Q2 FY27 results analysis · November 01, 2026
Power Grid Q2 FY27 Results Analysis: EBITDA Margin Expands 285 bps, PAT Jumps 8% (POWERGRID)
+8.4%PAT year on year, Rs. 3,866.16 Cr
Source: Quarterly results filing (NSE)
Quick summary
Power Grid Corporation of India Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 11,816.22 Cr (+2.97% YoY) and PAT growth of +8.41% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 01, 2026 |
|---|---|
| Revenue (Q2) | Rs. 11,816.22 Cr (+2.97% YoY) |
| PAT (Q2) | Rs. 3,866.16 Cr (+8.41% YoY) |
| EBITDA margin | 82.61% (+285 bps YoY) |
| EPS (Q2) | Rs. 4.16 (+8.33% YoY) |
Quarter Snapshot
Q2 FY27 was a cost-and-cash-led quarter: consolidated PAT grew 8.41% reported and 23.72% ex-regulatory-deferral, with EBITDA margin up 285 bps YoY to 82.61% despite modest 2.97% revenue growth. H1 capex of Rs.18,912.69 cr (51.1% of the Rs.37,000 cr FY27 guidance) was essentially self-funded by 25.86% YoY growth in operating cash flow, and a Rs.3.00/share interim dividend was declared. Soft spots are Telecom (PBIT −13.70% YoY) and Consultancy (revenue −15.30% YoY), while the regulatory-deferral swing remains a YoY headwind.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue "in-line", standalone flatness risk | "commissioning-driven revenue tailwind; reported revenue in-line" | Consol +2.97% YoY; standalone +0.49% | Played out |
| Interest line up | "interest line up" | Consol +2.01% YoY (SA +6.86%) | Played out, weaker than feared |
| Deferred-tax remeasurement recurrence | watch item | None — deferred tax +37.20 charge | Contradicted |
| Regulatory-deferral swing | "least-resolved driver" | +94.14 (QoQ swing positive; YoY −423.13) | Partially |
| H1 capex/capitalization progress | "H1 progress vs Rs.30,000 cr / Rs.37,000 cr" | Capex 51.1% of FY27 target; capitalization not in filing | Partially |
| NCD pricing; TBCB disclosures | open checks | Not addressed in the filing — remain open for the call | Not observable |
| 1st interim dividend | board to consider | Declared Rs.3.00/share, record 06 Nov 2026 | Played out |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 capex Rs.37,000 cr (consolidated) | Guided with Q1 FY27 results (Aug 2026); reiterated from Q4 FY26 call | H1 consolidated capex Rs.18,912.69 cr = 51.1% of target | On Track |
| FY27 capitalization Rs.30,000 cr (incl. finance-lease, excl. FERV) | Guided with Q1 FY27 results (Aug 2026) | Q2/H1 capitalization not disclosed in the filing (Q1 was Rs.5,277 cr per management) | Too Early |
| Annual profits Rs.15,000 → Rs.19,000+ cr | Q4 FY26 call (Mar 2026), open-ended | H1 consolidated PAT Rs.7,464.58 cr; ex-deferral H1 Rs.7,476.60 cr (+15.6% YoY) | On Track |
| TBCB win rate >50% | Q4 FY26 call, open-ended | 10 FY27 wins with Rs.7,863.63 cr cumulative annual charges by 16 Oct 2026 (per company announcements) | On Track |
| FY28 capex Rs.45,000 cr / capitalization Rs.35,000 cr; ~Rs.65,000 cr over FY27+FY28 | Q4 FY26 call | FY28 not yet assessable | Too Early |
| Regulatory drag is "inherent" and transitory | Q1 FY27 concall (Aug 2026) | Deferral movement swung from −106.16 (Q1) to +94.14 (Q2) QoQ, but is −423.13 YoY vs Q2 FY26's +517.27 — QoQ relief, YoY headwind persists | Partially |
| Transmission charges "not governed by power flow" | Management commentary in prior notes | Revenue still grew only +2.97% YoY consolidated despite record Q2 demand per pre-call data; charges are fixed-annuity and move with capitalization timing, not demand — structural), with capitalization phasing still the… | Confirmed |
| Capitalization ramp ("FY27-27 would witness the fruits") | Q4 FY26 call | Capex +33.47% YoY in H1 supports the pipeline; capitalization figure not disclosed this quarter | Too Early |
Key Numbers, Quarter by Quarter
| Metric | Q2 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|
| Reg-deferral net movement, consol (Rs. cr) | +517.27 | −106.16 | +94.14 |
| TBCB wins FY27 (cumulative) | — | 6 by Jul 2026 | 10 by 16 Oct 2026 (Rs.7,863.63 cr annual charges) |
| Capitalization (Rs. cr) | — | 5,277 | Not disclosed in filing |
Key Investment Insights
Key Positives
- Consolidated PAT grew 8.41% YoY reported and 23.72% ex-regulatory-deferral to Rs.3,866.16 cr
- Consolidated EBITDA margin expanded 285 bps YoY to 82.61% on the company's presentation basis
- H1 operating cash flow of Rs.18,668.09 cr grew 25.86% YoY, 2.50x PAT
- H1 capex of Rs.18,912.69 cr (+33.47% YoY) reached 51.1% of the FY27 Rs.37,000 cr guidance and was essentially self-funded (FCF −Rs.244.60 cr)
- Finance costs rose only 2.01% YoY consolidated despite borrowings up 11.25%; other expenses fell 17.82% YoY
- First interim dividend of Rs.3.00/share declared, ~37.4% of H1 consolidated PAT
- Effective tax rate fell to 17.43% from 21.39% YoY
- 10 TBCB wins in FY27 with Rs.7,863.63 cr cumulative annual charges by 16 Oct 2026, tracking the >50% win-rate guidance
Risk Factors
- Telecom segment PBIT fell 13.70% YoY with margin down 533 bps to 42.01%
- Consultancy revenue fell 15.30% YoY consolidated
- Regulatory deferral movement swung −423.13 YoY (from +517.27 to +94.14), a persistent YoY headwind
- Standalone revenue was near-flat at +0.49% YoY
- Debt-equity drifted from 1.37 to 1.42 as borrowings grew 11.25% YoY; ISCR eased to 4.25 from 4.36
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