Power Grid Q3FY26 Preview: Modest Earnings Growth Expected Amid Weak Asset Capitalization

• Power Grid Corporation of India (PWGR) anticipates modest earnings growth in Q3FY26 due to weak asset capitalization, despite support from regulated equity expansion and steady execution.
• Moneycontrol Poll estimates Q3FY26 revenue to rise 5.2% YoY to Rs 11,866.5 crore, with net profit marginally up 0.5% YoY to Rs 3,883 crore.
• Revenue growth is expected to remain moderate (4-7% YoY) due to limited transmission asset capitalization in the trailing twelve months.
• Profitability will likely stay under pressure in Q3FY26, reflecting subdued capitalization, though FY26 full-year PAT growth is projected at 4-5%.
• Despite near-term moderation, Power Grid maintains a strong medium-term capex and execution outlook, with Rs 28,000 crore earmarked for FY26 and higher capex guided for FY27-28.

Why It Matters: Power Grid expects modest Q3FY26 earnings due to weak asset capitalization, but maintains a strong long-term outlook.