Power Grid shares drop 3% after mixed Q2 results; should you sell or hold?

Power Grid shares fell 3 per cent as analysts remained mixed after the company's net profit fell 6 per cent Y-o-Y for the second quarter

Shares of Power Grid fell over 3 per cent on Tuesday as analysts remained mixed after the company's net profit fell 6 per cent year-on-year (Y-o-Y) for the September quarter. 

 

The company's stock fell as much as 3.25 per cent during the day to ₹278.65 per share, the lowest level since September 1 this year. The Power Grid stock pared losses to trade 2.7 per cent lower at ₹280.1 apiece, compared to a 0.25 per cent advance in Nifty 50 as of 10:50 AM. 

 

Shares of the company fell for the fourth straight session and currently trade at 3 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 9.2 per cent this year, compared to a 8.6 per cent advance in the benchmark Nifty 50. Power Grid has a total market capitalisation of ₹2.6 trillion. 

 

Power Grid Q2 earnings

Power Grid Corp reported a 5.98 per cent decline in net profit to ₹3,566.08 crore for the quarter ended September 2025, compared with ₹3,793.02 crore in the corresponding quarter last year. Revenue from operations rose 1.76 per cent to ₹11,475.95 crore in the September 2025 quarter from ₹11,277.76 crore in the same period a year ago.

 

Ebitda came in at ₹9,100 crore, down 6 per cent year-on-year (Y-o-Y), impacted by an increase of ₹740 crore in other expenses. The Ebitda margin fell to 79.4 per cent in the quarter from 86 per cent in the year-ago period, primarily due to higher costs.  ALSO READ | Hitachi Energy shares soar 16% on Q2FY26 results; check key details inside

Analysts on Power Grid Q2 results

JM Financial said Power Grid Corp reported in-line revenue for the second quarter of FY26, though Ebitda and adjusted profit after tax (PAT) missed estimates by 5 per cent and 14 per cent, respectively, due to a sharp 77 per cent year-on-year rise in other expenses.

 

Revenue for the quarter stood at ₹11,500 crore, up 2 per cent year-on-year and marginally below JM Financial’s and consensus estimates. 

 

However, Motilal Oswal said that Power Grid reported weaker-than-expected earnings for the second quarter of FY26, as higher other expenses weighed on performance. Reported profit after tax came in at ₹3,550 crore, 4 per cent below estimates, declining 4 per cent year-on-year and 3 per cent quarter-on-quarter. 

 

The brokerage noted that the profit was supported by higher-than-expected other income, lower depreciation, likely due to reduced capitalisation, and a positive net movement of ₹520 crore in regulatory deferral account balances. The brokerage has a 'Buy' rating on the stock with a target price of ₹288 per share.