Capex momentum to improve Power Grid's prospects

Power Grid Corporation of India (PGCIL) closed FY2025 with a flat profit of ₹15,500 crore. It was adversely impacted by the weak capitalization of ₹9,000 crore in the year.

- DEVANGSHU DATTA

The capex at ₹26,200 crore was up 110 per cent year-on-year (Y-o-Y) with the guidance of further improvement to ₹28,000 crore in FY26 and ₹35,000 crore in FY27.

Record project wins were also reported with ₹92,000 crore, and works-on-hand is ₹1.55 trillion. The management hopes capex improvement will translate to asset capitalization of ₹28,000 crore in FY26.

The Q4FY25 results reported consolidated a net profit of ₹4,140 crore (down 0.6 per cent Y-o-Y), despite higher consultancy and telecom revenues of ₹520 crore (up 120 per cent Y-o-Y) and ₹300 crore (up 21 per cent Y-o-Y), respectively. There were losses in joint ventures (including EESL) of ₹29.6 crore, in comparison to ₹61.7 crore profit in Q4FY24.

Transmission revenues of ₹11,500 crore rose 1.7 per cent Y-o-Y, owing to weak capitalization, and were also impacted by lower prior-period income of ₹63.2 crore in Q4FY25 (₹140 crore in Q4FY24).