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  5. Coal India, Mazagon Dock, and BHEL among 11 PSU stocks that announced dividends in Q4FY26

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Coal India, Mazagon Dock, and BHEL among 11 PSU stocks that announced dividends in Q4FY26

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By Sreenivas Ajankar

4 min read | Updated on May 08, 2026, 06:27 IST

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SUMMARY

PSU companies have been paying consistent dividends to their shareholders along with robust earnings and stock gains. Coal India paid a total dividend of ₹26.5 per share in FY26, while the stock rose nearly 27% in 2026. Check the list of PSU stocks with dividend announcements.

Stock list

COALINDIA
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CHENNPETRO
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MAZDOCK
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GRSE
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BHEL
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MAHABANK
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Coal_India_dividends_paid

The Ministry of Finance collected ₹78,438 crore in dividends from Central Public Sector Enterprises (CPSEs) in FY26. | Image: Shutterstock

Coal India, Mazagon Dock, BHEL and many other PSU companies have come with Q4FY26 earnings. Many investors eagerly wait for PSU company results, as these companies have a history of paying consistent dividends to shareholders.

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The Government of India is the majority shareholder in most of these PSU companies. As a result, the PSU company faces a structural compulsion to pay out a significant portion of profits as dividends to meet the government's own fiscal targets.

The Ministry of Finance sets dividend collection targets for Central Public Sector Enterprises (CPSEs) every fiscal year to boost its non-tax revenue. During the Union budget, the government pegged CPSE dividend receipts at ₹71,000 crore for FY26, which exceeded the budget target by 10.5% to ₹78,438 crore, led by coal and power sectors.

So far in Q4FY26, many PSU companies have announced final dividends along with earnings. Many of these PSUs have also delivered robust double-digit stock returns so far in 2026, along with a dividend yield of between 3% and 5%.

Here is a list of prominent PSU companies that announced a final dividend and their YTD return:
Stock nameQ4FY26 dividendFY26 dividendDividend yieldYTD return
Coal India₹5.25/share₹26.5/share5.5%▲26.5%
REC Ltd₹1.55/share₹18.5/share5.4%▲1.4%
Chennai Petroleum₹54/share₹62/share1.2%▲28.8%
National Aluminium₹2/share₹10.5/share2.7%▲29.1%
Mazagon Dock₹4.62/share₹18.1/share0.6%▲7.2%
Garden Reach Shipbuilders₹6.7/share₹19.6/share0.6%▲25.9%
BHEL₹1.4/share₹1.4/share0.3%▲40.5%
Punjab National Bank₹3/share₹3/share2.6%▼11.4%
Union Bank of India₹5/share₹5/share2.8%▲8.8%
Bank of Maharashtra₹1.2/share₹2.2/share2.9%▲37.5%
Indian Bank₹18.25/share₹18.25/share2.1%▲3.1%
Coal India declared a ₹5.25 final dividend in the March quarter, taking FY26 total dividend to ₹26.75 per share, making it one of the highest-yielding PSU dividend companies at 5.5%. Coal India delivered a strong Q4FY26 with consolidated net profit rising 11% YoY to ₹10,839 crore on revenue of ₹46,490 crore, up 5.8% YoY.
REC Ltd board declared a ₹1.55 final dividend in Q4, taking the FY26 total to ₹18.55 per share across multiple tranches. The company reported Q4FY26 net profit at ₹3,375 crore, down 21% YoY, while revenue from operations declined 5.0% YoY to 14,564 crore. Full-year FY26 net profit was ₹16,308 crore, up 2.6% YoY, backed by loan book growth of 15% YoY and healthy renewable energy disbursals. REC's loan book is now above ₹6 lakh crore.
Chennai Petroleum Corporation (CPCL) staged a remarkable turnaround in FY26. Q4 net profit surged 249% YoY to ₹1,422 crore as refining margins recovered and capacity utilisation rose during the quarter. Full-year FY26 standalone net profit was an astonishing ₹3,062 crore, a rise of 1,659% YoY from just ₹174 crore in FY25, driven by improved gross refining margins (GRMs). The company announced a dividend of ₹54 per share in the March quarter, while the total dividend stood at ₹62 per share following robust earnings.
National Aluminium Company reported weak March quarter earnings as its standalone revenue fall 5% YoY to ₹5,013 crore and net profit dip 17% YoY to ₹1,718 crore due to lower domestic aluminium prices and a high base from Q4FY25. However, despite this, the company announced a ₹2 per share dividend for the fourth quarter and a total dividend of ₹10.5 per share for FY26.
Mazagon Dock Shipbuilders posted outstanding March quarter earnings with net profit more than doubling, up 109% YoY to ₹679 crore on revenue of ₹3,850 crore, a rise of 21% YoY. Fiscal year FY26 revenue grew by 13.8% YoY to ₹13,008 crore. The company’s board recommended a final dividend of ₹4.62 along with the March quarter earnings, while the FY26 full-year dividend payout stood at ₹18.12 per share.
Indian Bank reported consistent Q4FY26 earnings with net profit rising 5% YoY to ₹3,103 crore, supported by NII growth of 11% to ₹7,110 crore. Fiscal year FY26 PAT stood at ₹12,156 crore, a rise of 11.3% YoY. The public sector lender recommended a final dividend of ₹18.25 per share with a record date set as June 10, 2026.
Garden Reach Shipbuilders & Engineers (GRSE) reported a strong Q4FY26, with revenue from operations surging 29% YoY to ₹2,119 crore, while net profit rose 24% YoY to ₹303 crore. Along with the result, the company announced ₹6.70 as the final dividend, which takes the total dividend payout to ₹19.60 per share for the fiscal year FY26.

About The Author

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Sreenivas Ajankar is a Deputy Editor at Upstox and has over nine years of experience in capital markets. His areas of expertise include equity research, analysis and business valuation.

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