State-owned Power Grid Corporation of India on Thursday, January 8, said it has emerged as the successful bidder under tariff-based competitive bidding to establish an inter-state transmission system aimed at integrating additional renewable energy capacity in Karnataka.

The project involves strengthening the transmission network to support renewable energy integration at Davanagere (0.25 GW) and Bellary (2.75 GW), taking the total capacity addition to 3 GW. Awarded on a build, own, operate and transfer basis, the project includes the construction of a 400 kV double-circuit transmission line traversing Karnataka, along with associated line bay works at both ends.

The scope also covers augmentation of existing infrastructure, including inter-connecting transformers and line bays at the Davanagere and Bellary pooling stations. Power Grid said it has received the letter of intent for the project on January 8.

On the financial front, Power Grid reported a 6 per cent year-on-year decline in net profit to Rs 35.66 billion in Q2 FY26, compared with Rs 37.93 billion in the same quarter last year, missing market estimates. Revenue rose 1.8 per cent year-on-year to Rs 114.76 billion from Rs 112.77 billion.

Ebitda declined 6.1 per cent to Rs 91.14 billion from Rs 97.01 billion a year earlier, while margins narrowed to 79.4 per cent from 86 per cent in the corresponding quarter. The company said margin contraction reflected higher operating costs and network expansion-related expenses.

The board of directors has approved the payment of a first interim dividend of Rs 4.50 per equity share of face value Rs 10, representing 45 per cent of the paid-up equity share capital for FY26.

Shares of Power Grid Corporation of India ended at Rs 259.25 on the BSE, down Rs 4.85, or 1.84 per cent, on January 8.