1. Auditor’s Note
- The auditors have conducted limited reviews of both standalone and consolidated financial results for the quarter and nine months ended 31 December 2025.
- The audit reports express unmodified conclusions/opinions with no qualifications or concerns.
- The auditors confirm compliance with applicable accounting standards (Ind AS 34) and regulatory requirements.
- Some subsidiaries and joint ventures’ interim results were not reviewed by auditors but are considered not material to the Group.
- No material misstatements or deviations were noted.
- Limited assurance certificates were issued for:
- Maintenance of security cover (Asset Cover) for listed non-convertible debt securities.
- Utilization of funds raised from bond issuances.
- Conclusion: Auditor’s notes are standard with no qualifications or issues.
2. Financial Performance
2.1 Consolidated Financial Results (₹ Crore)
| Particulars | Q3 FY26 (31.12.2025) | Q2 FY26 (30.09.2025) | Q3 FY25 (31.12.2024) | 9M FY26 (31.12.2025) | 9M FY25 (31.12.2024) | FY25 (31.03.2025) Audited |
|---|
| Revenue from Operations | 12,395.09 | 11,475.95 | 11,233.03 | 35,067.26 | 33,516.97 | 45,792.32 |
| Other Income | 203.99 | 194.29 | 510.03 | 646.48 | 1,351.61 | 1,667.06 |
| Total Income (Revenue + Other Income) | 12,599.08 | 11,670.24 | 11,743.06 | 35,713.74 | 34,868.58 | 47,459.38 |
| Expenses: | | | | | | |
| Employee Benefits Expense | 659.28 | 668.04 | 596.74 | 1,967.89 | 1,835.04 | 2,604.40 |
| Finance Costs | 2,190.50 | 2,148.07 | 1,917.41 | 6,272.85 | 6,397.47 | 8,700.13 |
| Depreciation and Amortisation Expense | 3,381.46 | 3,223.12 | 3,216.19 | 9,735.05 | 9,708.64 | 12,904.15 |
| Other Expenses | 1,082.83 | 1,694.17 | 1,098.31 | 4,185.91 | 2,840.16 | 4,122.55 |
| Total Expenses | 7,314.07 | 7,733.40 | 6,828.65 | 22,161.70 | 20,781.31 | 28,331.23 |
| Profit before Share of net profits of investments in Joint Ventures, Tax and Regulatory Deferral Account Balances | 5,285.01 | 3,936.84 | 4,914.41 | 13,552.04 | 14,087.27 | 19,128.15 |
| Share of net profits/(loss) of investments in Joint Ventures (Equity Method) | (46.22) | (58.67) | (5.09) | (149.33) | (80.68) | (110.26) |
| Profit before Tax and Regulatory Deferral Account Balances | 5,238.79 | 3,878.17 | 4,909.32 | 13,402.71 | 14,006.59 | 19,017.89 |
| Tax Expense: | | | | | | |
| - Current Tax (Current Year) | 934.55 | 701.01 | 881.29 | 2,410.61 | 2,423.15 | 3,362.25 |
| - Earlier Years | - | - | 0.32 | - | 0.32 | 0.02 |
| - Deferred Tax | 377.90 | 128.35 | 208.55 | 599.19 | 430.47 | 410.49 |
| Total Tax Expense | 1,312.45 | 829.36 | 1,090.16 | 3,009.80 | 2,853.94 | 3,772.76 |
| Profit for the period before Regulatory Deferral Account Balances | 3,926.34 | 3,048.81 | 3,819.16 | 10,392.91 | 11,152.65 | 15,245.13 |
| Net movement in Regulatory Deferral Account Balances (Income/(Expenses) net of tax) | 258.62 | 517.27 | 42.47 | 988.71 | 225.92 | 276.31 |
| Profit for the period | 4,184.96 | 3,566.08 | 3,861.63 | 11,381.62 | 11,378.57 | 15,521.44 |
| Other Comprehensive Income (net of tax) | | | | | | |
| - Items not to be reclassified to profit or loss | (84.47) | 46.18 | (116.41) | 151.43 | (157.62) | (239.34) |
| - Items to be reclassified to profit or loss | 59.95 | - | - | 59.95 | - | - |
| Share of other comprehensive income of Joint Ventures | 2.09 | - | 0.06 | 3.13 | (1.17) | 3.06 |
| Total Comprehensive Income | 4,162.53 | 3,612.26 | 3,745.28 | 11,596.13 | 11,219.78 | 15,285.16 |
| Paid up Equity Share Capital (₹10 each) | 9,300.60 | 9,300.60 | 9,300.60 | 9,300.60 | 9,300.60 | 9,300.60 |
| Earnings per equity share including movement in Regulatory Deferral Account Balances (Basic & Diluted) (₹) | 4.50 | 3.84 | 4.15 | 12.24 | 12.23 | 16.69 |
| Earnings per equity share excluding movement in Regulatory Deferral Account Balances (Basic & Diluted) (₹) | 4.22 | 3.28 | 4.11 | 11.17 | 11.99 | 16.39 |
2.2 Standalone Financial Results (₹ Crore)
| Particulars | Q3 FY26 (31.12.2025) | Q2 FY26 (30.09.2025) | Q3 FY25 (31.12.2024) | 9M FY26 (31.12.2025) | 9M FY25 (31.12.2024) | FY25 (31.03.2025) Audited |
|---|
| Revenue from Operations | 11,005.28 | 9,999.60 | 10,120.72 | 30,933.11 | 30,448.94 | 41,431.49 |
| Other Income | 1,430.75 | 1,348.67 | 1,488.50 | 4,108.07 | 3,393.99 | 4,893.83 |
| Total Income (Revenue + Other Income) | 12,436.03 | 11,348.27 | 11,609.22 | 35,041.18 | 33,842.93 | 46,325.32 |
| Expenses: | | | | | | |
| Employee Benefits Expense | 654.36 | 662.88 | 594.41 | 1,951.15 | 1,828.76 | 2,593.00 |
| Finance Costs | 2,573.76 | 2,557.95 | 2,127.12 | 7,436.16 | 6,891.81 | 9,479.32 |
| Depreciation and Amortisation Expense | 3,207.38 | 3,056.19 | 3,074.18 | 9,233.32 | 9,309.07 | 12,352.23 |
| Other Expenses | 931.57 | 1,327.12 | 1,003.60 | 3,435.19 | 2,566.35 | 3,561.96 |
| Total Expenses | 7,367.07 | 7,604.14 | 6,799.31 | 22,055.82 | 20,595.99 | 27,986.51 |
| Profit before Tax and Regulatory Deferral Account Balances | 5,068.96 | 3,744.13 | 4,809.91 | 12,985.36 | 13,246.94 | 18,338.81 |
| Tax Expense: | | | | | | |
| - Current Tax (Current Year) | 882.15 | 650.92 | 834.89 | 2,255.85 | 2,289.50 | 3,178.13 |
| - Earlier Years | - | - | (0.30) | - | - | - |
| - Deferred Tax | 287.03 | 57.67 | 125.07 | 355.24 | 170.02 | 88.03 |
| Total Tax Expense | 1,169.18 | 708.59 | 959.96 | 2,611.09 | 2,459.52 | 3,265.86 |
| Profit for the period before Regulatory Deferral Account Balances | 3,899.78 | 3,035.54 | 3,849.95 | 10,374.27 | 10,787.42 | 15,072.95 |
| Net movement in Regulatory Deferral Account Balances (Income/(Expenses) net of tax) | 260.39 | 519.26 | 44.14 | 993.93 | 229.98 | 280.62 |
| Profit for the period | 4,160.17 | 3,554.80 | 3,894.09 | 11,368.20 | 11,017.40 | 15,353.57 |
| Other Comprehensive Income (net of tax) | | | | | | |
| - Items not to be reclassified to profit or loss | (84.48) | 46.18 | (116.41) | 151.41 | (157.61) | (239.33) |
| Total Comprehensive Income | 4,075.69 | 3,600.98 | 3,777.68 | 11,519.61 | 10,859.79 | 15,114.24 |
| Paid up Equity Share Capital (₹10 each) | 9,300.60 | 9,300.60 | 9,300.60 | 9,300.60 | 9,300.60 | 9,300.60 |
| Earnings per equity share including movement in Regulatory Deferral Account Balances (Basic & Diluted) (₹) | 4.47 | 3.82 | 4.19 | 12.22 | 11.85 | 16.51 |
| Earnings per equity share excluding movement in Regulatory Deferral Account Balances (Basic & Diluted) (₹) | 4.19 | 3.26 | 4.14 | 11.15 | 11.60 | 16.21 |
3. Detailed Notes / Management Commentary
- Provisioning: Provision for taxes, employee benefits, and other contingencies are made on an estimated basis.
- Accounting Policies: No material changes in accounting policies reported.
- Regulatory Tariff:
- Transmission income recognized as per CERC tariff orders and provisional tariff regulations for assets pending tariff orders.
- Transmission income includes adjustments for earlier years (₹508.65 Cr for Q3 FY26).
- Mergers/Amalgamations:
- Several schemes of arrangement approved for merger/amalgamation of wholly owned subsidiaries into other subsidiaries, with petitions filed and pending final orders.
- Sale of Joint Ventures:
- Board approved sale of entire stakes in Torrent Power Grid Limited (ceased to be JV from 30 May 2025), Sikkim Power Transmission Limited, and Parbati Koldam Transmission Company Limited. Investments classified as assets held for sale.
- Labour Codes:
- New Labour Codes effective from 21 Nov 2025; management assessed incremental impact as not material and recognized in current results.
- Dividends:
- Interim dividend of ₹4.50 per share declared and paid in Dec 2025.
- Second interim dividend of ₹3.25 per share declared in Jan 2026.
- Borrowing Plans:
- Proposal to borrow/tie up credit limits up to ₹32,000 Cr during FY26 through various sources including bonds, loans, ECB, etc.
- Asset Cover & Bond Utilization:
- Asset cover ratio maintained at 1.10 times as per statutory auditor certificate.
- Funds raised through bond issuances (₹5,000 Cr in Q2 FY26 and ₹3,704 Cr in Q3 FY26) utilized as per stated purposes with no deviations.
4. Segment Information (Consolidated)
| Particulars | Q3 FY26 (31.12.2025) | Q2 FY26 (30.09.2025) | Q3 FY25 (31.12.2024) | 9M FY26 (31.12.2025) | 9M FY25 (31.12.2024) | FY25 (31.03.2025) Audited |
|---|
| Segment Revenue (including allocable Other Income) | | | | | | |
| - Transmission | 11,801.23 | 10,721.76 | 11,140.59 | 33,217.65 | 33,066.15 | 44,776.80 |
| - Consultancy | 496.51 | 614.40 | 240.71 | 1,516.83 | 619.54 | 1,137.28 |
| - Telecom | 298.79 | 291.06 | 274.34 | 879.34 | 825.25 | 1,128.10 |
| Total Segment Revenue | 12,596.53 | 11,627.22 | 11,655.04 | 35,613.82 | 34,510.94 | 47,042.18 |
| Less: Inter Segment Revenue | 101.69 | 86.78 | 79.12 | 267.11 | 189.38 | 291.75 |
| Total Revenue including allocable Other Income | 12,494.84 | 11,540.44 | 11,576.52 | 35,346.71 | 34,321.56 | 46,750.43 |
| Other Unallocated Income | 104.24 | 129.80 | 166.54 | 367.03 | 547.02 | 708.95 |
| Total Income | 12,599.08 | 11,670.24 | 11,743.06 | 35,713.74 | 34,868.58 | 47,459.38 |
| Segment Results (PBIT) | | | | | | |
| - Transmission | 7,451.05 | 6,399.21 | 6,545.30 | 20,068.05 | 19,760.09 | 26,781.67 |
| - Consultancy | 87.34 | 44.90 | 44.97 | 162.82 | 71.26 | 150.09 |
| - Telecom | 146.25 | 137.79 | 126.48 | 425.02 | 380.12 | 522.36 |
| Total PBIT | 7,684.64 | 6,581.90 | 6,716.75 | 20,655.89 | 20,211.47 | 27,454.12 |
| Add: Share of net profits of Joint Ventures | (46.22) | (58.67) | (5.09) | (149.33) | (80.68) | (110.26) |
| Add: Other Unallocated Income | 104.24 | 129.80 | 166.54 | 367.03 | 547.02 | 708.95 |
| Less: Unallocated Interest and Finance Charges | 2,190.50 | 2,148.07 | 1,917.41 | 6,272.85 | 6,397.47 | 8,700.13 |
| Profit before Tax (including Regulatory Deferral Account Balances) | 5,552.16 | 4,504.96 | 4,960.79 | 14,600.74 | 14,280.34 | 19,352.68 |
| Less: Tax Expense | 1,367.20 | 938.88 | 1,099.16 | 3,219.12 | 2,901.77 | 3,831.24 |
| Profit after Tax | 4,184.96 | 3,566.08 | 3,861.63 | 11,381.62 | 11,378.57 | 15,521.44 |
Segment EBIT Margins (PBIT / Segment Revenue):
| Segment | Q3 FY26 | Q2 FY26 | Q3 FY25 | 9M FY26 | 9M FY25 | FY25 Audited |
|---|
| Transmission | 63.2% | 59.7% | 58.7% | 60.4% | 59.7% | 59.8% |
| Consultancy | 17.6% | 7.3% | 18.7% | 10.7% | 11.5% | 13.2% |
| Telecom | 48.9% | 47.4% | 46.1% | 48.3% | 46.1% | 46.3% |
5. Capex, Projects, and Corporate Activity
- Mergers/Amalgamations:
- Multiple schemes approved for merger of wholly owned subsidiaries into other subsidiaries, with petitions filed and pending final orders.
- Joint Ventures:
- Board approved sale of entire stakes in Torrent Power Grid Limited (ceased to be JV from 30 May 2025), Sikkim Power Transmission Limited, and Parbati Koldam Transmission Company Limited. Investments classified as assets held for sale.
- Capital Expenditure:
- Capital Work-in-Progress on books: ₹11,357.36 Cr (Consolidated).
- Borrowings:
- Proposal to borrow/tie up credit limits up to ₹32,000 Cr during FY26 through various sources.
- Bond Issuances:
- Raised ₹5,000 Cr (Aug 2025) and ₹3,704 Cr (Dec 2025) via private placement of non-convertible debentures.
- Utilization of proceeds confirmed with no deviations.
- Impairments/Writedowns:
- No specific impairments or writebacks reported.
- Restructuring/Cost Cutting:
- No explicit mention of restructuring or cost-cutting measures.
6. Standalone vs Consolidated
- Both Standalone and Consolidated financial results are provided and reviewed.
- Consolidated results include 55 subsidiaries (all 100% owned) and multiple joint ventures.
- Consolidated figures include share of profits/losses from joint ventures.
- Minor differences in revenue and expenses due to consolidation adjustments and JV results.
Summary Tables
Consolidated Financial Summary (₹ Crore)
| Particulars | Q3 FY26 | Q2 FY26 | Q3 FY25 | 9M FY26 | 9M FY25 | FY25 Audited |
|---|
| Total Income | 12,599 | 11,670 | 11,743 | 35,714 | 34,869 | 47,459 |
| Employee Benefits Expense | 659 | 668 | 597 | 1,968 | 1,835 | 2,604 |
| Finance Costs | 2,191 | 2,148 | 1,917 | 6,273 | 6,397 | 8,700 |
| Depreciation & Amortisation | 3,381 | 3,223 | 3,216 | 9,735 | 9,709 | 12,904 |
| Other Expenses | 1,083 | 1,694 | 1,098 | 4,186 | 2,840 | 4,123 |
| Total Expenses | 7,314 | 7,733 | 6,829 | 22,162 | 20,781 | 28,331 |
| Profit before Tax & Regulatory Deferral | 5,239 | 3,878 | 4,909 | 13,403 | 14,007 | 19,018 |
| Profit for the period | 4,185 | 3,566 | 3,862 | 11,382 | 11,379 | 15,521 |
| EPS (Basic & Diluted) (₹) | 4.50 | 3.84 | 4.15 | 12.24 | 12.23 | 16.69 |
Standalone Financial Summary (₹ Crore)
| Particulars | Q3 FY26 | Q2 FY26 | Q3 FY25 | 9M FY26 | 9M FY25 | FY25 Audited |
|---|
| Total Income | 12,436 | 11,348 | 11,609 | 35,041 | 33,843 | 46,325 |
| Employee Benefits Expense | 654 | 663 | 594 | 1,951 | 1,829 | 2,593 |
| Finance Costs | 2,574 | 2,558 | 2,127 | 7,436 | 6,892 | 9,479 |
| Depreciation & Amortisation | 3,207 | 3,056 | 3,074 | 9,233 | 9,309 | 12,352 |
| Other Expenses | 932 | 1,327 | 1,004 | 3,435 | 2,566 | 3,562 |
| Total Expenses | 7,367 | 7,604 | 6,799 | 22,056 | 20,596 | 27,987 |
| Profit before Tax & Regulatory Deferral | 5,069 | 3,744 | 4,810 | 12,985 | 13,247 | 18,339 |
| Profit for the period | 4,160 | 3,555 | 3,894 | 11,368 | 11,017 | 15,354 |
| EPS (Basic & Diluted) (₹) | 4.47 | 3.82 | 4.19 | 12.22 | 11.85 | 16.51 |
Key Actionable Points for Investment Analysis Team
- Strong Profitability: Both standalone and consolidated PAT show healthy growth YoY and QoQ.
- Stable Margins: Operating margins remain high (~85-90% consolidated; ~97-99% standalone).
- Robust Balance Sheet: Debt equity ratio stable around 1.4-1.45; DSCR and ISCR ratios indicate comfortable debt servicing.
- Dividend Policy: Interim dividends declared twice in FY26, indicating strong cash flow and shareholder returns.
- Corporate Actions: Ongoing mergers of subsidiaries to simplify structure; sale of JV stakes to focus on core business.
- Regulatory Environment: Income recognition aligned with new CERC tariff regulations; no adverse impact noted.
- Capex & Borrowings: Significant capex underway; borrowing plans up to ₹32,000 Cr in FY26 to fund growth.
- No Auditor Qualifications: Clean audit reports and confirmations on bond utilization and asset cover.
- Segment Focus: Transmission remains core revenue and profit driver; consultancy and telecom segments growing but smaller.
Conclusion
The company demonstrates strong financial health with consistent revenue and profit growth, stable margins, and prudent financial management. Corporate restructuring and JV divestments indicate strategic focus. The borrowing plans and capex suggest continued investment in growth. No auditor concerns or deviations reported. The investment analysis team can consider these results as positive indicators for the company’s operational and financial performance.
