Power Grid shares fall over 5% on reporting weak operational performance in March quarter

Shares of the country's largest transmission utility company Power Grid Corporation dropped as much as 5.11% to hit an intraday low of ₹290.20 on Monday, May 18, after its reported weak operational performance in fourth quarter of financial year 2025-26.

Power Grid post market hours on Friday said that it earned a net profit of ₹4,552.80 crore in January-March quarter, marking an increase of 5% from ₹4,336 crore in the same period last financial year.

The company's revenue from operations declined 9% to ₹9,971 crore at the end of March quarter from ₹10,983 crore in the year-ago period.

Power Grid reported a weak operational performance as its earnings before interest, taxes, depreciation, and amortization (EBITDA) also known as operating profit declined 19% to ₹7,501 crore and its EBITDA margin contracted by 8.7 percentage points.

At the end of financial year 2025-26 the company had gross fixed assets worth ₹3 lakh crore, 1,84,960 circuit kilometres (CKM) in transmission lines and a transformation capacity of 6,24,016 MVA. The company added 4,765 CKM in transmission lines in FY26 compared with 4,054 CKM in FY25. It also added 72,055 MVA of transformation capacity.

The company's capex at the end of financial year came in at ₹39,967 crore compared with its committed capex of ₹35,000 crore.

Its board of directors gave in principle approval or divestment of entire equity stake in Central Transmission Utility of India Limited (CTUIL) a wholly owned subsidiary of the parent company to Grid Controller of India Limited.

The board also gave approval for stake sale in joint ventures like Torrent Power Grid Limited, Sikkim Power Transmission Limited and Parbati Koldam Transmission Company.

As of 2:10 pm, Power Grid shares traded 3.6% lower at ₹295, underperforming the NIFTY50 index which was down 0.13%.