Power Grid Corporation's Strategic Moves Amid Profit Decline
Power Grid Corporation posted a 2.5% drop in net profit for Q1 2025-26 due to higher expenses, while revenue rose. The board approved raising borrowing limits and participating in new projects. Plans include joint ventures in India-Nepal and restructuring existing ventures.
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State-owned Power Grid Corporation has reported a 2.5% decline in consolidated net profit, standing at Rs 3,630.58 crore for the June quarter of 2025-26. This was attributed to increased expenses, as detailed in a recent BSE filing. In comparison, the company recorded a profit of Rs 3,723.92 crore during the same period last year.
Notwithstanding the profit dip, the company's total income rose to Rs 11,444.42 crore, up from Rs 11,279.59 crore year-on-year. Meanwhile, total expenses surged to Rs 7,114.23 crore from last year's Rs 6,643.07 crore. In line with these financial revelations, the board has approved an enhancement in the borrowing limit, from Rs 16,000 crore to Rs 25,000 crore, which will be sourced from various channels, including the issuance of non-convertible debentures on a private placement basis for 2025-26.
Additionally, the board green-lighted raising up to Rs 30,000 crore via domestic bonds during 2026-27, to be executed in multiple tranches or offers. The board also gave the nod for Power Grid's involvement in up to two TBCB projects, with an estimated project cost of Rs 500 crore, through a consortium with Power Grid Infrastructure Investment Trust. Strategic adjustments also include disengaging from Parbati Koldam Transmission Company and forming new joint ventures with Nepal Electricity Authority to enhance cross-border transmission links.
(With inputs from agencies.)
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