POWERGRID Q2 profit rises 8% as transmission revenue grows

Power Grid Corporation of India Limited reported consolidated profit of Rs 3,866.16 crore for the quarter ended 30 September 2026, up 8% from Rs 3,566.08 crore a year earlier. POWERGRID’s revenue from operations rose to Rs 11,816.22 crore, with higher transmission revenue and lower other expenses outweighing increased finance costs.

How much did POWERGRID’s Q2 profit increase?

POWERGRID’s consolidated profit increased by Rs 300.08 crore, or about 8%, year on year in the quarter ended 30 September 2026. Profit for the period was Rs 3,866.16 crore, compared with Rs 3,566.08 crore in the quarter ended 30 September 2025 and Rs 3,598.42 crore in the preceding quarter ended 30 June 2026.

Profit before tax and regulatory deferral account balances rose to Rs 4,568.44 crore from Rs 3,878.17 crore a year earlier. The measure was marginally below Rs 4,587.32 crore in the June 2026 quarter, while the net regulatory-deferral movement changed to income of Rs 94.14 crore from an expense of Rs 106.16 crore in the preceding quarter.

Earnings per equity share including regulatory deferral account movements were Rs 4.16 for the September 2026 quarter, compared with Rs 3.84 a year earlier. The quarterly figure was not annualised, and paid-up equity share capital was unchanged at Rs 9,300.60 crore on 30 September 2026.

What drove POWERGRID’s revenue growth?

POWERGRID’s transmission segment drove the increase, with segment revenue including allocable other income rising to Rs 11,206.75 crore from Rs 10,721.76 crore a year earlier. The Rs 484.99 crore rise in transmission revenue exceeded the Rs 340.27 crore increase in consolidated revenue from operations, as consultancy and telecom revenue declined.

For projects with tariffs determined by the Central Electricity Regulatory Commission, or CERC, POWERGRID recognised Rs 9,127.64 crore of transmission income under tariff orders in the September 2026 quarter, against Rs 9,018.16 crore a year earlier. It recognised another Rs 588.30 crore provisionally for assets awaiting tariff orders, up from Rs 485.26 crore; CERC’s 2024 tariff regulations cover the 2024-29 tariff block.

Consultancy revenue declined to Rs 520.46 crore from Rs 614.40 crore, while telecom revenue decreased to Rs 283.33 crore from Rs 291.06 crore. Total income, which includes other income, nevertheless increased to Rs 12,055.11 crore from Rs 11,670.24 crore in the quarter ended 30 September 2025.

Which costs changed for POWERGRID in the second quarter?

POWERGRID’s other expenses declined enough to offset increases in finance and employee costs during the September 2026 quarter. Other expenses fell by Rs 301.84 crore to Rs 1,392.33 crore from Rs 1,694.17 crore, taking total expenses down to Rs 7,483.09 crore from Rs 7,733.40 crore.

Finance costs rose to Rs 2,191.34 crore from Rs 2,148.07 crore, and employee-benefit expense increased to Rs 703.89 crore from Rs 668.04 crore. Depreciation and amortisation declined to Rs 3,195.53 crore from Rs 3,223.12 crore, helping profit before the share of joint-venture results, tax and regulatory balances rise to Rs 4,572.02 crore from Rs 3,936.84 crore.

POWERGRID recorded a Rs 3.58 crore loss from joint ventures accounted for using the equity method, compared with a Rs 58.67 crore loss a year earlier. Current-year tax increased to Rs 759.22 crore from Rs 701.01 crore, but total tax expense declined to Rs 796.42 crore from Rs 829.36 crore.

How did regulatory balances affect POWERGRID’s profit?

POWERGRID recorded Rs 94.14 crore of net income from regulatory deferral account balances after tax in the September 2026 quarter. This contribution was Rs 423.13 crore lower than the Rs 517.27 crore recorded in the year-earlier quarter, meaning the rise in reported profit was principally associated with operating income and expense movements before regulatory balances.

The company states that regulatory deferral account balances primarily include foreign-exchange differences on foreign-currency monetary items, to the extent these amounts are recoverable from or payable to beneficiaries in subsequent periods. In the half year ended 30 September 2026, the net regulatory movement was an expense of Rs 12.02 crore, compared with income of Rs 730.09 crore in the corresponding previous half year.

POWERGRID also states that deferred tax recognised on transmission income is treated as deferred assets against deferred tax liability and is reversed when the corresponding liability becomes current tax. The company linked a significant impact in the fourth quarter of the year ended 31 March 2026 to remeasurement following the Finance Act, 2026 and its expected transition to the new tax regime under the Income-tax Act, 2025.

What do POWERGRID’s half-year results and balance sheet show?

POWERGRID reported consolidated profit of Rs 7,464.58 crore for the half year ended 30 September 2026, compared with Rs 7,196.66 crore a year earlier. Revenue from operations increased to Rs 23,312.94 crore from Rs 22,672.17 crore, while total income rose to Rs 23,751.83 crore from Rs 23,114.66 crore.

Transmission segment revenue for the half year rose to Rs 22,135.91 crore from Rs 21,416.42 crore, and transmission profit before interest and tax increased to Rs 13,099.03 crore from Rs 12,744.61 crore. Consultancy revenue increased to Rs 1,039.19 crore from Rs 1,020.32 crore, whereas telecom revenue fell to Rs 535.10 crore from Rs 580.55 crore.

Total assets stood at Rs 3,01,345.51 crore on 30 September 2026, up from Rs 2,94,727.26 crore at 31 March 2026. Capital work-in-progress rose to Rs 51,035.65 crore from Rs 43,654.29 crore, while total borrowings increased to Rs 1,51,207 crore from Rs 1,48,009.01 crore over the same period.

Conclusion

POWERGRID’s September-quarter result combined higher transmission revenue, a Rs 301.84 crore reduction in other expenses and a smaller joint-venture loss to produce a Rs 690.27 crore increase in profit before tax and regulatory balances. This occurred despite a Rs 43.27 crore rise in finance costs and a regulatory-deferral contribution that was Rs 423.13 crore below the year-earlier quarter.

Next, confirmation from the Regional Director remains awaited for merger applications involving wholly owned transmission subsidiaries that were filed on 3 September 2026. POWERGRID’s board also approved divestment of its entire equity stake in Central Transmission Utility of India Limited on 1 November 2026 and declared an interim dividend of Rs 3 per share for FY 2026-27.