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Informist, Tuesday, Aug. 4, 2026

 

By Sunil Raghu

 

AHMEDABAD – Power Grid Corp. of India Ltd. is expected to report a sharp year-on-year growth in revenues for the June quarter on the back of high demand for power due to a delayed monsoon. However, bottom line growth is seen relatively slower, despite commissioning of projects and asset capitalisation, due to continued capital expenditure, according to analysts.

 

India's biggest electric power transmission utility company is expected to report a net profit of INR 39 billion for the June quarter, up 7% on year, according to the average of estimates from seven brokerages. Projections range from a low of INR 36.2 billion from Motilal Oswal Financial Services Ltd. to a high of INR 40.4 billion from Nuvama Wealth Management Ltd.

 

The profit is expected to be driven by strong commissioning of projects in the June quarter, Nuvama said. Kotak Securities Ltd. also sees the improved bottom line growth to be reflective of healthy asset capitalisation in the second half of the financial year 2025-26 (Apr-Mar). 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 revenue generating assets.

 

State-owned Power Grid 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. As of Mar. 31, the company's transmission network stood at 184,000 circuit kilometres and a transformation capacity of 6.24 gigavolt amperes.

 

Power Grid's revenues for the reporting quarter are expected at nearly INR 123 billion, a jump of nearly 24% on year, according to the estimates. Forecasts for Power Grid's top line range from a low of INR 106.5 billion from Motilal Oswal to a high of INR 128.15 billion from JM Financial Institutional Securities Pvt. Ltd.

 

Power Grid's earnings before interest, tax, depreciation, and amortisation are expected at nearly INR 100 billion, according to the estimates. The lowest estimate is INR 87.5 billion from Motilal Oswal and the highest is INR 105.9 billion from Nuvama.

 

Analysts say capex trajectory and commissioning of projects are the key things to monitor for Power Grid going ahead as the base year (FY26) showed "impressive" growth. In FY26, the company capitalised INR 282 billion worth of power transmission lines and modified line commissioning of INR 75 billion in Jan-Mar, Prabhudas Lilladher said, Kotak Securities sees Power Grid's capex at INR 85 billion and asset capitalisation of INR 60 billion in Apr-Jun. Power Grid had set a capital expenditure target of INR 370 billion for FY27 and INR 450 billion for FY28.

 

Power Grid will detail its June quarter earnings Wednesday. Shares of Power Grid have fallen nearly 7% since it reported March quarter earnings on May 15. Tuesday, its shares closed 1.3% lower at INR 283.40 on the National Stock Exchange.

 

Of the 10 brokerage reports on the company available with Informist, eight have a "buy" or an equivalent rating on the stock with an average target price of INR 354 and two have a "hold" rating with a target price of INR 294.

 

Following are the Apr-Jun earnings estimates for Power Grid from seven brokerages in descending order of the estimate of net profit in INR billion:

 

Brokerage	Net sales	Net profit	EBITDA
Nuvama Wealth Management Ltd.	128.14	40.40	105.90
Elara Securities (India) Pvt. Ltd.	127.54	40.18	101.19
Bank of America Global Reach	122.40	39.86	100.72
Kotak Securities Ltd	126.67	38.82	103.89
Prabhudas Lilladher Pvt. Ltd.	120.56	38.78	98.47
JM Financial Institutional Securities Pvt. Ltd.	128.15	38.62	100.94
Motilal Oswal Financial Services Ltd.	106.50	36.20	87.54
Average	122.85	38.98	99.81

 

End

 

Edited by Shubhayan Bhattacharya

 

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