Power Grid Shares Plunge 5% to One-Month Low Amid Revenue Shortfall

Power Grid Corporation of India Shares Plummet to One-Month Low

The shares of Power Grid Corporation of India (PGCIL) plummeted by up to 5% on Monday, hitting an over one-month low. This decline was triggered by the company's report of a decline in revenue for the March quarter and a failure to meet estimates on the top line and operating profit.

During the session, the stock price declined to Rs 290.20 per share on the National Stock Exchange (NSE), a notable drop from its previous rise of nearly 2% in the previous two trading sessions. Trading volume in the counter surged, more than doubling that of the previous session.

Despite the decline in stock price, the state-owned power transmission company reported a notable 9.7% rise in consolidated net profit for the March quarter. According to brokerage Motilal Oswal Financial Services, this increase in profit was primarily driven by a deferred tax asset of Rs 5,280 crore. However, revenue and operating profit fell short of the brokerage's estimates.

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The company's financial performance for the quarter ended March 2026 showed a net profit of Rs 4,546.3 crore, a notable increase from Rs 4,143 crore in the corresponding period last year. The company attributed the growth in profit after tax to the remeasurement of deferred tax balance.

However, other aspects of the company's financial performance were less encouraging. Revenue from operations fell by 5% to Rs 11,666 crore from Rs 12,275 crore a year earlier. Additionally, other expenses rose to Rs 1,899 crore from Rs 1,283 crore in the year-ago period. The company's operating margin contracted to 78% from 83% in the corresponding quarter last fiscal.

A comparison of the company's performance with brokerage estimates is as follows:

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According to Informist, while the company's net profit was above Street expectations, revenue missed estimates by a wider margin. JM Financial Ltd, a brokerage firm, expects the company's capital expenditure and capitalisation in 2025-26 to remain in a similar range.