Power Grid Corp. of India Ltd. reported stable performance for the June quarter, though missed the Street estimates. Revenue rose on the back of higher transmission income, while net profit edged lower compared with the year-ago period.
Investors are expected to compare the company's performance with the Street estimates as earnings missed consensus expectations on key financial metrics.
Power Grid Q1 Results: Profit Slips, Revenue Improves
Power Grid Corp. of India Ltd. reported a marginal decline in net profit for the quarter ended June, even as revenue and operating performance improved from a year ago.
The state-run power transmission company posted a consolidated net profit of Rs 3,598 crore in the first quarter of FY27, down 0.9% from Rs 3,630 crore in the corresponding period last year, missing the consensus estimate of Rs 3,866.5 crore.
Revenue from operations rose 2.7% year-on-year to Rs 11,497 crore from Rs 11,196 crore but came in below analysts' estimate of Rs 12,534 crore.
Operating Margin Expands
Earnings before interest, tax, depreciation and amortisation (Ebitda) increased 4.3% to Rs 9,536 crore during the quarter from Rs 9,147 crore a year earlier, compared with the Street estimate of Rs 10,178.4 crore.
The company's Ebitda margin expanded to 82.9% from 81.7% in the year-ago period, indicating improved operating efficiency despite modest revenue growth.
Board Approves Rs 856.94 Crore Transmission Project
In a separate filing, Power Grid also announced that its Committee of Directors on Investment on Projects has approved an investment for the "Reconductoring of Tirunelveli–Udumalpet and Pugalur–Madurai 400 kV double-circuit transmission lines with HTLS conductor" project. The project, to be booked under additional capital expenditure, entails an estimated investment of Rs 856.94 crore and is scheduled to be commissioned within 24 months from the date of project allocation.
Stock Performance
Shares of Power Grid closed at Rs 281.75 at the end of Wednesday's trading session, losing around 0.6% from its previous close. In the past week, the stock declined around 1.38%.
Investors will now monitor the company's project execution pipeline, transmission asset additions and capital expenditure outlook for the remainder of FY27, as these remain key drivers for regulated returns and earnings growth.
Also Read: Power Grid Q1 Results Today: Time, Earnings Call, Dividend, What To Watch, Share Price
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