Power Grid Corporation of India Ltd (POWERGRID)

Power · Power Generation & Distribution · NSE · Updated 1 September 2026
By StockFin Research Team AI-Assisted Analysis Source: BSE/NSE Filings
₹266.95 ↓ 3.05% (1Y)

🎯 Key Takeaways

  • Power Grid Corporation of India Ltd is in a stable growth phase, leveraging its dominant transmission infrastructure position to expand through regulated asset additions and strategic acquisitions. Management is focused on capitalizing on long-term power sector development plans while maintaining financial discipline.
  • Revenue declined 1.4% QoQ to ₹11,497 in Q1FY27.
  • ⚠️ Regulatory delays in tariff approvals or rate revisions by CERC pose a material risk to revenue visibility given the company's capital-intensive trans
Market Cap
₹2.48 L Cr
P/E Ratio
15.6
P/B Ratio
2.47
ROE
15.8%
ROCE
10.5%
Debt/Equity
1.47
Div Yield
5.06%
Promoter
51.3%

📖 The Story

Power Grid Corporation of India Ltd is in a stable growth phase, leveraging its dominant transmission infrastructure position to expand through regulated asset additions and strategic acquisitions. Management is focused on capitalizing on long-term power sector development plans while maintaining financial discipline.

📰 What's Happening

In August 2026, Power Grid completed the acquisition of Fatehgarh II Transmission Limited for ₹19.11 crores, adding two synchronous condensers to its transmission network under a build-own-operate-transfer framework approved by the Ministry of Power. The 37th AGM on 20 August 2026 approved a ₹35,000 crore debenture issuance plan and enhanced borrowing limits, signaling intent to fund future infrastructure expansion through debt markets. Additionally, Amol Babulal Taori was appointed as new Director (Finance) and CFO effective 20 August 2026, succeeding Venkata Subrahamanayam Vallurie, which may influence capital allocation strategies.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

MetricJun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Revenue11,19611,47612,39511,66611,497
Operating Profit6,0165,8917,2725,7716,408
OPM %53.7%51.3%58.7%49.5%55.7%
Net Profit3,6313,5664,1854,5463,598
EPS₹3.90₹3.84₹4.50₹4.89₹3.87

Operating performance shows stable profitability with slight margin expansion in recent quarters, reporting OPM of 55.7% in June 2026, up from 49.5% in March 2026, driven by cost optimization and regulated revenue streams. Net profit declined slightly to ₹3,598 crores in June 2026 from ₹4,546 crores in March 2026, but remains consistent with seasonal patterns observed in prior quarters. Revenue has held steady around ₹11,500 crores per quarter, indicating mature, predictable cash flows rather than aggressive growth.

🔮 Management Outlook & What's Next

Management has signaled a strategic shift toward expanding financing capacity, with the board approving a ₹35,000 crore debenture issuance plan to be executed via private placement in FY2027-28. This reflects a deliberate capital structure optimization strategy to fund transmission infrastructure growth without equity dilution. The appointment of a new CFO suggests potential refinements in financial reporting and capital allocation discipline.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

ItemMar 2025Mar 2025Mar 2026Mar 2026
Equity Capital9,3019,3019,3019,301
Reserves82,76083,36289,63191,193
Borrowings1.23 L Cr1.31 L Cr1.36 L Cr1.48 L Cr
Total Liabilities2.55 L Cr2.66 L Cr2.78 L Cr2.95 L Cr
Fixed Assets1.73 L Cr1.71 L Cr1.67 L Cr1.77 L Cr
Investments3,4103,1173,7452,995
Total Assets2.55 L Cr2.66 L Cr2.78 L Cr2.95 L Cr

The balance sheet shows consistent equity levels of ₹9,301 crores with growing reserves, while borrowings have increased from ₹1.31 L Cr in March 2025 to ₹1.48 L Cr in March 2026, indicating active but measured leverage expansion to support growth initiatives. Total assets have risen steadily from ₹2.66 L Cr to ₹2.95 L Cr over the past two years, reflecting successful asset base expansion through regulated investments.

💰 Cash Flow Statement (₹ Cr)

ItemMar 2025Mar 2026
Operating+36,223+40,935
Investing-23,533-35,310
Financing-12,357-4,006
Net Cash Flow+333+1,619

👥 Shareholding Pattern

CategoryQ2FY25Q3FY25Q4FY25Q1FY26Q2FY26Q3FY26Q4FY26Q1FY27
Promoters51.3%51.3%51.3%51.3%51.3%51.3%51.3%51.3%
FII28.3%28.1%26.8%26.5%25.7%24.7%25.0%24.3%
DII16.9%17.0%18.4%18.6%19.4%20.3%20.1%20.7%
Public3.0%3.0%3.0%3.1%3.1%3.2%3.0%3.1%
# Shareholders13,29,74113,51,25213,83,98613,88,41713,72,72513,74,80113,35,90913,51,868

Institutional investor interest has shown mixed trends, with FII holdings declining slightly from 25.67% in Q2FY26 to 24.33% in Q1FY27, while DII holdings remained relatively stable around 20%. Promoter holding remains steady at 51.34% with no signs of reduction, and the number of public shareholders has gradually increased, suggesting retail investor confidence without significant institutional accumulation or exit patterns.

⚖️ Peer Comparison — Power Generation & Distribution

Company MCap (₹ Cr) P/E ROCE ROE D/E
ADANIPOWER 4.10 L Cr 28.8 18.3% 23.4% 0.86
NTPC 3.21 L Cr 11.6 10.1% 15.4% 1.34
POWERGRID 2.48 L Cr 15.6 10.5% 15.8% 1.47
ADANIGREEN 2.16 L Cr 125.3 7.3% 9.3% 5.21
ADANIENSOL 1.93 L Cr 65.0 10.5% 12.2% 1.92
ENRIN 1.16 L Cr 77.6 46.2% 34.0% 0.00
TATAPOWER 1.12 L Cr 29.1 11.1% 13.3% 1.80
JSWENERGY 98,091 47.7 7.3% 8.2% 2.52
NTPCGREEN 76,511 127.9 3.7% 3.2% 1.54
NHPC 75,689 21.4 5.0% 10.3% 1.26

🔗 Peer Stock Analyses

⚠️ Risk Factors

Regulatory delays in tariff approvals or rate revisions by CERC pose a material risk to revenue visibility given the company's capital-intensive transmission business model. Additionally, rising borrowing costs could pressure margins if global interest rate hikes translate into higher financing costs for future debenture issuances planned under the ₹35,000 crore program.

📋 Recent Filings

🧠 Analyst's Read

Power Grid remains a cash-generative infrastructure play with predictable regulated returns, but near-term growth will depend on successful execution of its debt-funded expansion plans and regulatory outcomes. Investors should monitor the timing and pricing of upcoming debenture issuances and any shifts in transmission project approval timelines.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-01.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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