Power Grid share price slips 4% on weak Q3 performance; details here

Power Grid's consolidated profit dropped 4.1 per cent year-on-year (Y-o-Y) to Rs 3,861.6 crore in the December quarter of financial year 2025 (Q3FY25), from Rs 4,028.3 crore in Q3FY24

Power Grid share price: Power Grid announced a weak set of December quarter of financial year (Q3FY25) results on Monday, February 3, 2025, post-market hours. 

 

Following this, on Tuesday, Power Grid share price slipped as much as 4.08 per cent to hit an intraday low of Rs 272.30. It was also the top loser on the BSE Sensex index.

 

However, at 9:45 AM, Power Grid share was off day’s low, and was trading 1.88 per cent lower at Rs 278.55 per share. In comparison, BSE Sensex was trading 0.91 per cent higher at 77,890.78 levels.

 

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

 

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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.

 

Additionally, the Board approved an investment of Rs 370 crore for the 400kV Vindhyachal PS – Sasan D/C Line at Hindalco Switchyard, scheduled for commissioning by December 2026.

 

Despite the weak Q3 show, ICICI Securities analysts said that the transmission opportunity over the next 5 years is major given the strong generation capacity addition programme and Power Grid will be one of the key beneficiaries. 

 

Therefore, analysts at ICICI Securities said that they await the company’s guidance in terms of capacity addition over the next 3-5 years, and suggest using any major corrections to add the stock. 

From a technical viewpoint, Jigar S Patel, senior manager of equity research at Anand Rathi said, Power Grid is showing weakness as it forms lower lows on the daily chart, indicating a bearish trend. Currently, it has taken support around Rs 272, aligning with the June 2024 low.  "A decisive close above Rs 282 could trigger fresh buying momentum, potentially driving the price towards Rs 310. However, if the stock breaks below Rs 272, it may lead to panic selling, pushing prices lower toward Rs 260. Traders should watch these key levels for confirmation of the next move. A breakout above Rs 282 suggests strength, while a breakdown below Rs 272 could accelerate the decline," Patel added.

 

Power Grid primarily focuses on the transmission of electricity through its EHVAC/HVDC network. Additionally, the company has expanded into the telecom sector by utilising its extensive Pan-India transmission infrastructure, incorporating the installation of Optical Ground Wire (OPGW).

 

Last checked, Power Grid market capitalisation stood at Rs 2,60,835 crore, according to BSE.