist interviews.
  • Apple Music Radio, lossless audio, and immersive Spatial Audio.

Airtel’s Take on the Partnership

Siddharth Sharma, Chief Marketing Officer and CEO – Connected Homes at Airtel, said the partnership with Apple will offer a premium entertainment experience to millions of Airtel users. He emphasised that this move will set a new standard for digital content consumption in India.

Shalini Poddar, Director of Content and Services at Apple India, expressed excitement about making Apple’s award-winning content more accessible to Indian audiences.

Airtel Strengthens Its Entertainment Portfolio

With Apple TV+ and Apple Music joining Airtel’s existing partnerships with Netflix, Amazon Prime, ZEE5, and Jio Hotstar, customers now have a wide range of entertainment choices. This partnership solidifies Airtel’s position as a leading provider of premium digital content.

About Bharti Airtel

Airtel is one of the world’s largest telecom operators, with over 550 million customers across India and Africa. It provides high-speed 4G/5G mobile broadband, fibre internet with speeds up to 1 Gbps, digital entertainment, cloud services, cybersecurity solutions, and IoT services.

Bharti Airtel share price is trading at ₹1,609.40, down 1.82% as of 11:53 AM IST on February 24. The stock opened at ₹1,627.00, reached a high of ₹1,637.55, and a low of ₹1,605.35. 

Conclusion

Bharti Airtel’s partnership with Apple enhances its premium entertainment offerings, giving customers access to Apple TV+ and Apple Music. This move strengthens Airtel’s digital content portfolio, reinforcing its position as a top telecom and entertainment provider in India. Despite the announcement, Airtel’s stock traded lower amid broader market weakness.

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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.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

RBI Tightens Unsecured Loans: What It Means for Healthcare Financing

The Reserve Bank of India (RBI) has tightened rules on unsecured loans due to increasing defaults. Fitch Ratings has warned about financial stress in personal loans and credit card debt. However, experts argue that healthcare loans need a different regulatory approach.

Concerns Over Rising Defaults

A recent Fitch report highlights growing risks in unsecured lending. RBI data shows that overdue microfinance loans (31 to 180 days past due) increased from 2.15% in March 2024 to 4.3% in September 2024. In response, the RBI raised risk weights on unsecured loans, making borrowing more expensive. These higher costs are passed on to consumers and businesses.

Healthcare Loans Are Different

Medical loans differ from regular personal loans. Unlike other loans, medical loan funds go directly to hospitals, reducing misuse.

Medical emergencies often require quick funding, making secured loans impractical. A balanced regulatory approach that ensures access to healthcare financing while managing risks in the unsecured loan market.

Balancing Regulation and Access

As lenders move toward secured loans, industry experts urge the RBI to consider the essential nature of healthcare loans. Striking a balance between managing credit risks and ensuring access to medical funding remains a key challenge.

Conclusion

While RBI’s stricter rules aim to manage credit risks, healthcare financing needs special consideration. A balanced approach is crucial to ensure timely access to medical loans.

 

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.

 

RBI Proposes Removal of Prepayment Penalties on Floating Rate Loans

The Reserve Bank of India (RBI) has proposed new guidelines to eliminate prepayment penalties and foreclosure charges on floating-rate loans. The draft guidelines, released on Friday, invite public feedback until March 21, 2025. Once finalised, the new rules will apply to loans closed after the specified date in the final circular.

Who Will Be Affected?

The proposal applies to:

  • Banks: All Scheduled Commercial Banks (except Payments Banks), Local Area Banks, and Co-operative Banks.
  • Financial Institutions: Non-Banking Financial Companies (NBFCs), Housing Finance Companies (HFCs), and All India Financial Institutions (AIFIs).

Key Changes Proposed

  • No prepayment charges for individuals with floating rate loans, except for business loans.
  • No charges for small businesses (MSEs) and individuals on floating rate business loans, except for Tier 1 and Tier 2 Urban Cooperative Banks (UCBs) and base layer NBFCs.
  • No penalties for early repayment of any floating rate loan, whether partial or full.
  • No minimum lock-in period for prepayment or foreclosure.
  • Regulated entities (REs) must disclose charges in the Key Fact Statement given to borrowers.
  • No retrospective penalties on previously undisclosed or waived prepayment charges.
  • No foreclosure charges if the lender initiates loan closure.

Why This Matters

These proposed rules will provide borrowers with more flexibility in repaying their loans without extra costs. By removing excessive penalties, the RBI aims to promote transparency and ease of business for borrowers managing floating rate loans.

Conclusion

The RBI’s proposal to remove prepayment penalties on floating-rate loans is a significant step toward borrower-friendly lending practices. By enhancing transparency and reducing costs, these changes will empower individuals and small businesses to manage their loans more efficiently.

 

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.

Your EPF Deposits May Earn Fixed Returns – Key Updates on the New Proposal

The government is taking steps to modernise the services of the Employees’ Provident Fund Organisation (EPFO) to enhance user experience. Meanwhile, the EPFO’s Central Board of Trustees (CBT) will meet on February 28 to decide the interest rate on EPF deposits for the financial year 2024-25.

EPFO Interest Rate Decision

The CBT, led by the Union Minister for Labour and Employment, includes representatives from employee associations, trade unions, and government officials. The current interest rate on EPF deposits is 8.25% (for FY 2023-24), and reports suggest that this rate may remain unchanged for the next financial year. However, the CBT’s decision must be approved by the finance ministry before it becomes final.

EPFO Interest Rate Trends

  • FY 2023-24: 8.25% (highest in 3 years)
  • FY 2022-23: 8.15%
  • FY 2021-22: 8.10% (lowest since 1977-78)
  • 2010-11: 9.50% (highest in the last decade)
  • 2019-2021: 8.50% (stable for 2 years)

Government Considering Fixed Returns on EPF

The government is considering introducing a fixed interest rate on EPF deposits to ensure stable returns for millions of EPFO members. A proposal is being discussed to create an Interest Stabilisation Reserve Fund, which would help maintain consistent interest rates. However, this proposal is still in the early stages and is being studied for feasibility.

How Does the Government Invest EPF Deposits?

The EPFO invests in equity markets through Exchange Traded Funds (ETFs) linked to:

  • BSE SENSEX
  • NSE NIFTY-50
  • Bharat 22 ETF (Government disinvestment fund)
  • CPSE ETF (Central Public Sector Enterprises Index)

EPFO 3.0 – Major System Upgrade from June 1

The EPFO will launch EPFO 3.0 from June 1, 2025, bringing major improvements in service delivery for over 7 crore EPF members. According to Union Minister Mansukh Mandaviya, the upgrade will improve efficiency and make EPF services more seamless.

Possible Changes in Employee Contribution

One of the proposed changes under EPFO 3.0 is a review of the 12% cap on employee contribution. Employees may soon be allowed to contribute more than 12% of their basic salary to increase their retirement savings. However, employer contributions will remain fixed based on salary, ensuring no additional financial burden on employers.

Conclusion

These updates indicate significant changes in EPFO policies aimed at providing better returns and improved services for employees.

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.

Prithvi Exchange, ASM Technologies Share Price in Focus as They Trade Ex-Dividend Today

Prithvi Exchange (India) Ltd and ASM Technologies Ltd will trade ex-dividend today, meaning investors who buy shares after today will not be eligible for the announced dividends.

Record Date and Eligibility

The record date for determining eligible shareholders is February 24, 2025. Investors who purchased shares before this date will be entitled to receive the dividend under the T+1 settlement system.

Dividend Payout Details

ASM Technologies Ltd

  • ASM Technologies board approved an interim dividend of ₹1 per equity share (10% of the face value of ₹10 per share) for the financial year 2024-25.
  • The decision was made during the board meeting held on February 12, 2025, along with the approval of quarterly financial results.
  • The dividend will be paid on or before March 11, 2025.
  • ASM Technologies share price opened at ₹1,130.00 today, reaching a high of ₹1,130.00 and a low of ₹1,077.75.

Prithvi Exchange (India) Ltd

  • The board approved an interim dividend of ₹1 per equity share (10% of the face value of ₹10 per share) for FY 2024-25.
  • The announcement was made during the February 14, 2025 board meeting, where the company also approved its Q3 financial results.
  • The record date to determine eligible shareholders is February 24, 2025.
  • Prithvi Exchange (India) share price opened at ₹162.10 today, hitting a high of ₹164.00 and a low of ₹158.25.

Conclusion

Investors holding shares of these companies as of the record date will receive their dividend payouts as per the company’s schedule.

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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.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Key Corporate Actions: PFC, SBI Cards and 8 Others to Trade Ex-Date This Week

Several stocks, including Power Finance Corporation (PFC), SBI Cards and Payment Services, ASM Technologies, and Prithvi Exchange (India), will be in focus this week as they trade ex-date due to corporate actions such as dividends, stock splits, and buybacks. The ex-dates will fall between February 24 and February 28, 2025.

Key Corporate Actions This Week (Feb 24 to Feb 28)

Security Name Ex-Date Purpose Record Date
ASM Technologies Ltd 24 Feb 2025 Interim Dividend – ₹1.00 24 Feb 2025
Prithvi Exchange (India) Ltd 24 Feb 2025 Interim Dividend – ₹1.00 24 Feb 2025
Global Infratech & Finance Ltd 25 Feb 2025 Resolution Plan – Suspension 25 Feb 2025
SBI Cards and Payment Services Ltd 25 Feb 2025 Interim Dividend – ₹2.50 25 Feb 2025
Bhatia Communications & Retail (India) Ltd. 28 Feb 2025 Interim Dividend – ₹0.01 28 Feb 2025
International Gemmological Institute India Ltd. 28 Feb 2025 Interim Dividend 28 Feb 2025
Jindal Worldwide Ltd. 28 Feb 2025 Bonus Issue 4:1 28 Feb 2025
Nava Ltd. 28 Feb 2025 Buyback of Shares 28 Feb 2025
Oasis Securities Ltd. 28 Feb 2025 Stock Split (₹10 to ₹1) 28 Feb 2025
Panchsheel Organics Ltd. 28 Feb 2025 Interim Dividend – ₹0.80 28 Feb 2025
Power Finance Corporation Ltd. 28 Feb 2025 Interim Dividend – ₹3.50 28 Feb 2025
RDB Realty & Infrastructure Ltd. 28 Feb 2025 Stock Split (₹10 to ₹1) 28 Feb 2025

 

Stocks Trading Ex-Dividend

  • Power Finance Corporation (PFC): Interim dividend of ₹3.50 per share, ex-date February 28
  • Panchsheel Organics: Interim dividend of ₹0.80 per share, ex-date February 28
  • ASM Technologies: Interim dividend of ₹1 per share, ex-date February 28
  • Prithvi Exchange (India): Interim dividend of ₹1 per share, ex-date February 28
  • SBI Cards and Payment Services: Interim dividend of ₹2.50 per share, ex-date February 25
  • Bhatia Communications & Retail (India): Interim dividend of ₹0.01 per share, ex-date February 28

Additionally, International Gemmological Institute India’s board will meet on February 22, 2025, to decide on a possible interim dividend for the financial year ending December 31, 2024.

Stocks Trading Ex-Split

  • Oasis Securities: Subdivision of shares from ₹10 face value to ₹1 face value. Ex-date February 28. The company is under Enhanced Surveillance Measure (ESM: Stage 2) on BSE.
  • RDB Infrastructure and Power: Share split from ₹10 per share to ₹1 per share (1:10 split). Ex-date February 28. The company is also under ESM: Stage 2 on BSE.

Nava to Trade Ex-Date for Buyback

Small-cap power generation company Nava has announced a buyback of 72 lakh equity shares (2.48% of total shares) at ₹500 per share, amounting to a total of ₹360 crore. The record date for the buyback is February 28, 2025.

Conclusion

This week’s corporate actions, including dividends, stock splits, and a buyback, are likely to influence stock movements. Investors should track these developments and assess their impact on portfolio holdings.

 

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.

Tata Sons Pushes BigBasket for $1 Billion Fundraise Amid Quick Commerce Boom

Tata Sons is reportedly dissatisfied with BigBasket’s sluggish performance, especially as quick commerce rivals like Blinkit, Zepto, and Swiggy Instamart continue to expand rapidly. According to reports, Tata Sons sees this as a strategic mistake that has caused BigBasket to lag behind its competitors.

Push for External Investment

BigBasket, which is owned by Tata Digital (a subsidiary of Tata Sons), has been advised to seek external funding of up to $1 billion to regain market position. Bankers have recently held meetings to discuss potential investors and funding strategies, the report mentioned.

However, Tata Sons is reportedly not keen on leading this funding round. Instead, the group wants to bring in a large financial investor independently at the BigBasket level rather than through Tata Neu. Existing investors, including Tata Sons, may contribute additional capital after securing an external backer.

Possible IPO for BigBasket

According to sources, this funding round could eventually lead to BigBasket launching its own IPO in the future, allowing it to operate as an independent entity.

Market Competition and Challenges

The quick commerce sector has been rapidly growing, with companies gaining market share despite high cash burn rates. As per reports highlighted Blinkit (owned by Zomato) and Zepto hold the largest share in India’s rapid delivery market, while Swiggy Instamart ranks third.

  • Blinkit holds 41% market share
  • Swiggy Instamart holds 23%

BigBasket’s Future Plans

Despite the competition, BigBasket is planning to enter the quick commerce space. Last year, CEO and co-founder Hari Menon announced that the company would launch its own rapid food delivery service in 2025. This will position it against Swiggy’s Bolt, Zepto Café, and Blinkit’s Bistro.

BigBasket also aims to expand its product range to over 30,000 items, roll out pharma deliveries via Tata 1mg, and enhance services in Tier 1 cities.

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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.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.