Company Update : Power Grid by Motilal Oswal Financial Services Ltd
Miss on EBITDA; higher other income supports PAT
* Standalone (SA) performance:
* In 1QFY26, PWGR reported SA revenue of INR99.3b (-1% YoY), 6% below our estimate. EBITDA was 12% below our estimate at INR81.2b (- 7% YoY), hit by a 66% YoY surge in other expenses.
* Adj. SA PAT was only 6% below our estimate at INR34.7b, supported by higher-than-expected other income and lower tax expenses. The weakness in PAT was likely attributable to lower-than-guided capitalization levels.
* The net movement in regulatory deferral account balances stood at INR2.1b during the quarter.
* Consolidated performance:
* The company reported an EBITDA of INR 93.6b (-2% YoY), while PAT declined ~2% YoY to INR 36.3b.
* The transmission segment remained the primary revenue driver, contributing 97.31% of consolidated EBIT (INR62.2b). The telecom segment contributed 2.21%, with an EBIT of INR1.4b.
* In 1QFY26, its JVs reported a loss of INR0.44b (vs. a loss of INR0.3b in 4QFY25 and a profit of INR0.29b in 1QFY25).
* The Board of Directors approved the following:
* Enhancement of the borrowing limit from INR160b to INR250b for FY25-26, through various sources, including private placement of nonconvertible debentures (NCDs).
* Fundraising of up to INR300b during FY26-27 via domestic bonds (secured/unsecured, non-convertible, redeemable, taxable/tax-free) under private placement, in one or more tranches.
* In-principle approval for participation in up to two TBCB projects, with a cumulative estimated cost of INR5b, through a consortium of PWGR and PGInvIT.
* The Analyst Meet is scheduled to be held on Friday, 1st Aug’25.
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