From Bureaucracy to Billion-Dollar Profits: What Entrepreneurs Can Learn from India’s PSU Comeback

Every year, the BT500 list captures the heartbeat of India’s corporate landscape. It doesn’t just rank companies by profitability, it reflects where India’s economy is headed, which sectors are thriving, and which business models are proving resilient.

Traditionally, this prestigious list has been dominated by private-sector giants and multinational corporations. But the latest rankings deliver a surprising twist: Public Sector Undertakings (PSUs) are back in the spotlight. Once criticized as inefficient and bureaucratic, these government-backed enterprises are now making a strong charge into the top 10 most profitable companies in India.

In fact, five out of the top 10 companies in BT500 are PSUs, an achievement that forces us to rethink long-held assumptions about state-run businesses. For entrepreneurs and business leaders, this is more than a news headline. It’s a masterclass in reinvention, strategy, and sustainability.

1. Reinvention Is Always Possible

For decades, PSUs were seen as slow-moving organizations weighed down by red tape. Yet, through strategic reforms, leadership shifts, and a focus on modernization, many have reinvented themselves.

For example, Oil and Natural Gas Corporation (ONGC) has not only retained its dominance in energy but is also investing in renewable energy to stay future-ready. Similarly, State Bank of India (SBI) has transformed digitally, competing with fintech players through apps, AI-driven services, and customer-focused solutions.

For entrepreneurs, the takeaway is clear: your past inefficiencies don’t define your future trajectory. If a massive PSU can pivot, so can a lean startup or a growing enterprise.

2. Scale and Trust as Competitive Advantages

Startups often dominate headlines, but PSUs prove that scale and trust can be just as powerful as speed and innovation. With government backing, deep distribution networks, and strong public trust, PSUs enjoy advantages that are difficult to replicate.

In industries like infrastructure, power, and banking, these attributes have translated into profitability even during uncertain times.

Entrepreneurs should ask: How can we build scale and credibility in our own ventures? Whether through partnerships, community building, or consistent delivery, these are assets that compound over time.

3. Profitability vs. Valuation: A Reality Check

In today’s startup ecosystem, funding rounds and sky-high valuations often grab the spotlight. Yet, the BT500 rankings remind us of a timeless business truth: profitability is the ultimate marker of strength.

While many unicorns are still chasing break-even, PSUs like Coal India and Indian Oil Corporation are generating consistent profits at massive scale.

For founders, this is a wake-up call: build models where unit economics work from the ground up. Growth is exciting, but sustainable profitability is what ensures survival and legacy.

4. Aligning with National & Global Priorities

PSUs often thrive because they align with India’s macro-economic and national priorities    energy independence, infrastructure development, and financial inclusion.

For instance, NTPC Limited has aggressively diversified into renewable energy, aligning with India’s push toward sustainable power. This alignment not only ensures government support but also creates opportunities for long-term relevance.

Entrepreneurs should take note: the ventures most likely to succeed are those solving systemic, high-priority problems    think climate tech, digital healthcare, or inclusive finance. When your business aligns with a nation’s growth priorities, policy, capital, and customer adoption often follow.

5. Embracing Competition as a Catalyst

The old stereotype that PSUs lack competitiveness no longer holds. Increased scrutiny, global benchmarking, and digital disruption have made them sharper and more aggressive in the market.

As a result, PSUs are no longer just "safe bets" for stability; they are competing head-to-head with agile private companies.

For entrepreneurs, this offers a powerful reminder: competition should be embraced, not feared. True competitiveness forces businesses whether public or private to innovate, cut inefficiencies, and deliver superior value to customers.

Entrepreneurial Era Insights

The rise of PSUs in the BT500 2025 rankings is not just a financial story; it’s a strategic blueprint for entrepreneurs. Here’s the distilled wisdom:

  • Reinvent relentlessly: Past inefficiencies are not destiny.

  • Scale with credibility: Trust and reach can be more powerful than speed.

  • Prioritize profitability: Valuations fade, profits endure.

  • Align with macro trends: National and global priorities fuel growth.

  • Compete to sharpen: Competition drives excellence.

Final Word

The BT500 list is a reminder that business leadership comes from adaptability, resilience, and alignment with broader forces of change.

For entrepreneurs, the resurgence of PSUs signals a new era in India’s corporate fabric: one where profitability is back in focus, traditional businesses are reinventing, and those who adapt fastest whether private startups or state-backed enterprises will define the next decade of growth.