Shares of Power Grid Corporation of India fell over 3% on Tuesday, November 3, after the state-owned power transmission company lowered its capitalisation guidance for FY27.
The stock declined 3.04% to close at ₹259.55 on the NSE, down ₹8.15 for the day.
In its revised FY27 execution and operations guidance, power transmission utility lowered its capitalisation target to ₹25,000–30,000 crore from its earlier guidance of ₹30,000 crore. Capitalisation refers to the value of projects commissioned and capitalised during the financial year.
The company, however, increased its capital expenditure (capex) guidance at ₹37,000–40,000 crore for FY27 from ₹37,000. The gap between the capex and capitalisation targets indicates that a lower amount of planned project expenditure is expected to translate into commissioned and capitalised assets during the year.
During H1 FY27, Power Grid commissioned 2,616 ckm of transmission lines and added 25,100 MVA of transformation capacity. It also fully commissioned the Ramgarh-II and Bidar transmission systems under the TBCB route.
The downward revision in capitalisation guidance appears to have weighed on investor sentiment, as commissioning of projects and their subsequent capitalisation are important for the company’s asset base and future regulated returns.
Q2 performance
Power Grid had reported an 8.41% year-on-year increase in consolidated net profit to ₹3,866.16 crore for the September quarter, compared with ₹3,566.08 crore in the corresponding period last year.
Consolidated revenue from operations rose 2.97% year-on-year to ₹11,816.22 crore from ₹11,475.95 crore. On a sequential basis, net profit increased 7.44%, while revenue grew 2.78%.
The company’s board had also approved its first interim dividend of ₹3 per equity share of ₹10 each for the financial year 2026-27. The dividend amounts to 30% of the company’s paid-up equity share capital. The record date for determining eligible shareholders has been fixed as Friday, November 6, 2026.
Despite the growth in quarterly earnings, the reduction in FY27 capitalisation guidance emerged as the key overhang for the stock during Tuesday’s trading session.
Stock performance
Shares of Power Grid Corporation of India have declined 18.65% over the past six months, falling ₹59.50 to ₹259.55. However, on a year-to-date basis, the stock is down 2.72%, or ₹7.25, as of November 3, 2026.
Also Read: Power Grid Corporation of India Q2 Results: Net profit up 8%; approves ₹3 interim dividend