Power Grid of India (POWERGRID) Q4 25/26 earnings summary

Executive summary

• Exceeded CapEx and capitalization guidance for FY26, with CapEx reaching INR 40,000 crore and capitalization at INR 28,206 crore, and maintained strong system availability at 99.84%.

• Achieved several industry firsts, including commissioning Asia's first transformer with synthetic ester oil, India's first insulated cross-arm at 400 kV, a 765 kV digital substation, and secured a maiden BESS project.

• Expanded internationally with PPP projects in Kenya and opportunities in Uganda, Zimbabwe, Mozambique, and Africa, and merged multiple SPVs to streamline structure.

• Focused on technology adoption, grid reliability, and sustainability, including AI-based monitoring, green energy integration, and ESG milestones such as 50% RE electricity consumption and 90% zero waste to landfill.

• Board approved divestment of equity stake in CTUIL and sale of stakes in certain JVs, with major internal mergers completed.

Financial highlights

• Total income for FY26 was INR 47,684 crore (consolidated), up from INR 27,459 crore in FY25, with net profit after tax at INR 15,928 crore, a 3% YoY increase; standalone PAT at INR 15,921 crore, up 4%.

• EBITDA margin remained robust, with consolidated EBITDA at INR 39,677 crore and operating margin at 85%.

• Earnings per share (EPS) for FY26 was INR 17.13 (consolidated), including regulatory deferral.

• Gross fixed assets reached INR 3,20,334 crore; consolidated net worth at INR 1,00,494 crore; debt-equity ratio at 1.47.

• Telecom revenue grew to INR 1,195 crore; consultancy revenue rose to INR 1,755 crore.

Outlook and guidance

• CapEx guidance for FY27 is INR 37,000 crore, with expectations to exceed targets; FY28 CapEx projected at INR 40,000–45,000 crore, and capitalization guidance at INR 30,000 crore for FY27 and INR 35,000 crore for FY28.

• Multi-year visibility with INR 1.7 lakh crore of projects in hand and INR 1.1 lakh crore in the bidding pipeline.

• Long-term sector opportunity estimated at INR 7.9 lakh crore by 2036, with some sources citing over INR 15 lakh crore, driven by renewable integration and new demand centers.

• Management assessed new labour codes as not material and expects continued stability in regulatory income.