Power Grid Corporation of India Q2FY25: Rising Revenue and Infrastructure Focus Signal Continued Growth

– Power Grid Corporation reported a revenue of Rs. 11,278 crores (up 2.5% QoQ / up 0.1% YoY), surpassing the estimated revenue of Rs. 11,271 crores.

– The company earned an EBITDA of Rs. 9,701 crores (up 5% QoQ / down 2% YoY), and the EBITDA margins stood at 86.0%, which was 87.2% in the previous quarter and 87.9% in the quarter ended September 2023.

– The company earned a PAT of Rs. 3,793 crores (up 1.9% QoQ / up 0.3% YoY), which fell short of its estimates of Rs. 3,873 and the PAT margins stood at 34.6%, which was 33.6% during the previous quarter and 33.9% during the quarter ended September 2023.

– The company earned an EPS of Rs. 4.08 during the quarter (up 2% QoQ / up 0.5% YoY)

– The company announced its first interim dividend of Rs. 4.50 per equity share for FY25 to be paid on 4th December 2024.

 View by Manish Chowdhury, Head of Research, StoxBox

 Power Grid Corporation of India, a government-owned transmission company, reported a 2.5% increase in revenue compared to the prior quarter. Notably, revenue from its transmission and telecom segments saw strong YoY growth. Although the company experienced a slight rise in expenses relative to previous quarters, this had minimal impact on its margins and profitability. Looking ahead, the government’s focus on infrastructure development, along with increased power demand driven by economic activities, is expected to fuel growth in India’s utility sector. Power Grid’s upcoming renewable energy initiatives, backed by substantial capital expenditure and a resilient business model, signal a promising growth outlook over the long term. Consequently, the company’s performance is expected to remain positive, supporting a favorable medium to long-term perspective.