Power Grid Q3 FY25 Results: Net Profit Declines 4% to ₹3,861.6 Cr, EBITDA Drops 7%, Dividend Declared
Power Grid Corporation of India Ltd: Overview
Power Grid Corporation of India Ltd. (PGCIL) is India’s largest electric power transmission utility, responsible for managing the bulk transmission of electricity across the country. Established in 1989, it operates under the Ministry of Power, Government of India, and plays a crucial role in ensuring reliable and efficient power transmission. PGCIL owns and operates an extensive network of transmission lines, substations, and high-voltage direct current (HVDC) systems, forming the backbone of India’s power infrastructure. The company has also expanded its business into consultancy services, telecommunication, and smart grid solutions, leveraging its vast expertise in power system management. With a significant focus on technology adoption, renewable energy integration, and grid modernization, PGCIL continues to strengthen its leadership position in India’s evolving power sector. The Indian power transmission sector is poised for significant growth, driven by increasing electricity demand, renewable energy expansion, and government initiatives to improve grid infrastructure. The National Electricity Plan (NEP) emphasizes the need for extensive transmission capacity expansion to support renewable energy projects, particularly solar and wind energy. The government’s focus on energy security, electrification of rural areas, and cross-border power trading is expected to enhance investment in the sector. Additionally, the push for smart grids, digital substations, and HVDC corridors will create new opportunities for companies like PGCIL. Despite challenges such as land acquisition and regulatory hurdles, the transmission sector remains a key enabler of India’s energy transition, with PGCIL positioned to benefit from the increasing investment in grid modernization and inter-regional connectivity projects.
Latest Stock News
As per Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, Power Grid Corporation of India Ltd. has announced that the ‘Committee of Directors on Investment on Projects’ has approved investment approvals for key transmission projects in its meeting held on February 3, 2025. The first project involves the creation of a 400kV switchyard at Vataman (AIS), including the installation of 21500MVA, 765/400kV ICTs along with 2125MVAr (420kV) Bus Reactors. This project, associated with the Transmission System for Offshore Wind Zone Phase-1 (500 MW VGF off the Coast of Gujarat for Subzone B3), is estimated to cost ₹319.42 crore and is scheduled for commissioning by February 19, 2026. The second project pertains to an additional transmission system for ensuring redundant power supply to the Dholera area, estimated at ₹109.74 crore, with a scheduled commissioning date of March 1, 2026. This project aligns with the creation of a 400kV switchyard and ICT installations at Vataman under the same offshore wind transmission scheme. Additionally, Power Grid has approved an interim dividend of ₹3.25 per share.
Business Segments
- Transmission Segment: It is the company’s core business, involving the development, operation, and maintenance of high-voltage transmission lines and substations. It forms over 90% of PGCIL’s revenue, with a network exceeding 175,000 circuit kilometres and over 270 substations.
- Telecommunication Segment: It leverages PGCIL’s extensive transmission network to offer fibre-optic communication services to telecom operators and enterprises. The company operates one of the largest optic fibre networks in India, providing seamless connectivity for various commercial applications.
- Consultancy Services Segment: It provides technical and management consultancy for domestic and international power projects, offering expertise in grid planning, engineering, and system operations. This segment has witnessed increasing demand, particularly from neighboring countries and African nations.
- Smart Grid and Renewable Energy Segment: It focuses on integrating renewable energy sources into the national grid and implementing advanced grid management technologies. This includes developing battery energy storage systems and digital substations.
Subsidiary Information
- Power Grid Energy Services Ltd. (PGESL): PGESL is a wholly owned subsidiary of PGCIL, focusing on the development and operation of energy storage solutions, grid management technologies, and electric vehicle (EV) charging infrastructure. The subsidiary plays a crucial role in India’s energy transition by supporting renewable energy integration through advanced storage solutions.
- Power Grid Unchahar Transmission Ltd. (PGUTL): PGUTL is a special purpose vehicle (SPV) created to develop and operate transmission projects in Unchahar, Uttar Pradesh. The subsidiary was established as part of PGCIL’s efforts to strengthen regional grid connectivity and ensure stable power supply to industrial and residential consumers.
- Power Grid Jawaharpur Firozabad Transmission Ltd. (PGJFTL): PGJFTL was formed to handle critical transmission infrastructure projects in Uttar Pradesh, particularly in the Jawaharpur and Firozabad regions. PGJFTL plays a key role in supporting industrial growth in the region by ensuring uninterrupted power supply.
- Power Grid Teleservices Ltd. (PGTL): PGTL is a subsidiary focused on providing telecom and broadband services using PGCIL’s vast fibre-optic network. It caters to government agencies, private enterprises, and telecom operators, offering services such as leased lines, broadband connectivity, and data center solutions. The subsidiary is instrumental in diversifying PGCIL’s revenue streams beyond power transmission.
- Power Grid Southern Interconnector Transmission Ltd. (PGSITL): PGSITL is responsible for enhancing power transmission capacity in southern India, ensuring reliable interconnection between different regional grids. PGSITL plays a significant role in supporting the integration of renewable energy from southern states like Tamil Nadu and Karnataka into the national grid.
Q3 FY25 Earnings
- Revenue of ₹11233 crore in Q3 FY25 down by 2.74% YoY from ₹11550 crore in Q3 FY24.
- EBITDA of ₹9533 crore in this quarter at a margin of 85% compared to 88% in Q3 FY24.
- Profit of ₹3862 crore in this quarter compared to a ₹4028 crore profit in Q3 FY24.
Financial Summary
| Amount in ₹ Cr | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 11550 | 11233 | 45603 | 45843 |
| Expenses | 1375 | 1700 | 6028 | 6017 |
| EBITDA | 10175 | 9533 | 39576 | 39826 |
| OPM | 88% | 85% | 87% | 87% |
| Other Income | 380 | 552 | 1093 | 556 |
| Net Profit | 4028 | 3862 | 15420 | 15573 |
| NPM | 34.9% | 34.4% | 33.8% | 34% |
| EPS | 4.3 | 4.2 | 16.6 | 16.7 |