State-run Power Grid Corporation of India announced that its board approved a proposal to increase its borrowing limit to ₹2.2 lakh crore from ₹1.8 lakh crore, subject to shareholder approval at the upcoming Annual General Meeting. The board also approved raising up to $500 million in foreign currency funds through External Commercial Borrowings (ECB) from the Bank of Baroda, as reported by CNBC TV18 and The Economic Times. This comprehensive fundraising strategy includes the earlier announced plans to raise $500 million from domestic or foreign banks on a private placement basis, demonstrating the company's commitment to securing adequate capital for its operations and growth initiatives.
Power Grid Corporation reported a 9.7% year-on-year rise in consolidated net profit for Q4FY26, reaching ₹4,546.3 crore, which beat the CNBC-TV18 poll estimate of ₹4,451 crore. As reported by CNBC TV18, net profit stood at ₹4,143 crore in the corresponding quarter last year. However, revenue from operations declined 5% year-on-year to ₹11,666 crore from ₹12,275 crore and came in below the CNBC-TV18 poll's projected ₹12,859 crore. EBITDA fell 11.3% to ₹9,066 crore against ₹10,224 crore a year ago, missing the poll estimate of ₹10,901 crore, with EBITDA margin narrowing to 77.7% from 83% in the year-ago quarter.
The board approved an investment for the upgradation or conversion of the Udumalpet–Madurai 400kV single-circuit transmission line to a 400kV (quad) double-circuit line at an estimated cost of ₹772.65 crore, as reported by CNBC TV18 and The Economic Times. The project is scheduled to be implemented within 30 months from the date of allocation and is targeted for completion by August 11, 2028. This significant infrastructure investment demonstrates the company's focus on expanding and modernizing its transmission capabilities to support India's growing power demand.
The board recommended a final dividend of ₹1.25 per equity share for FY26, subject to shareholder approval at the upcoming AGM. According to CNBC TV18, the final dividend is in addition to the first interim dividend of ₹4.50 per share and the second interim dividend of ₹3.25 per share already paid during the financial year. On Thursday (June 25), shares of Power Grid Corporation of India ended at ₹283.95, down by ₹6.85, or 2.36%, on the BSE, reflecting investor reaction to the mixed quarterly results despite the positive profit growth. The market response suggests cautious optimism about the company's strategic fundraising initiatives and infrastructure expansion plans.
