PowerGrid Q1FY26 results: Profit slips 2.5% to ₹3,630 cr on higher expenses

PowerGrid reported a rise in income to ₹11,444 crore; Board clears ₹55,000 crore fundraising and key JV, asset expansion plans

State-run Power Grid Corporation reported a marginal decline in consolidated net profit for the first quarter of FY26, primarily due to an increase in total expenses.

 

The company posted a net profit of ₹3,630.58 crore for the quarter ended June 30, 2025, a 2.5 per cent drop from ₹3,723.92 crore in the same quarter last year, according to a filing with the Bombay Stock Exchange (BSE).

 

Despite the dip in profit, total income rose to ₹11,444.42 crore, compared to ₹11,279.59 crore a year earlier. Total expenses climbed to ₹7,114.23 crore from ₹6,643.07 crore in the year-ago quarter.

Board approves higher borrowing

PowerGrid’s Board has approved raising its borrowing limit for FY26 from ₹16,000 crore to ₹25,000 crore. The funds will be sourced from various channels, including private placement of non-convertible debentures, according to a Press Trust of India report.

 

 

For FY27, the Board also cleared a fundraising plan of up to ₹30,000 crore through domestic bonds or other routes, in one or more tranches.

Green light for project participation

The Board gave in-principle approval for PowerGrid to participate in up to two tariff-based competitive bidding (TBCB) projects along with POWERGRID Infrastructure Investment Trust (PGInvIT), at a combined estimated cost of ₹500 crore.

 

It also approved the sale of PowerGrid’s entire equity in Parbati Koldam Transmission Company Ltd, a joint venture with India Grid Trust.

 

The company received approval to form new joint ventures with the Nepal Electricity Authority (NEA) to develop cross-border transmission infrastructure between India and Nepal.

 

Additionally, the Board granted in-principle approval to wind up RINL POWERGRID TLT Pvt Ltd, a joint venture with Rashtriya Ispat Nigam Ltd. The winding-up will follow regulatory clearance and removal from the Registrar of Companies' records.

Capital expenditure and asset base

PowerGrid reported capital expenditure of ₹6,981 crore on a consolidated basis for Q1FY26.

 

As of June 30, 2025, the company’s gross fixed assets, including lease receivables, stood at ₹2,92,446 crore. Its network comprised 1,80,533 circuit kilometres of transmission lines, 284 substations, and a transformation capacity of 5,66,831 MVA across India.

 

The company maintained a high average transmission system availability of 99.84 per cent during the quarter.