Power Grid Shares Fall 3% After Weak Q2 FY26; Board Clears ₹6,000 Crore Credit Line, Interim Dividend

Shares of Power Grid Corporation of India Ltd declined nearly 3% on Tuesday, November 4, following a weaker-than-expected performance in the September quarter.

The state-run power transmission major reported a drop in net profit and operating margins, even as the board approved a ₹6,000 crore line of credit and declared an interim dividend.

Power Grid Q2 FY26 Results Overview

Power Grid reported a 6% year-on-year decline in consolidated net profit to ₹3,566 crore for the September quarter, compared with ₹3,793 crore in the same period last year.

Revenue from operations increased marginally by 1.8% to ₹11,476 crore, up from ₹11,277 crore a year earlier, aligning roughly with analysts’ projections.

Decline in Operating Performance

Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 6.1% year-on-year to ₹9,114 crore from ₹9,701 crore, trailing Street estimates. The company’s operating margin also contracted sharply to 79.4%, compared with 86% in the year-ago period.

Power Grid Board Approvals and Dividend Announcement

Alongside its earnings report, Power Grid’s board approved raising up to ₹6,000 crore through an unsecured rupee term loan or line of credit from the State Bank of India. The board also declared the first interim dividend of ₹4.5 per equity share of ₹10 each, representing 45% of the paid-up equity share capital for FY26.

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Conclusion

Power Grid’s second-quarter results reflected a mixed performance, with stable revenues but lower profitability and margins. The board’s approval of a credit line and interim dividend highlights its focus on maintaining liquidity and rewarding shareholders.

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