Power Grid Corporation of India FY2025-26 Financial Update

Power Grid Corporation of India has reported a Profit After Tax (PAT) of ₹15,928 crore for the fiscal year 2025-26. The company achieved a record annual capital expenditure (CAPEX) of ₹39,967 crore on an accrual basis during the same period.

Reader Takeaway: Stable profit growth and record capex signal expansion; watch borrowing and regulatory hurdles.

What just happened

Power Grid Corporation of India announced its financial results for FY 2025-26, posting a Profit After Tax (PAT) of ₹15,928 crore. This marks an increase from ₹15,521 crore in the previous fiscal year. The company also reported achieving its highest-ever annual capital expenditure (CAPEX) of ₹39,967 crore. Earnings Per Share (EPS) stood at ₹17.13.

Revenue from operations for FY 2025-26 was ₹46,732.87 crore, an increase from ₹45,792 crore in FY 2024-25. EBITDA, however, saw a slight decrease from ₹40,532 crore to ₹39,677 crore.

Why this matters

The record CAPEX underscores Power Grid's commitment to expanding its transmission infrastructure, crucial for integrating renewable energy and meeting growing power demand. The increase in PAT indicates sustained profitability. The proposed rise in borrowing limits suggests ambitious future expansion plans.

The backstory

Power Grid Corporation of India is a central public sector enterprise, engaged in the transmission of electricity across India. The company has consistently focused on strengthening its transmission network and undertaking projects related to power system development.

What changes now

Shareholders will receive a recommended final dividend of ₹1.25 per equity share for FY 2025-26. The company is seeking approval to increase its overall borrowing limit from ₹1,80,000 crore to ₹2,20,000 crore. Additionally, it plans to raise funds up to ₹35,000 crore through private placement in FY 2027-28.

Shri Burra Vamsi Rama Mohan is set to take over as Chairman and Managing Director from April 1, 2026.

Risks to watch

The company has identified regulatory risks, including potential issues with Right of Way (ROW) and tariff disallowances, which could impact project execution and profitability. The proposed increase in borrowing limits is a significant watch point, reflecting substantial future funding needs.

Peer comparison

While specific peer performance data for FY26 is not detailed in this filing, Power Grid operates in a capital-intensive sector. Its peers in the power transmission space include Sterlite Power, Adani Transmission (now Adani Energy Solutions), and KEC International (which has transmission EPC business). Power Grid's scale and government backing differentiate it.

Context metrics (time-bound)

• FY 2025-26 PAT: ₹15,928 crore (vs ₹15,521 crore in FY 2024-25)
• FY 2025-26 Revenue: ₹46,732.87 crore (vs ₹45,792 crore in FY 2024-25)
• FY 2025-26 CAPEX: ₹39,967 crore
• FY 2026-27 CAPEX target: ₹37,000 crore
• Gross Fixed Assets: ₹3,20,334 crore

What to track next

Investors should monitor the approval process for the increased borrowing limits and the successful fundraising of ₹35,000 crore. Progress on the operationalization of new transmission lines from the record CAPEX and the company's ability to mitigate identified regulatory risks will be key.