Power Grid shares decline nearly 3% post weak Q2; Board approves up to ₹6,000 crore line of credit

Shares of Power Grid Corporation of India Ltd. were down nearly 3% on Tuesday, November 4, after the company after the company reported its second quarter earnings on Monday.

The state-run company's board also approved the first interim dividend along with the raising of funds via a line of credit.

Power Grid's September quarter results were largely below Street estimates.

It reported a 6% decline in its net profit in the September quarter to ₹3,566 crore from ₹3,793 crore last year. The number was below the CNBC-TV18 poll estimate of ₹3,780 crore.

Revenue for the quarter increased by 1.8% from last year to ₹11,476 crore from ₹11,277 crore, and was marginally above estimates of ₹11,431 crore.

Power Grid's earnings before interest, tax, depreciation and amortisation (EBITDA) declined by 6.1% to ₹,9114 crore from ₹9,701 crore last year. It also fell short of the CNBC-TV18 poll of ₹9,958.6 crore.

Its margins contracted to 79.4% from 86% in the year-ago period. It was also below estimates of 87%.

Power Grid's board of directors approved the payment of the first interim dividend of ₹4.5 per equity share of ₹10 each, which represents 45% of the paid-up equity share capital for FY26.

The record date for the same is Monday, November 10 and the dividend will be paid to shareholders on December 1.

The Power Grid board also approved the raising of funds via an unsecured rupee term loan or line of credit of up to ₹6,000 crore from the State Bank of India.

Power Grid shares were down 2.7% at ₹280.3 apiece around 9.25 am.. The stock has declined 9.7% this year, so far.

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