Power Grid Corpn Q2 FY27 Results (NSE: POWERGRID)
Signal: Steady quarter
The read
The earnings inflection is cost-led rather than growth-led: consolidated revenue rose only 3.0% YoY to ₹11,816.22 crore, but other expenses fell 17.8% to ₹1,392.33 crore and PAT rose 8.4% to ₹3,866.16 crore; the next thesis test is whether asset additions and tariff income can convert into sustained revenue growth without further finance-cost pressure.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹11,816.22 Cr | +3.0% | +2.8% |
| Net profit | ₹3,866.16 Cr | +8.4% | |
| EPS | ₹4.16 | +8.3% | |
| EBIT margin | N/A |
P&L walk
Consolidated revenue increased to ₹11,816.22 crore, +3.0% YoY and +2.8% QoQ, while profit before tax and regulatory balances rose 16.1% YoY to ₹4,568.44 crore as other expenses fell 17.8% to ₹1,392.33 crore; PAT increased 8.4% to ₹3,866.16 crore despite a ₹106.16 crore regulatory-deferral expense and a ₹3.58 crore JV loss.
Segments
No consolidated segment table is provided; standalone disclosures show transmission as the core business, with quarterly segment revenue of ₹9,909.72 crore and segment result of ₹5,656.03 crore, while consultancy contributed ₹273.73 crore of revenue and ₹19.92 crore of result.
Key positives
- Consolidated PAT increased 8.4% YoY to ₹3,866.16 crore despite only 3.0% revenue growth, with other expenses down 17.8% to ₹1,392.33 crore.
- Standalone operating margin expanded 300bps YoY to 100%, while standalone other expenses declined 15.9% to ₹1,115.97 crore.
- Standalone H1FY27 operating cash flow rose to ₹18,110.45 crore from ₹13,385.77 crore, exceeding reported H1FY27 PAT of ₹7,230.03 crore plus depreciation of ₹5,910.96 crore.
- Transmission income recognised under CERC tariff orders was ₹9,106.68 crore in the quarter, while ₹544.31 crore was provisionally recognised for assets awaiting tariff orders.
Key concerns
- Consolidated revenue growth remains modest at 3.0% YoY, limiting the evidence of acceleration in the underlying transmission franchise.
- Consolidated finance costs rose 2.0% YoY to ₹2,191.34 crore and standalone finance costs rose 6.9% to ₹2,733.50 crore, while standalone debt-equity increased to 1.43x from 1.38x YoY.
- The quarter included a ₹106.16 crore negative regulatory-deferral movement, making PAT less representative of recurring operating earnings.
- Standalone H1FY27 investing cash outflow was ₹17,326.35 crore, including ₹3,697.10 crore invested in subsidiaries, JVs and others, keeping the business dependent on borrowing and capital-market access.
Research and educational content only. Not investment advice.