Power Grid Corp shares drop 4% after flat Q1 performance; capex growth potential ahead?

State-owned power transmission firm Power Grid Corporation shares dropped more than 3% during the morning market hours on Thursday, August 6, as investors focused on the flat earnings performance of the company in the April to June quarter results for the financial year 2026-27.

Maharatna PSU Power Grid Corp shares declined 4% to their intraday low of ₹270.50 apiece on Thursday’s market, compared to ₹281.75 apiece at the previous stock market session, according to NSE data.

After the intraday low, the company shares were trading 3.4% lower at ₹271.95 apiece during the trading session on August 6.

How did Power Grid Corp perform in Q1 earnings?

Power Grid Corp recorded a 0.8% decline in its consolidated net profit to ₹3,598 crore for the April to June quarter of the financial year 2026-27, in comparison to ₹3,631 crore in the same period a year earlier.

Amid the 2.6% flat Q1 revenue growth, the company's earnings were also impacted due to higher tax expenses in the period under review.

Data showed that the company’s tax expenses increased 1.7%, while the profits were also impacted by the movement in regulatory deferral account balances in the period.

Despite the subdued earnings growth, the company’s operational-level earnings before interest, tax, depreciation, and amortisation (EBITDA) advanced 4.2%, while the margins improved by 125 basis points in the June quarter.

Is there capex growth ahead?

Australia-based leading investment firm Macquarie Group analysts said that Power Grid Corp recorded a ‘steady’ start in the April to June quarter results of FY27, and the key focus will remain on the company management’s capital expenditure (capex) guidance in the upcoming earnings call.

The State-run company is set to hold its earnings call on Friday, August 7, where the senior management personnel will discuss the business performance in the period under review, along with the outlook for the upcoming period. The earnings call will start at 11:00 am (IST) on Friday.

“We expect Power Grid’s capex/capitalisation to pick up going forward,” said Macquarie analysts. “There is further comfort from ~ ₹1.7tn of work-in-hand,” they said.

Investment plan

On August 5, the state-run company’s board of directors approved a reconductoring project in Tirunelveli – Udumalpet and Pugalur – Madurai 400kV D/c lines with HTLS conductors.

As per the exchange filing, the estimated ₹856.94 crore cost for the project will be booked under additional capex, and the same is projected to be commissioned within 24 months from the date of allocation.

“At an estimated cost of ₹856.94 crore, scheduled to be commissioned within 24 months from the date of allocation of the project, i.e. by February 11, 2028,” the company informed the stock exchanges.

Power Grid Corp share performance

Power Grid Corp shares have delivered more than 108% returns on their investments in the last five years, and over 47% gains to investors in the last three years, according to NSE data.

However, the exchange data showed that the company shares have lost around 4% in the past one-year period.

On a year-to-date (YTD) basis, the company shares have risen 2.6% in the current year, but the stock has lost 4% in one month and was trading 4.1% lower in the last five market sessions.

Shares of Power Grid Corp surged to their 52-week high of ₹324.95 apiece on April 27, 2026, while the 52-week low was at ₹250 apiece on February 2, 2026. The company’s market capitalisation (m-cap) was at over ₹2.53 lakh crore as of the trading session on Thursday, August 6, 2026.