India's Power Grid dips as brokerages flag concerns over projects becoming operational

Power Grid of India

04/08/2025 08:57

** Shares of Power Grid PGRD.NS fall as much as 1.91% to 285.70 rupees

** PGRD last down 0.9%, the top percentage loser on the Nifty 50 .NSEI, which is up 0.5%

** Multiple brokerages flag concerns over the company's sluggish pace of capitalisation of assets, implying that fewer projects have started generating revenue

** UBS says PGRD capitalised only 18 billion rupees in Q1, after 90 billion in FY25 against 263 billion rupees in capex in FY25

** Delayed project timelines could continue to weigh on stock performance, brokerage adds

** Power Grid posted a 2.5% year-on-year fall in the June-quarter consolidated net profit post market hours on July 30

** Bernstein also warns that capitalisation pressures may persist this year

** Average rating of 22 analysts tracking PGRD is "buy"; median PT is 323 rupees - data compiled by LSEG

(Reporting by Bharath Rajeswaran in Bengaluru)

((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))