One of India’s biggest transmission utility companies, this Maharatna PSU may not have reported strong numbers in FY25, but its solid fundamentals and growth pipeline have kept market pros optimistic. With strong capex plans, a high ROE of 18%, and sustaining leadership in the transmission space, it is a stock to watch out for. Even though it fell marginally from its 52-week high, analysts are seeing significant upside in the future.
With a market capitalization of Rs 2,79,483 crores, the shares of Power Grid of India Ltd are currently trading at Rs 300 per share, down by 18 percent from its 52-week high of Rs 366.25 per share. Over the last five years, the stock has delivered a return of 240 percent.
Financial Highlights
The company’s revenue and profitability remained mainly flat in the financial year 2025. It reported a revenue decline of 0.11 percent to Rs 45,792 crores in FY25 from Rs 45,843 crores in FY24. However, on a year-on-year basis, revenue surged 2.48 percent to Rs 12,275 crores in Q4 FY25 from Rs 11,978 crores in Q4 FY24. Additionally, on a quarterly basis, revenue surged by 9.27 percent from Rs 11,233 crores.
Net profit declined by 0.33 percent to Rs 15,521 crores in FY25 from Rs 15,573 crores in FY24. Additionally, on a year-on-year basis, profit declined by 0.55 percent to Rs 4,143 crores in Q4 FY25 from Rs 4,166 crores in Q4 FY24. However, on a quarterly basis, profit increased by 7.28 percent from Rs 3,862 crores in Q3 FY25.
Coming to its revenue segmentation, its transmission segment contributed the highest to the topline with 44,776.80 crores in FY25, followed by the consultancy segment with 1,137.28 crores and the telecom segment with 1,128.10 crores in FY25.
Additionally, it announced a dividend of 1.25 per equity share, subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM) of the Company.
The company has declared sale of its full stake and exit from two joint venture firms: Torrent Power Grid Limited, a JV with Torrent Power Limited, and Sikkim Power Transmission Limited, a JV with Sikkim Urja Limited. These exits reflect POWERGRID’s strategic step to cut back on non-core operations and return focus to core transmission projects.
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Analyst Comments
Sharekhan, in its research report dated April 01, 2025 has given a Buy rating on the stock with a target price of Rs 350 per share, signalling an upside of 17 percent from its current market price.
It cited that Power Grid has won 11 new TBCB (Tariff-Based Competitive Bidding) orders during the quarter, reflecting healthy business traction. The capex guidance for FY25 has been increased by the management to Rs. 23,000 crore (from Rs. 20,000 crore previously), with increased spending in FY26 and FY27 as given by the company’s guidance.
While the recent performance was affected by tighter CERC guidelines and reduced capitalization, a healthy capex pipeline provides good earnings visibility in the times ahead with a healthy Return on Equity of 18 percent and growth prospects.
About the company
Power Grid Corporation of India Limited is a leading power transmission company in India with domestic and international operations. It also offers consultancy services in power system planning, project implementation, and regulatory advisory. It offers telecom services under its POWERTEL brand and has also forayed into the operation of EV charging stations.
Written by Satyajeet Mukherjee
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