Power Grid's Profitability Dips as Margins Contract in Q1
The transmission utility reported modest revenue growth but a sharp quarterly drop in profit, with net margins falling below the trailing average.
Power Grid Corporation's Q1 FY27 results show a mixed picture. While revenue grew modestly year-on-year, profit declined sequentially and net profit margins contracted significantly.
Power Grid Corporation of India reported a quarter of stable top-line growth but weakening profitability. Revenue for Q1 FY27 rose 2.7% year-on-year to ₹11,497 crore, yet profit after tax (PAT) slipped 0.9% to ₹3,598 crore. The more striking story is the sequential decline from the previous quarter, where profit fell sharply by 20.9% even as revenue dipped only 1.4%, pointing to a significant squeeze on margins.
The company's net profit margin for the quarter stood at 31.3%, down 110 basis points from the same period last year and well below the 39.0% margin achieved in Q4 FY26. This margin compression is the key takeaway from the latest results, overshadowing the steady but modest revenue trajectory. Over the past twelve months (TTM), the company has maintained a healthier average net profit margin of 33.8%.
A look at the last five quarters reveals the volatility in quarterly profitability, even as revenue has shown a generally upward trend.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period Ended | June 2026 | March 2026 | June 2025 |
| Revenue (₹ Cr) | 11,496.72YoY +2.7% | 11,665.61 | 11,196.22 |
| Profit (₹ Cr) | 3,598.42YoY -0.9% | 4,546.33 | 3,630.58 |
| Net Profit Margin (%) | 31.3YoY -3.4% | 39.0 | 32.4 |
Key Points
- The stock has declined 7.8% over the past year, trading at ₹266.05 as of the results date, though it has delivered a strong 45.1% total return over three years.
- The company's valuation, at a P/E of 17.3, trades at a 26.4% discount to the industry average P/E of 23.5.
- For the full FY26, the company reported a revenue of ₹46,733 crore with a PAT of ₹15,928 crore and a net profit margin of 34.1%.
With the latest quarterly margin dipping below both the year-ago level and the TTM average, the focus shifts to whether this is a temporary setback or indicative of sustained pressure on earnings quality.
Live Chart
· POWERGRID
(BSE)
ISIN: INE752E01010
Also read
Want this applied to your portfolio?
Talk to a HexaWealth advisor, or sync your mutual fund data for insights tailored to your holdings.