Earnings Review
Power Grid PAT up despite fall in revenue but misses view
This story was originally published at 16:55 IST on 30 July 2025
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By Shakshi Jain
--Power Grid Apr-Jun net profit INR 36.53 bln
--Analysts saw Power Grid Apr-Jun net profit at INR 37.37 bln
--Power Grid Apr-Jun net profit INR 36.53 bln vs INR 34.12 bln year ago
--Power Grid Apr-Jun revenue INR 99.28 bln vs INR 100.68 bln year ago
--Power Grid board OKs raising up to INR 300 bln via bonds, others in FY27
--Power Grid board OKs raising borrowing limit for FY26 to INR 250 bln
--Power Grid board OKs participating in transmission projects of INR 5 bln
--Power Grid Q1 transmission revenue INR 98.84 bln vs INR 100.53 bln yr ago
--Power Grid Apr-Jun consultancy revenue INR 1.98 bln vs INR 1.53 bln yr ago
--Power Grid Apr-Jun operating margin 97% vs 94% year ago
NEW DELHI – Power Grid Corp. of India Ltd. Wednesday posted a single-digit on-year growth in its net profit for the June quarter despite a marginal fall in its revenue for the three-month period. The bottom line, however, missed the analysts' consensus estimate. Its revenue missed Street's expectation as well by a wide margin.
Power Grid reported a net profit of INR 36.53 billion for the June quarter, up 7% on year but down nearly 16% sequentially. Analysts had expected the company to report a bottom line of INR 37.37 billion. Its revenue in the reporting quarter fell 1.4% on year and almost 10% sequentially to INR 99.28 billion, much lower than the INR 113.5 billion expected by analysts.
The state-run power transmission company's other income jumped almost 70% on year in Apr-Jun to INR 13.29 billion. Sequentially, however, it was down over 11%.
Revenue from Power Grid's transmission business, which accounts for an overwhelming majority of its total revenue, fell almost 2% on year in Apr-Jun to INR 98.84 billion. Meanwhile, income from consultancy operations rose 29% on year to INR 1.98 billion during the quarter. The company's tax outgo for the quarter fell almost 11% on year to INR 7.3 billion.
The rise in the net profit was restricted by an 8% on-year increase in its total expenses to INR 70.85 billion. It was led by a 66% surge in its other expenses for the quarter at INR 11.77 billion. Meanwhile, finance costs of the company in Apr-Jun rose almost 7% on year to INR 23.05 billion and its employee benefit expenses grew 3% to INR 6.34 billion. Depreciation and amortisation costs, which accounted for the largest share in its overall expenditure pie, dipped 3% on year to INR 29.70 billion.
The coompany's operating margin during the quarter stood at 97%, up from 94% in the year-ago quarter.
Alongside its earnings results for the June quarter, Power Grid said its board has approved raising up to INR 300 billion in one or more tranches in the next financial year. It has also approved an increase in the borrowing limit for the current financial year to INR 250 billion from INR 160 billion earlier. Further, the company's board has given an in-principle approval for participation of the company in up to two tariff-based competitive bidding projects with an aggregate total estimated project cost of about INR 5 billion.
On developments regarding joint venture entities of the company, Power Grid's board has given an in-principle approval for sale of the company's entire stake in Parbati Koldam Transmission Co. Ltd., its joint venture with India Grid Trust. The company's board has also given an in-principle approval for formation of a 51:49 joint venture company in India between Power Grid and Nepal Electricity Authority. This would be for implementation of the India portion of Inaruwa-New Purnea and Lamki-Bareilly transmission lines between India and Nepal, Power Grid said. For parts of the project to be implemented in Nepal, the board has given in-principle approval to form a 49:51 joint venture in Nepal between the two parties.
Wednesday, shares of the company ended 1.4% lower at INR 288.95 on the National Stock Exchange. End
Edited by Akul Nishant Akhoury and Vandana Hingorani
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