Power Grid of India board clears ₹2.2 lakh crore borrowing limit proposal

Power Grid of India board clears ₹2.2 lakh crore borrowing limit proposal


State-run Power Grid Corporation of India Ltd on Friday (June 26) approved a proposal to increase its borrowing limit to ₹2.2 lakh crore from ₹1.8 lakh crore, subject to shareholder approval at the company’s upcoming Annual General Meeting (AGM).

The board also approved raising up to $500 million in foreign currency funds through External Commercial Borrowings (ECB) from the Bank of Baroda.

In addition, the company approved an investment for the upgradation or conversion of the Udumalpet–Madurai 400kV single-circuit transmission line to a 400kV (quad) double-circuit line at an estimated cost of ₹772.65 crore.

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The project is scheduled to be implemented within 30 months from the date of allocation and is targeted for completion by August 11, 2028.

Fourth Quarter Results

Power Grid Corporation of India reported a 9.7% year-on-year rise in consolidated net profit for Q4FY26, at ₹4,546.3 crore, beating the CNBC-TV18 poll estimate of ₹4,451 crore. Net profit stood at ₹4,143 crore in the corresponding quarter last year.

However, revenue from operations declined 5% year-on-year to ₹11,666 crore from ₹12,275 crore and came in below the CNBC-TV18 poll’s projected ₹12,859 crore.

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EBITDA fell 11.3% to ₹9,066 crore against ₹10,224 crore a year ago, missing the poll estimate of ₹10,901 crore. EBITDA margin narrowed to 77.7% from 83% in the year-ago quarter and was lower than the estimated 84.28%.

The board recommended a final dividend of ₹1.25 per equity share for FY26, subject to shareholder approval at the upcoming AGM. The final dividend is in addition to the first interim dividend of ₹4.50 per share and the second interim dividend of ₹3.25 per share already paid during the financial year.

On Thursday (June 25), shares of Power Grid Corporation of India Ltd ended at ₹283.95, down by ₹6.85, or 2.36%, on the BSE.

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