POWERGRID Q2 profit rises 8% as offsets curb income growth

POWERGRID reported consolidated profit after tax of Rs 3,867 crore in Q2 FY27, up 8% from Q2 FY26, even as Rs 354 crore of regulatory impact and Rs 193 crore of non-recurring items reduced a Rs 887 crore increase in operating income to a Rs 340 crore net increase.

Why did POWERGRID’s operating-income growth slow in Q2 FY27?

POWERGRID’s operating-income bridge shows that regulatory and non-recurring items reduced the pre-offset increase from 7.7% to a net 2.9% in Q2 FY27. Operating income initially increased by Rs 887 crore, including Rs 994 crore identified as an increase in transmission income only. Regulatory impact then reduced the movement by Rs 354 crore, while non-recurring items reduced it by another Rs 193 crore.

Together, the two deductions totalled Rs 547 crore and left a Rs 340 crore net increase in operating income. The presentation does not provide a line-by-line reconciliation between the Rs 994 crore transmission-income movement in this bridge and the Rs 455 crore year-on-year rise in reported consolidated transmission charges.

Consolidated operating expenses rose 6% year on year to Rs 1,889 crore in Q2 FY27 from Rs 1,790 crore. The presentation notes that operating expenses include movement in the regulatory deferral balance, excluding deferred tax assets for deferred tax liabilities, meaning this cost line includes regulatory accounting movement as well as operating expenses.

How did POWERGRID’s Q2 FY27 profit change?

POWERGRID’s consolidated profit after tax rose by Rs 301 crore to Rs 3,867 crore in Q2 FY27 from Rs 3,566 crore in Q2 FY26. Profit before tax increased by Rs 326 crore, or 7%, to Rs 4,776 crore, while net tax expense rose 3% to Rs 909 crore from Rs 884 crore.

The separate profit bridge attributes a Rs 322 crore, or 9.0%, increase in profit after tax to the initial movement, adds Rs 60 crore of regulatory impact and deducts Rs 82 crore for non-recurring items. These items result in Rs 300 crore, which the presentation labels “Net Increase in PBT”; the slide does not explain that label or its difference from the Rs 301 crore reported increase in profit after tax.

Depreciation fell 1% to Rs 3,196 crore from Rs 3,223 crore, while finance cost rose 2% to Rs 2,191 crore from Rs 2,148 crore. POWERGRID’s share of joint-venture profit or loss also improved, with a Rs 3 crore loss in Q2 FY27 compared with a Rs 59 crore loss a year earlier.

Which consolidated income lines changed from Q2 FY26?

POWERGRID’s consolidated total income rose 3% year on year to Rs 12,055 crore in Q2 FY27 from Rs 11,670 crore. Transmission charges, the largest reported income line, increased 4% to Rs 11,191 crore from Rs 10,736 crore, while other income rose 23% to Rs 239 crore from Rs 194 crore.

Consultancy-services income declined 20% to Rs 396 crore from Rs 492 crore, and telecom income declined 8% to Rs 229 crore from Rs 248 crore. The contrasting segment movements meant transmission charges accounted for the principal increase in reported income despite declines in the consultancy and telecom lines.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 3% year on year to Rs 10,166 crore and 6% sequentially from Rs 9,612 crore in Q1 FY27. Sequential operating expenses declined 9% from Rs 2,085 crore, although finance cost increased 8% from Rs 2,023 crore.

How did POWERGRID perform in H1 FY27?

POWERGRID’s consolidated profit after tax for H1 FY27 rose 4% to Rs 7,465 crore from Rs 7,197 crore in H1 FY26, a slower rate than the 8% increase reported for Q2 alone. Total income increased 3% to Rs 23,752 crore, while EBITDA increased 1% to Rs 19,778 crore.

H1 FY27 transmission charges rose 3% to Rs 22,096 crore from Rs 21,356 crore. Operating expenses increased 11% to Rs 3,974 crore from Rs 3,591 crore, exceeding the percentage increase in total income over the half year.

Profit before tax before the share of joint ventures increased 2% to Rs 9,240 crore from Rs 9,088 crore. Finance cost rose 3% to Rs 4,214 crore, while depreciation was broadly unchanged at Rs 6,324 crore compared with Rs 6,354 crore in H1 FY26.

What did collections and balance-sheet figures show?

POWERGRID collected Rs 22,806 crore against Rs 22,327 crore billed in H1 FY27, producing a 102.1% realisation rate. Billing increased from Rs 18,248 crore in H1 FY26 and realisation increased from Rs 18,737 crore, although the realisation rate declined from 102.7%.

Dues beyond 45 days fell to Rs 1,285 crore at the end of Q2 FY27 from Rs 1,512 crore at the end of Q2 FY26 and Rs 1,458 crore at the end of Q1 FY27. Receivable days for these dues declined to 10.54 from 15.16 a year earlier and 12.11 in the preceding quarter.

Consolidated debt was Rs 1,51,207 crore as of 30 September 2026, compared with Rs 1,35,923 crore a year earlier. Consolidated net worth rose to Rs 1,06,748 crore from Rs 98,932 crore, while the debt-to-equity mix moved to 59:41 from 58:42.

POWERGRID reported Rs 55,419 crore of consolidated capital work in progress, including construction advances, as of 30 September 2026, versus Rs 47,782 crore a year earlier. Works in hand were about Rs 2.20 lakh crore, including Rs 1.95 lakh crore of tariff-based competitive bidding projects, which accounted for 89% of the total.

Conclusion

POWERGRID’s Q2 FY27 performance combined an 8% increase in consolidated profit after tax to Rs 3,867 crore with a 2.9% net increase in operating income in its bridge. The distinction reflects Rs 547 crore of regulatory and non-recurring offsets against the Rs 887 crore initial operating-income increase, while reported transmission charges rose 4% to Rs 11,191 crore.

Next disclosures can show whether regulatory and non-recurring movements continue and how works in hand convert into operating assets. POWERGRID also said the Pang evacuation scheme was being changed to a 3.75 gigawatt extra-high-voltage alternating-current system, discussed at the 44th NCT meeting on 29 October 2026, while Green Energy Corridor-III has a FY 2032-33 completion target.