PowerGrid Reports Flat Revenue Growth Despite Rs 4,587 Crore Capitalization in Q2

Power Grid Corporation of India , India's flagship power transmission utility, reported a relatively flat revenue growth for the first half of the fiscal year, despite capitalizing Rs 4,587 crores worth of projects. The company's financial performance reflects the complex dynamics of its business model and the challenges faced in project execution.

Financial Highlights

For the first half of the fiscal year, PowerGrid reported:

Metric	Amount (Rs Crores)
Total Income	23,115.00
EBITDA	19,109.00
Profit After Tax	7,197.00
Net Worth	98,932.00
Gross Fixed Assets	2,95,148.00

The company's debt-to-equity ratio stands at 58:42, indicating a balanced capital structure.

Project Execution and Capitalization

PowerGrid capitalized Rs 4,587.00 crores worth of projects in the first half of the fiscal year, compared to Rs 4,006.00 crores in the previous year. However, the revenue remained relatively flat due to older projects completing their 12-year depreciation cycle, which reduced revenue by approximately 9% from depreciation and interest components.

Challenges and Outlook

The company faces challenges with right-of-way acquisition delays, which have impacted project timelines. However, PowerGrid expects to commission Rs 20,000.00 crores worth of projects by the end of the fiscal year. The company has a substantial project pipeline, with works in hand worth Rs 1,52,000.00 crores, of which Rs 1,03,000.00 crores are from Tariff Based Competitive Bidding (TBCB) projects.

Future Investments and Growth

PowerGrid has outlined an ambitious capital expenditure plan:

Current fiscal year: Rs 28,000.00 crores
Next fiscal year: Rs 35,000.00 crores
Following fiscal year: Rs 45,000.00 crores

This increasing trend in capital expenditure indicates the company's commitment to expanding its transmission network and capitalizing on the growing demand in the power sector.

Equipment Supply Constraints

The company acknowledges supply constraints for transformers and HVDC equipment, with delivery times exceeding one year for transformers. To mitigate this, PowerGrid is procuring transformers and reactors well in advance through bulk procurement.

New Opportunities

PowerGrid is exploring opportunities in battery energy storage systems and has participated in tenders, although it has not secured any projects yet. The company is also venturing into the data center business, with a 1,000-rack facility expected to be commissioned by Q4 of the current fiscal year.

Regulatory and Policy Updates

The government has issued new guidelines for land compensation rates, potentially easing right-of-way issues. The process of finalizing land valuations is expected to take about a month, which may help expedite project executions in the future.

Despite the challenges, PowerGrid remains committed to executing its project pipeline and maintaining its position as a key player in India's power transmission sector. The company's focus on diversification into areas such as smart metering and data centers, coupled with its robust capital expenditure plans, suggests a strategic approach to long-term growth in the evolving energy landscape.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.21%	-4.28%	-6.66%	-13.57%	-17.23%	+150.59%

Power Grid Corporation of India Limited, a key player in the Indian power sector, has announced a significant change in its joint statutory auditors for the financial year 2025-26. This development comes as part of the company's compliance with regulatory requirements and ensures continued transparency in financial reporting.

Key Changes in Auditor Appointment

Aspect	Details
New Auditor	M/s. ASA & Associates LLP, New Delhi
Outgoing Auditor	M/s. Rama K Gupta & Co., New Delhi
Appointing Authority	Comptroller and Auditor General of India (CAG)
Effective Date	November 8, 2025
Appointment Term	One year (FY 2025-26)

Reasons for the Change

The change in auditors was initiated by the Comptroller and Auditor General of India (CAG). M/s. Rama K Gupta & Co., the outgoing auditor, resigned with immediate effect due to being allotted another statutory audit assignment by CAG for the same financial year.

Profile of the New Auditor

M/s. ASA & Associates LLP, the newly appointed joint statutory auditor, brings a wealth of experience to the role:

Established in 1991
First-generation Chartered Accountancy firm
Head office in Delhi with branches in 8 locations across India
Over 34 years of experience in the field
More than 30 partners/directors

The firm's expertise extends beyond audit and advisory services. They assist domestic and international businesses in various areas, including:

Setting up offices
Finding partners
Navigating mergers and acquisitions
Advising on tax issues
Conducting forensic audits
Providing cybersecurity services

Implications and Compliance

This change in joint statutory auditors aligns with PowerGrid's commitment to maintaining high standards of financial reporting and corporate governance. The appointment, made in accordance with Section 139 of the Companies Act, 2013, ensures that the company continues to meet regulatory requirements and maintains transparency in its financial operations.

PowerGrid Corporation has duly informed the stock exchanges of this change, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This timely disclosure keeps shareholders and the market informed about significant changes in the company's audit framework.

As PowerGrid Corporation of India Limited moves forward with its new joint statutory auditor, stakeholders can expect continued adherence to stringent auditing standards and transparent financial reporting for the fiscal year 2025-26.