Power Grid Corporation of India Ltd witnessed a slight dip in its stock price on Tuesday, May 20, following the release of its Q4 results for the financial year ending March 2025. The shares fell by 0.6%, trading at ₹302.15 on the NSE during early hours, as the company reported a muted financial performance.
The quarterly report showed a marginal decline in net profit, which disappointed investors expecting a stronger finish to the fiscal year. Revenue growth also remained lukewarm, failing to excite market participants. This combination of modest earnings and slower revenue expansion led to subdued investor sentiment.
Despite the cautious outlook, Power Grid announced a final dividend, which provided some relief to shareholders. However, it wasn’t enough to spark a rally, especially as the market also took note of the company’s strategic exits from certain joint ventures—a move seen as part of Power Grid’s portfolio optimization.
Global brokerage Morgan Stanley maintained its ‘Equal-Weight’ rating on the stock, suggesting that while the long-term fundamentals remain intact, there’s limited immediate upside from current levels. This neutral stance reinforced the cautious mood among investors.
Muted Q4 performance, slow revenue growth, and market sentiment together weighed on Power Grid shares despite a dividend declaration.
The stock’s movement reflects broader concerns around growth expectations in the power transmission sector, especially for public sector undertakings. While Power Grid remains a key player in India’s power infrastructure, the Q4 performance has reminded investors to temper short-term expectations.
Going forward, investors will closely watch Power Grid’s upcoming project pipeline, strategic initiatives, and regulatory developments that could influence earnings growth and operational efficiency.
