Neutral Power Grid Corporation of India; target of Rs 300: Motilal Oswal

Neutral

Motilal Oswal's research report on Power Grid Corporation of India

In 2QFY26, Power Grid Corporation (PWGR) reported a standalone (SA) revenue of INR100b (-3% YoY), 6% below our estimate. EBITDA was 13% below our estimate at INR80.1b (-9% YoY), hit by a 55% YoY surge in other expenses. Reported PAT was INR35.5b, 4% below estimates (-4%YoY), supported by higher other income, lower depreciation (likely due to reduced capitalization), and a positive net regulatory deferral movement of INR 5.2b. Adj. SA PAT was 16% below our est. of INR31.2b, mainly due to a miss at the EBITDA level.

Outlook

We derive our TP of INR300 for PWGR based on Dec’27 BVPS and a P/B multiple of 2.5x.

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