Power Grid Corp rises 3% after board clears merger of 28 subsidiaries

Power Grid Corporation of India shares rose 2.7 per cent in trade on the BSE, logging an intra-day high at ₹304.85 per share. At 12:53 AM, Power Grid’s share price was trading 1.58 per cent higher at ₹301.3 per share. In comparison, BSE Sensex was up 0.89 per cent at 74,865.05.

 

The buying on the counter came after the board approved the merger of 28 subsidiaries into two other subsidiaries, expanding the scope of an earlier restructuring plan aimed at simplifying its group structure.

 

The move supersedes an earlier proposal approved on December 20, 2025, under which 11 subsidiaries were to be merged into two other subsidiaries.

 

 

Power Grid had earlier said the merger plan was intended to consolidate businesses into larger unified entities, reduce the number of entities within the group, improve operational and management efficiencies, and simplify administrative processes and organisational structure.  READ | Vodafone Idea shares gain 5% after subscriber attrition slows in Jan 2026 

The company did not disclose the names of the subsidiaries involved or the financial impact of the merger in the filing. It said further developments would be intimated in due course.

 

Additionally, the board also approved an investment of ₹705.3 crore for the procurement of cold spare transformers and reactors.

 

The company said its board cleared the proposal at a meeting held on Thursday for the project titled “Procurement of cold spare Transformers & Reactors approved in 77th NRPC”.

 

The project is scheduled to be implemented within 30 months from the date of investment approval.

 

That apart, in Q3, Power Grid’s consolidated profit dropped 4.1 per cent year-on-year (Y-o-Y) to ₹3,861.6 crore in the December quarter of financial year 2025 (Q3FY25), from ₹4,028.3 crore in the same quarter last year (Q3FY24).

 

The company’s revenue dropped 2.7 per cent Y-o-Y to Rs 11,233 crore in Q3FY25, from Rs 11,549.8 crore in Q3FY24. 

 

At the operating front, earnings before interest, tax, depreciation and amortisation (Ebitda) tanked 6.6 per cent annually to Rs 9,538 crore in Q3FY25, from Rs 10,212.9 crore in Q3FY24. Subsequently, Ebitda margin squeezed 350 bps to 84.9 per cent in Q3FY25, from 88.4 per cent in Q3FY24. 

 

The company declared a second interim dividend of Rs 3.25 per share for FY25. February 7 has been fixed as the record date for the dividend.