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Informist, Thursday, May. 14, 2026

By Sunil Raghu

AHMEDABAD – Power Grid Corp. of India Ltd. is expected to report a year-on-year growth in its top line for the March quarter, the second one in a row after a year-on-year fall in revenue for seven quarters. The rise in revenue is expected on the back of better telecom and consulting revenues, in addition to asset capitalisation, according to brokerages tracking the company. However, the company's bottom line growth could be low due to a relatively weaker asset capitalisation.

Power Grid is expected to report a standalone net profit of over INR 44 billion for the March quarter, up over 2% on year, according to the average of estimates from six brokerages. Projections range from a low of nearly INR 39 billion by JM Financial Institutional Securities Ltd. to a high of INR 48 billion by Nuvama Wealth Management Ltd. Motilal Oswal expects an on-year increase in Power Grid's March quarter net profit, with a pick-up in capital expenditure and asset capitalisation, as right-of-way constraints and other project-related delays are expected to have a relatively lower impact. JM Financial sees the rise in asset capitalisation by Power Grid in the March quarter to push up its depreciation and finance cost 18% and 13% on year, respectively.

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--on to the company's balance sheet as fixed assets from capital work-in-progress. When the transfer is complete, the assets become operational and begin to generate revenue. 

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. The company had set a target of capitalising assets worth INR 220 billion for 2025-26 (Apr-Mar).

Power Grid's revenue for the reporting quarter is expected to be over INR 128 billion, which would translate to a growth of 16.63% on year, according to the average of six estimates. Projections for Power Grid's top line range from a low of over INR 122 billion by Prabudas Lilladher Pvt. Ltd. to a high of nearly INR 135 billion by JM Financial Institutional Securities Pvt. Ltd., which believes that growth would be due to increase in capitalisation. Kotak Securities in its note said that for the March quarter, it expects asset capitalisation for Power Grid to be INR 115 billion.

Power Grid's earnings before interest, tax, depreciation, and amortisation are expected to be at INR 110.05 billion, according to an average of six estimates. Power Grid's EBITDA projection of nearly INR 105.81 billion by Prabhudas Lilladher Pvt. Ltd. is the lowest and that of nearly INR 113.73 billion by JM Financial Institutional Securities Pvt. Ltd. is the highest.

Power Grid had announced a capital expenditure target of INR 280 billion for the financial year ended Mar. 31, which will rise to INR 350 billion for 2026-27 (Apr-Mar) and then to INR 450 billion for FY28, the company's top official had said in an analyst call post the September quarter earnings. The analysts would keenly watch out for the company's status on its capital expenditure.

Power Grid will announce its March quarter earnings on Friday. Shares of Power Grid have jumped over 17% since it reported December quarter earnings on Jan. 30. On At 1059 IST, its shares traded at INR 301 on the National Stock Exchange, down 0.2% from the previous close.

Of the 10 brokerage reports on the company available with Informist, eight have a 'buy' or equivalent recommendation on the stock with an average target price of INR 348, which is nearly 10% higher than the current market price. One brokerage has a 'sell' recommendation with a target price of INR 267, while another has a hold call with a target price of INR 302.

Following are the Jan-Mar earnings estimates for Power Grid from six brokerages in descending order of the estimate of net profit in INR billion:

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Edited by Akul Nishant Akhoury

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