The PSU also raised its capitalisation guidance to Rs 22,000 crore, up from the earlier estimate of Rs 20,000 crore.
Last week, Power Grid reported an 8% year-on-year increase in its December quarter net profit, reaching Rs 4,185 crore compared to Rs 3,862 crore in the same period last year. On a sequential basis, the profit after tax (PAT) jumped 17% from Rs 3,566 crore in the July-September quarter of FY26.
Revenue from operations for the quarter stood at Rs 12,395 crore, up 10% YoY from Rs 11,233 crore, and 8% quarter-on-quarter, reflecting steady growth. The company’s gross fixed assets as of December 31, 2025, were reported at Rs 3 lakh crore.
In the Union Budget 2026, the government proposed a 19% increase in total investment by nine state-owned power sector companies, bringing the total to Rs 1,01,762.92 crore for 2026-27. As part of this, Finance Minister Nirmala Sitharaman suggested raising Power Grid’s investment to Rs 37,000 crore in the next fiscal year, up from the revised estimate of Rs 28,000 crore and the budgeted estimate of Rs 25,000 crore.
On the technical front, Power Grid shows a bullish outlook. Its 14-day RSI stands at 59.9, well below the overbought level of 70, suggesting there is still potential for upward movement. Additionally, the stock is trading above 7 of its 8 major simple moving averages (SMAs), further reinforcing a strong positive trend.
In the December 2025 quarter, Mutual Funds increased their stake in Power Grid from 13.35% to 14.25%, while Foreign Portfolio Investors (FPIs) reduced their holdings from 25.66% to 24.73%.Also read: Rs 13 lakh crore boom! Sensex surges 3,500 pts, Nifty soars nearly 5%. India-US trade deal among top factors behind rally
Strong quarterly performance, higher capex guidance, and favourable government investment plans have fueled a solid rally in Power Grid’s shares, making the stock technically bullish in the near term.
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
