Power Grid maintains strong margins with Rs 15,521-cr profit in FY25, declares Rs 9 dividend

New Delhi: Power Grid Corporation of India Limited (PGCIL), the state-owned power transmission major, posted a consolidated net profit of Rs 15,521 crore for the financial year ended March 31, 2025 (FY25), nearly flat from Rs 15,573 crore in the previous fiscal. The company maintained robust profitability and operational efficiency despite muted core revenue growth and regulatory transitions.

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Consolidated total income rose marginally by 1.17 percent to Rs 47,459 crore in FY25, while revenue from operations remained steady at Rs 45,792 crore compared to Rs 45,843 crore in FY24. The transmission business contributed Rs 44,776 crore, marking a slight decline of 0.28 percent, largely due to adjustments under the new tariff norms.

FY25: Power Grid sees impressive growth in non-core verticals

However, Power Grid saw impressive traction in its non-core verticals. The consultancy segment surged 79.3 percent to Rs 1,137 crore, up from Rs 634 crore a year earlier, while telecom revenues rose 23.9 percent to Rs 1,128 crore, driven by demand for network integration and fibre leasing. For the quarter ended March 31, 2025 (Q4 FY25), consolidated net profit stood at Rs 4,143 crore, slightly lower than Rs 4,166 crore in Q4 FY24, but up 7.3 percent sequentially. Total income for the quarter grew 2.3 percent year-on-year and 7.2 percent quarter-on-quarter to Rs 12,591 crore, indicating a strong finish to the year.

FY25: PGCIL standalone financial performance

On a standalone basis, PGCIL reported a net profit of Rs 15,354 crore for FY25, down marginally from Rs 15,475 crore in FY24. Revenue from operations dropped 2.3 percent to Rs 41,431 crore, though total income increased to Rs 46,325 crore on the back of higher other income, including asset monetisation gains.

In Q4 standalone results, net profit rose 5 percent year-on-year to Rs 4,336 crore, and revenue grew 8.5 percent over Q3 FY25, reflecting sequential strength. Net profit margins for the quarter improved to 39.5 percent, underscoring strong cost control and operating leverage.

Strong margins and balance sheet discipline

PGCIL maintained healthy financial indicators, with a consolidated net profit margin of 33.9 percent, EBITDA margin exceeding 71 percent, and an interest coverage ratio of 3.96x. The debt-equity ratio stood stable at 1.41, showcasing disciplined leverage management. As of March 31, 2025, the company's net worth stood at Rs 92,663 crore, while total borrowings amounted to Rs 1.31 lakh crore. Consolidated assets crossed Rs 2.66 lakh crore.

Dividend and shareholder returns

The Board recommended a final dividend of Rs 1.25 per share, adding to two interim dividends paid during the year—Rs 4.50 per share in December 2024 and Rs 3.25 in February 2025. This brings the total dividend payout for FY25 to Rs 9 per share, representing a dividend payout ratio of approximately 54 percent of standalone earnings.

Strategic Moves: SPV monetisation & telecom restructuring

During FY25, Power Grid completed the transfer of its remaining 26 percent stake in four Special Purpose Vehicles (SPVs)—Kala Amb, Jabalpur, Warora, and Parli Transmission Ltd—to POWERGRID Infrastructure Investment Trust (PGInvIT). This asset monetisation move, part of a long-term deleveraging strategy, contributed Rs 245.6 crore to other income during the year.

Additionally, the company transferred its telecom business to its wholly owned subsidiary, Powergrid Teleservices Limited (PTL), effective October 1, 2024. The business was earlier reported under discontinued operations in FY24. The move is expected to enable sharper operational focus and better valuation of telecom assets under a separate entity.

Impact of tariff regulations and outlook

The financial year 2024-25 marked the implementation of the new CERC (Central Electricity Regulatory Commission) Tariff Regulations for 2024–29. Power Grid recognised transmission income of Rs 36,976 crore as per approved tariffs and provisionally booked Rs 2,668 crore for assets pending final orders. While the transition caused some top-line volatility, the long-term framework is expected to support stable revenues going forward.

Looking ahead, Power Grid is expected to accelerate capital expenditure in the coming fiscal to support India’s growing power demand and grid integration for renewable energy. Industry analysts believe that with tariff stability restored and a strong order book, the company is well-positioned to grow earnings in FY26.

Despite a year of regulatory adjustments, asset restructuring, and a flattish transmission top line, Power Grid demonstrated solid resilience with a diversified revenue mix, strong margins, prudent balance sheet management, and consistent dividend payouts.

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