Power Grid Q1 FY26: Revenue Miss, Stock Slides 5%

Stock slips after a soft top line

Power Grid Corporation of India Ltd (NSE: POWERGRID, BSE: 532898) saw its shares come under pressure after its latest results highlighted a miss on revenue and operating profit estimates. The stock fell as much as 5 percent in a session to an over one-month low, with the NSE price reported at ₹290.20 during the move. The decline followed two sessions of gains of nearly 2 percent, making the reversal more pronounced.

On 25 June 2026, the stock was quoted around ₹283.90 on the NSE, down ₹7.00 or 2.41 percent, and ₹283.95 on the BSE, down ₹6.85 or 2.36 percent. The day’s trading range included a high near ₹291.5 and a low near ₹283.05. The 52-week range reported for the stock was roughly ₹250 to ₹324.95.

What triggered the sell-off

The sell-off was linked to disappointment on the top line and operating profitability, even as headline profit was higher than some market expectations. Brokerage commentary cited in the report said revenue and operating profit were below estimates, while net profit was helped by a deferred tax item.

Motilal Oswal Financial Services attributed the rise in profit in the March 2026 quarter to a deferred tax asset of ₹5,280 crore. Another report cited by Informist said net profit was above Street expectations, but revenue missed estimates by a wider margin. JM Financial was quoted as expecting the company’s capital expenditure and capitalisation in 2025-26 to remain in a similar range.

March 2026 quarter: profit up, revenue down

For the quarter ended March 2026, Power Grid reported consolidated net profit of ₹4,546.3 crore, compared with ₹4,143 crore in the corresponding period a year earlier, a rise of about 9.7 percent. The company said the remeasurement of deferred tax balance supported profit after tax.

At the same time, revenue from operations fell 5 percent to ₹11,666 crore from ₹12,275 crore a year earlier. Operating margin was reported to have contracted to 78 percent from 83 percent in the corresponding quarter last fiscal. This combination of weaker revenue and lower margins, despite higher profit, shaped investor reaction.

June 2025 quarter (Q1): mixed operating picture

Separately, quarterly data for the period ended June 2025 showed total revenue of ₹11,196.22 crore, up 1.73 percent year-on-year from ₹11,006.18 crore (all figures in ₹ crore unless stated). Operating income for the quarter stood at ₹6,016.27 crore versus ₹6,402.08 crore a year earlier, reflecting a decline on a year-on-year basis.

Net income for the June 2025 quarter was reported at ₹3,417.76 crore, compared with ₹3,786.24 crore in the year-ago quarter. Diluted normalised EPS for the quarter was ₹3.90 versus ₹4.00 a year earlier.

A separate filing-based summary also stated that consolidated net profit for the quarter ended June 30, 2025 was ₹3,630.58 crore, down 2.5 percent from ₹3,723.92 crore a year earlier. In that summary, total income rose to ₹11,444.42 crore from ₹11,279.59 crore, while total expenses increased to ₹7,114.23 crore from ₹6,643.07 crore.

Cost and expense trends visible in the quarterly table

In the June 2025 quarter table, total operating expense was ₹5,179.95 crore versus ₹4,604.10 crore in the year-ago quarter. Depreciation and amortisation was ₹3,130.47 crore versus ₹3,200.39 crore. Selling, general and administrative expenses were ₹640.57 crore versus ₹617.36 crore.

Other operating expenses total rose sharply year-on-year to ₹1,408.91 crore from ₹786.35 crore. The operating income line in the same table showed ₹6,016.27 crore for June 2025 compared with ₹5,770.98 crore in March 2026 and ₹6,402.08 crore in June 2024.

Key numbers at a glance

Recent returns and technical context

The past-return snapshot provided for Power Grid showed: 1 week -0.86 percent, 1 month -4.89 percent, 3 months -3.76 percent, 6 months 6.95 percent, 1 year -2.26 percent, and 3 years 51.35 percent. Another technical note stated that Powergrid attempted a V-shaped recovery but faced stiff resistance near ₹300, keeping the stock under short-term pressure.

These numbers place the late-June decline in the context of a stock that has been range-bound and sensitive to earnings surprises. The reported fall also came alongside an earnings-per-share data point of ₹3.90 for the last quarter versus an estimate of ₹4.15, described as a negative surprise of 6.02 percent.

Market impact: what investors focused on

The market reaction suggests investors gave higher weight to the revenue shortfall and margin contraction than to headline profit growth. Where profit strength is linked to deferred tax remeasurement, investors often look through it to assess operating momentum, which in this case was pressured by lower revenue and weaker operating profitability.

At the same time, the stock’s move indicates that expectations on operating profit and top-line delivery were important reference points. Commentary cited in the report underlined this, noting that revenue missed estimates by a wider margin, even as net profit exceeded expectations.

Why the results matter for a regulated utility

For a state-run transmission business, the market tends to track stability in revenue, operating margin, and the pace of capex and capitalisation because these can shape future earnings visibility. With the stock reacting to a revenue miss and margin compression, the focus moves to whether operational performance improves in subsequent quarters and how capex and capitalisation track through 2025-26.

Brokerage commentary cited in the report pointed to expectations of capex and capitalisation staying in a similar range in 2025-26. Investors will also watch for clarity on the persistence of non-operating items that supported profits in the March quarter.

Conclusion

Power Grid’s share price weakness followed a revenue miss and lower operating margin in the March 2026 quarter, even as reported profit rose with support from deferred tax remeasurement. With the stock near an over one-month low and facing resistance around ₹300, the next set of quarterly numbers and capex updates are likely to remain key catalysts for investor positioning.