Power Grid Share Price: Maharatna PSU profit rises 10%; Brokerages see up to 17% upside in stock

State-owned Power Grid Corporation of India Ltd (PGCIL) reported a nearly 10 per cent rise in consolidated net profit for the March quarter, aided by a sharp jump in deferred tax credit, while brokerages largely remained positive on the stock and raised target prices, citing strong execution and improving capitalisation trends.

The company posted a consolidated net profit of Rs 4,546.33 crore for the quarter ended March 31, 2026, compared with Rs 4,142.87 crore in the corresponding period of the previous fiscal, according to a regulatory filing.

The rise in profit came despite a decline in total income to Rs 11,970.69 crore during the quarter from Rs 12,590.80 crore a year ago.

Power Grid’s deferred tax credit surged to Rs 5,179.80 crore in the March quarter against Rs 19.98 crore in the year-ago period, supporting the bottom-line growth.

For the full financial year 2025-26, the company reported a consolidated net profit of Rs 15,927.95 crore, up from Rs 15,521.44 crore in FY25.

The company’s board proposed a final dividend of Rs 1.25 per share on a face value of Rs 10 each for FY26. This is in addition to the interim dividend of Rs 7.75 per share already paid during the fiscal.

Stock performance and market trends

Shares of state-owned Power Grid Corporation of India Ltd were trading lower on Monday, even as the stock continued to outperform benchmark indices on a longer-term basis.

The stock was trading at Rs 294.85 apiece at 9:16 am, down Rs 1.70 or 0.57 per cent from the previous close. Power Grid’s market capitalisation stood at Rs 1.33 lakh crore.

The stock has declined 3.07 per cent in the last week and 6.66 per cent over the past one month, compared with gains of 1.26 per cent and a decline of 2.79 per cent, respectively, in the Nifty 50 index.

On a year-to-date basis, however, Power Grid shares have risen 11.28 per cent, outperforming the Nifty 50, which has fallen 9.45 per cent during the same period.

Over one year, the stock has slipped 2.35 per cent against a 5.09 per cent decline in the benchmark index.

The stock has delivered strong long-term returns, gaining 69.39 per cent in the last three years and 125.81 per cent over the past five years. In comparison, the Nifty 50 has advanced 30.06 per cent and 57.52 per cent, respectively, during the same periods.

Power Grid hit its 52-week high of Rs 324.95 on April 27, 2026, while the 52-week low stood at Rs 250 on February 2, 2026. Power Grid Corporation of India Ltd is part of the Nifty 50 index and operates in the power transmission segment.

Jefferies and JP Morgan remain bullish

Brokerages remained constructive on the stock after the earnings announcement, with several firms highlighting strong capitalisation growth, improving execution and higher capex visibility.

Jefferies maintained a “Buy” rating on the stock and raised its target price to Rs 340 from Rs 325, implying an upside potential of around 15 per cent from the current market price. The brokerage said the March quarter adjusted profit after tax was broadly in line with expectations. It noted that capex rose 53 per cent year-on-year to Rs 13,200 crore, while capitalisation jumped tenfold year-on-year to Rs 15,300 crore.

Jefferies further said FY26 capitalisation stood at Rs 28,200 crore, up 3.1 times year-on-year and above the company’s upgraded guidance of Rs 25,000 crore. It also raised earnings estimates for FY27 and FY28 by 3 per cent, citing confidence in the company’s ability to meet future capitalisation targets.

JP Morgan retained its “Overweight” rating and increased the target price to Rs 345 from Rs 319, suggesting an upside of nearly 17 per cent over the current price.

CLSA and UBS highlight capitalisation growth

CLSA maintained an “Accumulate” rating with a target price of Rs 324, indicating a potential upside of close to 10 per cent. The brokerage said Power Grid’s capitalisation witnessed a strong pick-up, rising 221 per cent in FY26, while capex increased 52 per cent. It added that the company remains on track to deliver 14 per cent capitalisation growth over FY26-28.

UBS maintained a “Neutral” stance but raised the target price to Rs 320 from Rs 300, implying an upside of around 8.5 per cent.

Bernstein and HSBC flag key risks

Bernstein reiterated its “Outperform” rating with a target price of Rs 306, reflecting a modest upside of around 4 per cent. The brokerage said the worst phase for capitalisation may be over, though challenges related to land acquisition and right-of-way issues continue to persist.

HSBC maintained a “Hold” recommendation and raised the target price to Rs 295 from Rs 290, indicating limited upside from current levels. The brokerage, however, acknowledged that Power Grid exceeded its FY26 capex and capitalisation guidance and also highlighted emerging opportunities in intra-state transmission projects and battery energy storage systems (BESS).

Brokerages also flagged the increasing share of tariff-based competitive bidding (TBCB) projects in the transmission sector as a key monitorable. Bernstein noted that Power Grid could face pressure in passing on higher input costs and longer construction timelines in TBCB projects.

Transmission assets and subsidiary merger

During FY26, Power Grid maintained an average transmission system availability of 99.84 per cent. At the end of the fiscal year, the company and its subsidiaries operated 1,84,960 circuit kilometres of transmission lines, 291 substations and a transformation capacity of 6,24,016 MVA.

The company also said its board approved the merger of 28 wholly owned subsidiaries into two existing subsidiary companies, aimed at improving operational efficiency, management oversight and governance. This follows the earlier amalgamation of 19 wholly owned subsidiaries into two other existing entities.