Power Grid Corporation of India Ltd.Profit Flat, Capitalisation 3x

POWERGRID reported Q1 FY27 consolidated profit after tax of ₹3,598 Cr against ₹3,631 Cr, even though capitalisation was ₹5,277 Cr, about 3.1 times the ₹1,683 Cr earlier.

Transmission charges rose 3% to ₹10,905 Cr and total income to ₹11,697 Cr. Management attributed the flat profit to a regulatory drag of about ₹560 Cr: ₹330 Cr from lower depreciation and interest components as older assets age, and ₹230 Cr from lower interest earned while awaiting tariff orders. Without it, profit would have been about ₹247 Cr higher. FY27 guidance of ₹37,000 Cr capex and ₹30,000 Cr capitalisation was reiterated, with Q1 capex more than 10% above last year.

Works in hand are ₹1.75 lakh Cr and the bidding pipeline ₹1.19 lakh Cr; POWERGRID won 6 of 19 projects, including its first synchronous condenser. Collections were 104% of billing and receivable days fell to about 12. Management said it will examine a separate TBCB profit disclosure and has filed petitions to build battery storage on regulated returns.