Power Grid Q1 results: Net profit declines 2.5% to ₹3,631 crore; EBITDA falls 5%

Power Grid, the state-run power transmission company, on Wednesday, July 30, reported a consolidated net profit of ₹3,631 crore in the first quarter of current financial year (Q1FY26) marking a decline of 2.5% from ₹3,724 crore in the same period last year.

Power Grid's revenue from operations rose nearly 2% in April-June period to ₹11,196 crore from ₹11,006 crore in the year-ago period.

The company reported weak operational performance as its earnings before interest, taxes, depreciation, and amortisation (EBITDA) also known as operating profit fell 5% to ₹9,147 crore and its operating profit margin contracted by 560 basis points to 81.69% from 87.25% in the corresponding period last year.

During the quarter, company got an approval for formation of Joint Venture Company in India between Power Grid and Nepal Electricity Authority (NEA) with 51% and 49% equity participation respectively for Implementation of Indian Portion of 400 kV D/C Inaruwa (Nepal) – New Purnea (India) and 400 kV D/C Lamki (Dododhara) (Nepal) - Bareilly (India) Transmission interconnections between India and Nepal, Power Grid said in a regulatory filing.

The company also got an approval for winding up of RINL Powergrid TLT Private Limited, a Joint Venture Company between Power Grid and Rashtriya Ispat Nigam Limited, from the records of the Registrar of Companies, Ministry of Corporate Affairs, subject to such approvals, as may be required, from regulators including Govt. authorities, if any.

Last month, the company announced acquisition of MEL Power Transmission (MPTL), a project-specific special purpose vehicle (SPV), established under the tariff-based competitive bidding (TBCB) route by PFC Consulting Limited.

MPTL will be acquired at the aggregate value of about ₹8.53 crore including 10,000 equity shares at par at Rs. 10/- each along with assets and liabilities of MPTL as on the acquisition date. MPTL shall be engaged in the business of transmission of power. The company is yet to start the commercial operation, as such no turnover has been recorded during the last three years.

As of 3:18 pm, Power Grid shares traded 1.13% lower at ₹289.85 post earnings announcement.