**MARKET BRIEF: POWER GRID CAPEX BOOST & Q3 EARNINGS** **Stock Surge & Market Reaction** Power Grid Corporation of India Limited (PGCIL) shares witnessed a sharp rally on Monday, February 2, 2026, trading with gains of over **4-7%** intraday. The stock price climbed above **₹260**, driven by renewed investor confidence in the company’s growth trajectory and raised capital expenditure targets. **Q3 FY26 Financial Highlights** The state-owned transmission utility delivered a robust performance for the quarter ended December 31, 2025: * **Net Profit:** Rose **8%** YoY to **₹4,185 crore**, reflecting operational efficiency. * **Revenue:** Jumped **~10%** YoY to **₹12,599 crore**, supported by higher asset capitalization and transmission income. * **Expenses:** Showed sequential moderation, aiding margin stability. **Guidance Upgrade: The Key Trigger** The primary catalyst for the rally was the management's decision to hike its execution guidance. * **Capex Target Raised:** The FY26 capital expenditure guidance has been increased to **₹32,000 crore**, up from earlier estimates. * **Execution Visibility:** The revision signals strong execution capabilities and a robust pipeline, particularly aligned with India's accelerated energy transition and infrastructure demand. **Dividend Announcement** Alongside the results, the Board declared a second interim dividend of **₹3.25** per equity share. The record date for the payout has been fixed as **February 9, 2026**. **Investor Outlook** Market sentiment remains positive as the raised capitalization targets alleviate concerns regarding growth saturation. With the power sector entering a high-investment phase for renewables and grid modernization, Power Grid’s aggressive capex push is viewed as a strategic pivot toward sustained long-term value creation.