Power Grid's Profit Surge Amid Tax Credits: A Fiscal Milestone

Power Grid Corporation, the state-owned power transmission company, has seen a significant increase in its consolidated net profit, reporting a nearly 10% rise to Rs 4,546.33 crore for the March quarter, YoY. This profit surge is attributed to a substantial jump in deferred tax credit, according to the company's regulatory filing.

Despite dipping total income from Rs 12,590.80 crore to Rs 11,970.69 crore, the fiscal year 2025-26 consolidated net profit rose to Rs 15,927.95 crore from Rs 15,521.44 crore previously. The company has proposed a Rs 1.25 per share final dividend, supplementing the interim dividend for FY26.

To streamline operations, Power Grid's board approved the merger of 28 subsidiaries into 2 existing companies, bolstering management oversight and governance. This move follows the prior amalgamation of 19 wholly owned subsidiaries under a similar framework, aiming for improved operational efficiency.

(With inputs from agencies.)