Highlights

• Ambit Capital Pvt Ltd has issued a sell rating on Power Grid Corporation of India Limited with a target price of ₹285.
• Power Grid’s share price has declined on both year-to-date and one-year basis.
• The company reported a profit after tax of ₹3,631 crore and total income of ₹11,444 crore in first quarter of FY26.

Power Grid Corporation of India Limited (NSE:POWERGRID), a Maharatna central public sector enterprise under the Ministry of Power, has recently come under analyst focus after Ambit Capital Pvt Ltd assigned a sell rating on the stock. The brokerage has set a target price of ₹285. As of 30 December 2025, Power Grid shares were trading at ₹260.35, marginally lower by 0.10% during the session. The stock’s performance over recent months has remained under pressure, with a year-to-date decline of nearly 16.14% and a one-year drop of about 15.36%.

Analyst Rating Draws Market Attention

The sell rating from Ambit Capital places Power Grid in the spotlight among institutional and retail investors. The target price of ₹285 suggests a cautious outlook from the brokerage on the stock’s near-term trajectory.

Q1FY26 Financial Performance

Power Grid announced its unaudited financial results for the first quarter of FY26, ended 30 June 2025. On a consolidated basis, the company reported a profit after tax of ₹3,631 crore and total income of ₹11,444 crore. On a standalone basis, profit after tax stood at ₹3,653 crore, while total income was reported at ₹11,257 crore. This translated into year-on-year growth of 7% in profit and 4% in income on a standalone basis.

Capital Expenditure and Asset Base Expansion

During Q1FY26, Power Grid incurred capital expenditure of ₹6,981 crore on a consolidated basis. Assets worth ₹1,683 crore were capitalised during the period, excluding foreign exchange rate variation and including assets capitalised as finance leases. As of 30 June 2025, the company’s gross fixed assets on a consolidated basis stood at ₹2,92,446 crore, including gross lease receivables.

Transmission Network and Operational Metrics

By the end of the first quarter of FY26, Power Grid and its subsidiaries operated 1,80,533 circuit kilometres of transmission lines, supported by 284 substations strategically located across India. The total transformation capacity stood at 5,66,831 MVA. Through the use of automation, digitisation, and advanced maintenance techniques, the company maintained an average transmission system availability of 99.84% during the quarter.

Stock Performance Amid Rating Update

Power Grid’s share price has remained under pressure in the market. The stock’s decline of over 16% on a year-to-date basis and more than 15% over the past year.