Low-risk stocks provide consistent returns with regular dividends.
Companies with strong market positions and low debt are safer.
Utilities, IT, energy, and consumer goods dominate stable investments.
The stock market is always unpredictable, with some companies’ shares fluctuating dramatically and others showing slower, steadier movement. Investors who want to protect their capital and earn consistent returns often prefer low-risk stocks.
Large companies in sectors such as electricity, energy, IT, and consumer goods offer such stable investment opportunities. These firms produce essential products or provide services that are difficult to replace. While they don’t make headlines for massive returns, they provide consistent growth and strong dividends.
Here is the list of the best stocks in India that offer lower risks and stable passive income:
5Y Return: 218.63%
Power Grid runs the power transmission network across India. The company reported a consolidated revenue of Rs. 45,843 crore and a net profit of ₹15,521 crore in FY 2024 - 25. With government support, a steady business model, and regular dividends, Power Grid is a safe choice for many investors.
5Y Return: 299.88%
NTPC produces most of India’s electricity. The company plans to add about 26 GW of coal-based thermal power capacity over the next five years. This increases its total thermal capacity to approximately 89 GW, hinting at strong growth potential for the investors.
5Y Return: 233.20%
Coal India supplies coal to power plants. In FY 2024 - 25, the company reported Rs. 1,43,368.92 crore revenue from operations and a net profit of Rs. 35,302.10 crore. Coal India’s high dividends and government backing make it a safe investment opportunity.
5Y Return: 244.31%
ONGC extracts oil and gas. While its standalone profit after tax (PAT) in Q1 of 2025 declined by 15.1%, the company is still a significant player in India’s energy sector. ONGC pays good dividends and has steady revenue, which makes it a better option than highly volatile small-scale energy firms.
Also Read: How to Analyse Stocks: 10 Smart Ways to Find Strong Companies
5Y Return: 138.81%
ITC Ltd manufactures cigarettes, packaged foods, personal care products, and runs hotels. Its diversified business model, strong market presence, and stable operations hold the attention of low-risk investors.
5Y Return: 34.57%
Infosys is one of India’s top IT companies. It provides digital services to big companies worldwide. The company’s announcement of a total dividend of Rs. 43 per share shows its strong financial health, capturing the long-term investors’ interest.
5Y Return: 139.77%
Hindustan Zinc produces metals such as zinc, lead, and silver that are used in construction and technological industries. The company is benefiting from steady demand in the metal sector, ensuring consistent returns for investors.
5Y Return: 160.62%
IRCTC handles online railway ticketing, catering, and tourism. The organization reported 1,120.15 crore revenue from operations, which is an 11.81% YoY increase. Its monopoly in railway services and government support make it a reliable choice.
Also Read: Top Large-Cap Stocks to Invest in India (2025 Edition)
5Y Return: 23.08%
Reliance Industries is involved in oil refining, retail, telecom, and digital services. The diverse business model ensures steady income, even if one sector slows down. Its size and strong market position make it safer than smaller companies.
5Y Return: 7.87%
TCS is a massive software and IT support company that has a strong client base. The company’s recent emphasis on advanced technologies like AI and cloud services has piqued the interest of investors who believe in innovation-led growth.
Low-risk stocks usually have:
Steady income and profits every year
A strong place in the market
Lower debt
Regular dividends to shareholders
Products or services people buy even when the economy slows
In India, utilities, IT companies, energy firms, consumer goods makers, and big conglomerates often fit this profile.
Low-risk stocks in India in 2025 provide steady growth and regular dividends. Companies like Power Grid, NTPC, Hindustan Zinc, IRCTC, Reliance, and TCS are considered safer bets. These companies sell products and services people need regardless of the market and economic situation.
However, no stock is risk-free. Investors need to watch for changes in government policies, costs, or global demand. Choosing several of these stocks together can help protect money while still earning a moderate return.
1. What defines a low-risk stock in 2025?
A low-risk stock has steady profits, regular dividends, strong market presence, and minimal debt.
2. Are low-risk stocks suitable for young investors?
Yes, they provide stability and moderate returns, making them ideal for beginners or cautious investors.
3. Do low-risk stocks pay dividends regularly?
Most low-risk stocks distribute dividends consistently, offering reliable income in addition to share value growth.
4. Can low-risk stocks grow as fast as high-risk stocks?
Not usually. They grow steadily over time, prioritizing stability and predictable returns over rapid gains.
5. How can investors identify low-risk stocks in India?
Look for large companies in essential sectors like utilities, energy, IT, consumer goods, and well-established conglomerates.