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Power Grid Corporation of India (PGCIL) reported muted Q1FY27 performance

ICICIdirect Research 06 Aug 2026 DISCLAIMER

News: Power Grid Corporation of India (PGCIL) reported muted Q1FY27 performance, with revenue from operations declining 1.3% YoY to ₹9,795 crore. EBITDA remained broadly flat at ₹8,111 crore (-0.1% YoY), although EBITDA margin expanded 104 bps YoY to 82.8%. Adjusted PAT declined 6.6% YoY to ₹3,411 crore, reflecting lower regulatory income and a higher effective tax rate. Segment-wise, Transmission revenue declined 1.8% YoY to ₹9,704 crore, with EBIT margin contracting to 54.8% from 56.2% in Q1FY26. Consultancy revenue increased 14.5% YoY to ₹227 crore, while EBIT margin declined to 0.4% from 1.2% in the corresponding quarter last year. company approved a ₹857 crore HTLS reconductoring project in Tamil Nadu to boost transmission capacity.

View: The quarter remained weak as lower transmission revenue, margin contraction in the core transmission business and lower regulatory income weighed on earnings. While EBITDA remained largely stable due to the regulated nature of the business, adjusted PAT declined 6.6% YoY, reflecting the absence of favourable regulatory income. Nevertheless, the long-term investment outlook remains intact. Management has set target of ~₹37,000 crore capex and ~₹30,000 crore asset capitalization in FY27, supported by renewable energy evacuation projects, HVDC corridors and TBCB opportunities. Over the medium term, the company sees a ₹15 lakh crore transmission opportunity driven by India's 900+ GW non-fossil energy target, hydro evacuation from the Brahmaputra basin and rising power demand from data centres and green hydrogen.

Impact: Neutral

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