SYNOPSIS: Board approves Rs. 705 crore investment in transformers and revised merger plan consolidating 28 subsidiaries into two entities, aiming to enhance operational efficiency, subject to regulatory approvals.
During Friday’s trading session, shares of a Maharatna CPSE under the Ministry of Power are involved in the business of transmission of power, surged nearly 3 percent on BSE, after the company’s Board approved Rs. 705 crore capex for transformer procurement, along with other restructuring approvals.
With a market cap of Rs. 2.38 lakh crores, shares of Power Grid Corporation of India Limited are currently trading in the green at Rs. 304.4 on BSE, up by over 2 percent, compared to its previous closing price of Rs. 296.6. The stock has delivered positive returns of around 9 percent in one year, as well as about 2 percent in the last one month.
News
As per its latest disclosure to the stock exchanges, the Board of Power Grid Corporation of India Limited has approved key investment and restructuring proposals. The Board has granted investment approval for the procurement of cold spare transformers and reactors, as approved in the 77th Northern Regional Power Committee (NRPC), with an estimated project cost of Rs. 705.3 crore. The project is expected to be executed within a period of 30 months from the date of approval.
In addition, the Board has approved a revised restructuring plan involving the merger and amalgamation of 28 wholly owned subsidiaries into two existing wholly owned subsidiaries. This proposal supersedes the earlier plan approved in December 2025, which involved the consolidation of 11 subsidiaries. The proposed merger remains subject to necessary approvals from relevant statutory, regulatory, and government authorities, as applicable.
Financials
For the quarter, PGCIL posted a consolidated revenue from operations of Rs. 12,395 crores, reflecting a sequential growth of around 8 percent QoQ compared to Rs. 11,476 crores in Q2 FY26. Likewise, on a year-on-year basis, revenue grew marginally by over 10 percent from Rs. 11,233 crores recorded in Q3 FY25.
Net profit for the quarter stood at Rs. 4,185 crore, indicating a rise of around 11 percent QoQ from Rs. 3,566 crores in Q2 FY26, as well as a rise on a year-on-year basis by nearly 8 percent from Rs. 3,862 crores reported in Q3 FY25.
Power Grid Corporation of India Limited, a Maharatna CPSE under the Ministry of Power, is mainly engaged in the business of transmission of power through its EHVAC (Extra-High-Voltage Alternating Current) and HVDC (High-Voltage Direct Current) transmission infrastructure. Notably, the company operates the world’s largest 765 kV transmission network.
The company has a strong execution pipeline with a total order book amounting to around Rs. 1.45 lakh crore as of January 2026. A significant portion of this comes from tariff-based competitive bidding (TBCB) projects, contributing ~Rs. 1.09 lakh crore. Projects under the new regulated tariff mechanism account for Rs. 23,608 crore, while ongoing regulated tariff projects add another Rs. 9,934 crore. Additionally, other segments, including cross-border projects, data centres, smart metering, and international projects, contribute Rs. 2,204 crore.
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