Navratna Company

A Navratna Company is a Government of India designation conferred upon select Central Public Sector Enterprises (CPSEs) that meet specified financial performance and operational criteria — granting them enhanced autonomy to make investment decisions, form joint ventures, and undertake strategic expansions without requiring government approval for each transaction, up to defined financial limits. To qualify for Navratna status, a CPSE must first attain Miniratna Category I status, have at least three 'excellent' or four 'very good' ratings in six specific parameters (including net profit to net worth, manpower cost to total cost of production, PBDIT to capital employed, earnings per share, and inter-sector performance), and have a composite score of 60 out of 100 on these parameters. Navratna companies can independently invest up to ₹1,000 crore or 15% of their net worth (whichever is lower) in a single project, and up to ₹5,000 crore overall in a financial year. As of 2025, India has over 25 Navratna CPSEs including Bharat Electronics Limited (BEL), IRFC, NMDC, ONGC, SAIL, and NTPC. For equity investors in PSU stocks, Navratna status signals operational autonomy, financial discipline, and management capability — making these companies more comparable to private sector peers in terms of strategic decision-making speed and corporate governance, supporting premium valuations relative to smaller, less autonomous PSUs.