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Informist, Monday, Nov. 3, 2025

 

By Anand JC

 

MUMBAI – Power Grid Corp. of India Ltd. is expected to report year-on-year growth in its top line for the September quarter, the first time in seven quarters, due to an increase in asset capitalisation, according to analysts. However, the company's bottom line growth could hit a three-quarter low.

 

Power Grid is expected to report a net profit of INR 37.83 billion for the latest quarter, which implies growth of 2% on year, according to the average of estimates from five brokerages. Projections range from a low of INR 36.90 billion by MiraeAsset Sharekhan to a high of INR 39.38 billion by JM Financial Institutional Securities.

 

The state-run company is India's biggest electric power transmission utility. It carries over 45% of the total power generated in the country. The Maharatna enterprise owns and operates around 84% of India's inter-state transmission system network, through which it transmits electricity across states.

 

Power Grid's revenue for the reporting quarter is expected to be INR 111.31 billion, which translates to growth of 8.5% on year, according to the average of five estimates. Projections suggest this could be Power Grid's best September quarter in the last four years in terms of year-on-year revenue growth. Forecasts for Power Grid's top line range from a low of INR 105.94 billion by Nuvama Wealth Management to a high of INR 121.01 billion by Kotak Securities.

 

Asset capitalisation is a key indicator of Power Grid's growth and expansion trajectory. This is the process of transferring completed infrastructure projects – such as transmission lines and substations – onto the company's balance sheet as fixed assets from capital work-in-progress. Power Grid capitalised assets worth INR 1.8 billion in the June quarter. The company has set a target of capitalising assets worth INR 220 billion for 2025-26 (Apr-Mar). However, the company has lagged this target in recent years. Kotak Securities said it has forecast moderate revenue growth estimate due to weak capitalisation in the last year or so.

 

"Let us agree that RoW (right of way) is a very big problem in India and making a transmission line is very, very challenging," Power Grid's management had told analysts in a post-earnings call for the June quarter. Right of way is that area of land where transmission line is constructed and operated.

 

"But we are taking required actions for ensuring that RoW issues are resolved. We are very successful in resolving issues in Maharashtra, Gujarat and to some extent in Rajasthan. In Delhi and Haryana, we are in the process of resolving RoW issues," the company had said. The company was facing issues, especially in Delhi and Haryana, the company had said. Power Grid has targeted capital expenditure of INR 280 billion for the current financial year ending Mar. 31. Of this, it had spent INR 69.81 billion in the June quarter.

 

Power Grid's earnings before interest, tax, depreciation, and amortisation are expected to fall nearly 5% on year to INR 94.52 billion, according to an average of four estimates. The projection of INR 89.82 billion by Nuvama as Power Grid's EBITDA is the lowest and of INR 99.98 billion by Kotak Securities is the highest.

 

Power Grid will detail its September quarter earnings Monday. Shares of Power Grid have risen nearly a percent since it reported June quarter earnings on Jul. 30. On Friday, its shares closed at INR 288.15 on the National Stock Exchange, down 1.2%.

 

Of the eight brokerage reports on the company available with Informist, seven have a 'buy' or equivalent rating on the stock with an average target price of INR 356 and one has a 'sell' rating with a target price of INR 240.

 

Following are the Jul-Sept earnings estimates for Power Grid from five brokerages in descending order of the estimate of net profit in INR million:

 

Brokerage	Net sales	Net profit	EBITDA
JM Financial Institutional Securities Pvt Ltd	115,890	39,384	96,102
Nuvama Wealth Management Ltd	105,943	37,933	89,816
Kotak Securities Ltd	121,012	37,768	99,979
Motilal Oswal Financial Services Ltd	106,906	37,188	92,182
Sharekhan Ltd	106,800	36,900	--
Average	111,310	37,835	94,520

 

End

 

Edited by Avishek Dutta

 

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