Power Grid Corp of India's quarterly profit falls as project delays hurt transmission business

Torrent Power

19/05/2025 16:17

May 19 (Reuters) - Power Grid Corporation of India PGRD.NS posted a marginal fall in fourth-quarter profit on Monday amid sector-wide delays in energy transmission projects.

The state-run energy transmission company's consolidated net profit fell 0.5% from a year ago to 41.43 billion rupees ($485 million) in the quarter ended March 31.

Revenue from operations rose 2.5% to 122.75 billion rupees.

The company also said it has sold its entire stake in two joint ventures (JVs) — Torrent Power Grid, a JV with Torrent Power TOPO.NS, and Sikkim Power Transmission, a JV with Sikkim Urja.

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KEY CONTEXT

India's clean energy sector is facing setbacks due to delays in transmission projects, especially interstate ones.

These hold-ups are leading to weak demand for tenders, delays in signing power agreements and project cancellations — all of which are hurting the country’s efforts to meet rising energy needs, the Institute for Energy Economics and Financial Analysis had said in March.

The state-run power transmission giant's revenue from transmission business, which accounts for most of total revenue, fell 0.5% in the quarter.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth (%)
Profit growth
(%)
Mean rating*
No. of analysts
Stock to price target**
Div yield (%)
Power Grid Corporation of India
PGRD.NS
16.52
9.05
4.89
6.76
Buy
18
0.92
3.50
Tata Power Company
TTPW.NS
NULL
12.48
11.65
23.50
Hold
21
0.96
0.55
Torrent Power
TOPO.NS
27.74
12.42
9.67
-5.06
Hold
9
1.07
1.25
NTPC
NTPC.NS
14.57
9.18
8.10
9.31
Buy
17
0.82


* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JANUARY-MARCH STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 85.4170  Indian rupees

POWER GRID CORP JAN-MARCH https://tmsnrt.rs/3YQivvg

 (Reporting by Yagnoseni Das in Bengaluru; Editing by Sahal Muhammed)

 ((Yagnoseni.Das@thomsonreuters.com;))