NEW DELHI — Power Grid Corporation of India Limited, India’s central power transmission utility and one of the country’s largest state-owned infrastructure companies, announced strong audited financial results for the financial year ended March 31, 2026, reporting steady profit growth, robust shareholder returns, and major strategic developments aimed at strengthening its long-term transmission business.
The company’s Board of Directors approved the FY26 financial statements during its meeting held on May 15 and recommended a final dividend of ₹1.25 per equity share, taking the total dividend payout for FY26 to ₹9 per share.
FY26 Financial Performance
On a standalone basis, POWERGRID reported a net profit of ₹15,921 crore for FY26, representing a 3.7% year-on-year increase from ₹15,353.57 crore recorded in FY25.
The company’s total comprehensive income rose to ₹16,066.78 crore, compared to ₹15,114.24 crore in the previous fiscal year, reflecting resilient operational performance despite moderate pressure on transmission revenues.
Revenue and Income
POWERGRID reported:
- Total Income (FY26): ₹46,995.88 crore
- Total Income (FY25): ₹46,325.32 crore
- Growth: 1.45% YoY
While revenue from core operations declined slightly, higher other income supported overall earnings growth.
- Revenue from Operations (FY26): ₹40,904.20 crore
- Revenue from Operations (FY25): ₹41,431.49 crore
Meanwhile, “Other Income” increased significantly:
- Other Income (FY26): ₹6,091.68 crore
- Other Income (FY25): ₹4,893.83 crore
Expenses and EPS
The company’s total expenses increased during the year due to higher finance costs, employee benefits, and operational expenditures.
- Total Expenses (FY26): ₹30,236.78 crore
- Total Expenses (FY25): ₹27,986.51 crore
- Increase: 8.04% YoY
POWERGRID’s Basic Earnings Per Share (EPS) improved to:
- FY26 EPS: ₹17.12
- FY25 EPS: ₹16.51
The EPS figures include the impact of regulatory deferral account balances.
Q4 FY26 Performance
For the quarter ended March 31, 2026, POWERGRID posted:
- Q4 Net Profit: ₹4,552.80 crore
- Q4 FY25 Net Profit: ₹4,336.17 crore
- Growth: Approximately 5% YoY
The quarterly results highlighted the continued stability of the company’s transmission business despite evolving regulatory adjustments and forex-related impacts.
Segment-Wise Performance
Transmission Business
POWERGRID’s core transmission segment remained its largest revenue contributor.
- Transmission Revenue FY26: ₹40,407.31 crore
- Transmission Revenue FY25: ₹41,545.89 crore
The marginal decline reflects regulatory adjustments and evolving tariff structures within India’s power transmission sector.
Consultancy Business
The consultancy division recorded strong growth during FY26.
- Consultancy Revenue FY26: ₹1,248.22 crore
- Consultancy Revenue FY25: ₹796.28 crore
This substantial increase demonstrates expanding opportunities in engineering, grid modernization, and infrastructure advisory services.
Dividend Announcement
The Board recommended a final dividend of ₹1.25 per equity share (face value ₹10 each), subject to shareholder approval at the upcoming Annual General Meeting (AGM).
This is in addition to two interim dividends already distributed during the financial year:
- 1st Interim Dividend: ₹4.50 per share (paid December 1, 2025)
- 2nd Interim Dividend: ₹3.25 per share (paid February 27, 2026)
As a result, the total FY26 dividend payout stands at ₹9 per share, reinforcing POWERGRID’s reputation as a stable dividend-paying public sector enterprise.
Board Approves ₹5,000 Crore Fund Raising
The Board also approved raising up to ₹5,000 crore through unsecured rupee term loans and credit facilities from the company’s existing consortium of banks via competitive bidding.
The proposed fundraising is expected to support future capital expenditure, transmission expansion projects, and infrastructure modernization initiatives.
Clean Auditor’s Opinion
POWERGRID confirmed that its statutory auditors issued an unmodified (clean) audit opinion on both standalone and consolidated financial statements for FY26.
A clean audit opinion indicates that the auditors found the company’s financial statements to present a true and fair view in accordance with applicable accounting standards and regulatory requirements.
Regulatory Deferral Impact
The company disclosed a negative movement of ₹2,823.61 crore in Regulatory Deferral Account Balances (net of tax) during FY26.
According to the company, the decline was primarily driven by:
- Foreign exchange fluctuations
- Deferred tax remeasurement following the Finance Act, 2026
These regulatory accounting adjustments impacted reported earnings but did not materially weaken the company’s operational fundamentals.
Corporate Restructuring and Merger Updates
POWERGRID also updated investors on several previously approved merger and amalgamation schemes involving wholly-owned subsidiaries.
The merger schemes became effective from March 1, 2026, and are aimed at:
- Simplifying the corporate structure
- Improving operational efficiency
- Enhancing administrative integration
CTUIL Stake Divestment
In another significant strategic move, the Board granted in-principle approval for the divestment of POWERGRID’s entire equity stake in:
- Central Transmission Utility of India Limited
The stake will be transferred to:
- Grid Controller of India Limited
The company also classified certain investments in joint ventures as “Assets Held for Sale,” signaling additional portfolio restructuring initiatives.
Outlook
With India continuing to invest aggressively in renewable energy integration, interstate transmission corridors, and grid modernization, POWERGRID remains strategically positioned at the center of the country’s evolving energy infrastructure ecosystem.
Analysts expect the company’s regulated asset base expansion, stable cash flows, and consistent dividend policy to continue supporting long-term investor confidence, even amid regulatory and forex-related accounting adjustments.
