Power Grid Q4 FY26: Profit up 9.7%, dividend ₹1.25

Key takeaway from the Q4 filing

Power Grid Corporation of India Ltd (POWERGRID) reported a year-on-year increase in consolidated net profit for the March quarter (Q4 FY26), while revenue and operating profitability declined. The company attributed the stronger bottom line to a much higher deferred tax credit in the quarter. Alongside the results, the board recommended a final dividend and cleared plans to raise funds via rupee term loans.

Q4 FY26 consolidated profit rises despite softer topline

For Q4 FY26, POWERGRID posted consolidated net profit of ₹4,546.33 crore, up from ₹4,142.87 crore in the same quarter last year. Another exchange update cited a 9.7% year-on-year increase, with profit at ₹4,546 crore versus ₹4,143 crore.

However, the topline picture was weaker. Total income for the quarter dipped to ₹11,970.69 crore from ₹12,590.80 crore a year ago. Revenue from operations was reported at ₹11,666 crore, down 5% from ₹12,275 crore in Q4 FY25.

Deferred tax credit was a major swing factor

The regulatory filing showed a large jump in deferred tax credit, which supported the quarter’s profit growth. POWERGRID reported deferred tax credit of ₹5,179.80 crore in Q4 FY26, compared with ₹19.98 crore in the year-ago quarter.

This shift matters because it can change reported net profit even when operating performance is under pressure. The same set of disclosures also showed revenue falling year-on-year in the quarter, highlighting that profit growth and revenue growth were not moving in tandem.

Operating metrics show margin pressure

Operating performance weakened on the reported consolidated highlights. EBITDA for Q4 FY26 was disclosed at ₹9,066 crore versus ₹10,224 crore in Q4 FY25, a decline of 11.3% year-on-year. Another highlight set put EBITDA at ₹9,049 crore versus ₹10,224 crore, with the same direction of change.

EBITDA margin narrowed to 77.7% from 83.3% a year ago (also reported as 77.6% versus 83.3%). The margin compression occurred alongside the revenue decline reported for the quarter.

FY26 performance: modest profit growth

For FY26 (fiscal year 2025-26), consolidated net profit rose to ₹15,927.95 crore from ₹15,521.44 crore in the previous year. Consolidated total income for FY26 was reported at ₹47,684.43 crore.

On a standalone basis, POWERGRID reported net profit of ₹15,921.00 crore for FY26 compared with ₹15,353.57 crore in FY25, on total income of ₹46,995.88 crore.

Standalone quarter numbers and EPS

The company’s standalone Q4 FY26 net profit was reported at ₹4,552.80 crore, compared with ₹4,336.17 crore in Q4 FY25. Standalone Q4 revenue (also described as Q4 revenue) was ₹11,954.70 crore versus ₹12,482.39 crore a year ago.

Earnings per share (EPS) for the quarter stood at ₹4.90, compared with ₹4.66 in the year-ago period.

Dividend announcement and shareholder approval

POWERGRID declared a final dividend of ₹1.25 per equity share of face value ₹10 each for FY26. The board recommendation is subject to shareholder approval at the upcoming Annual General Meeting, as disclosed.

Another disclosure in the provided text stated that the final dividend of ₹1.25 per share brings the full-year dividend to ₹9.00 per share.

Borrowings and fund-raising plan

The company approved a plan to raise up to ₹5,000 crore through rupee term loans.

Separately, consolidated total borrowings were reported to have increased from ₹130,000 crore as of March 31, 2025 to ₹148,000 crore as of March 31, 2026.

Summary table of reported figures

What investors typically track from this update

The quarter’s disclosures show two cross-currents. First, the company delivered year-on-year growth in reported profit for Q4 FY26, supported by a sharply higher deferred tax credit. Second, operating indicators cited in the same set of results point to pressure on revenue and EBITDA, with margins falling from the prior-year quarter.

Investors will also note the final dividend recommendation of ₹1.25 per share, and the board-approved plan to raise up to ₹5,000 crore through rupee term loans. In addition, the disclosed increase in consolidated borrowings between March 2025 and March 2026 provides context on the balance sheet alongside the year’s reported profitability.

Conclusion

POWERGRID’s Q4 FY26 results showed profit growth at the consolidated level even as revenue and operating margins weakened. The filing highlighted deferred tax credit as a key driver in the quarter’s profit rise, while the board recommended a final dividend of ₹1.25 per share and approved term-loan fund raising, subject to standard approvals and processes.