Sterlite Grid 5 Annual Reports, Balance Sheet and Financials

Sterlite PowerGrid 5 Limited Consolidated Balance Sheet (Rs in Millions)

Sterlite PowerGrid 5 Limited Consolidated Profit & Loss Statement (Rs in Millions)

Sterlite PowerGrid 5 Limited Consolidated Cash Flow Statement (Rs in Millions)

Summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flows from Operating Activities

The company reported a profit from continuing operations of ₹266.35 million in 2025, compared to a loss of ₹793.38 million in 2024. However, after including losses from discontinued operations and taxation adjustments, the company recorded a loss before tax of ₹3,670.76 million for 2025, which is lower than the loss of ₹5,881.38 million in 2024. A number of significant non-cash and non-operating adjustments were applied, including depreciation, foreign exchange translation losses, finance costs, and the share of loss from joint ventures. Some large gains such as the sale of transmission assets and conversion of subsidiaries into joint ventures reduced the loss in 2025. After all these adjustments, the operating profit before working-capital changes stood at ₹2,904.75 million, higher than ₹1,968.62 million in 2024.

Working-capital movements had a major negative impact in 2025. Large increases in other liabilities, financial liabilities, and trade receivables were offset by substantial decreases in other assets and financial assets, leading to a working-capital outflow of ₹11,536.63 million. Consequently, cash used in operations amounted to ₹8,631.88 million in 2025 compared with ₹16,368.02 million in 2024. After tax payments, the net cash used in operating activities was ₹9,355.13 million, an improvement over the ₹16,667.00 million net outflow in the prior year.

Cash Flows from Investing Activities

Investing activities show a net inflow of ₹4,647.98 million in 2025, compared with a net outflow of ₹6,497.54 million in 2024. Major inflows in 2025 included the redemption of non-convertible debentures (₹5,657.86 million), optionally convertible debentures (₹1,424.18 million), loans repaid (₹4,936.22 million), and proceeds from sale of transmission assets (₹2,291.87 million). The company also received consideration from the transfer of the Infra EPC business.

On the outflow side, the most significant item in 2025 was the investment in equity, CCD, CCPS, and NCD totaling ₹12,069.81 million, far higher than in 2024. Other investments included deposits and loans. Overall, the strong inflows from debt redemptions and asset monetisation more than offset the investment outflows, resulting in a net positive investing cash flow for 2025.

Cash Flows from Financing Activities

Financing activities generated a healthy net inflow of ₹4,061.71 million in 2025, although this is much lower than the ₹25,466.75 million inflow in 2024. The company raised ₹11,632.83 million in long-term borrowings, partly offset by repayment of long-term borrowings amounting to ₹9,227.03 million. Additional inflows came from short-term borrowings and a loan from a related party. Interest payments of ₹5,411.60 million were a major outflow under this segment. Compared to 2024, funding inflows in 2025 reduced significantly as the prior year had unusually high long-term borrowings.

Net Change in Cash and Closing Position

Combining all three activities, the company experienced a net decrease in cash of ₹645.44 million in 2025, contrasting with the increase of ₹2,302.21 million in 2024. The cash balance at the beginning of 2025 was ₹3,231.86 million, and after adjusting for foreign exchange losses and the reduction in cash due to loss of control of subsidiaries, the year-end cash balance stood at ₹1,264.44 million.

Sterlite PowerGrid 5 Limited Financial Ratios

Summary of the financial ratios for the years 2025 and 2024:

Current Ratio

The current ratio improved significantly from 0.93 in 2024 to 1.40 in 2025. This ratio measures the company’s ability to meet short-term obligations using its current assets. A ratio above 1 generally indicates healthy liquidity. The improvement in 2025 suggests that the company strengthened its short-term financial position—possibly through higher current assets or lower short-term liabilities. In 2024, the ratio below 1 indicated liquidity stress, but 2025 reflects a more comfortable working-capital position.

Debt-Equity Ratio

The debt-equity ratio increased from 0.07 in 2024 to 0.30 in 2025. This measures financial leverage and indicates how much of the company’s financing comes from debt relative to equity. Even though the ratio has increased, 0.30 is still considered low and manageable, meaning the company is still conservatively leveraged.

Debt Service Coverage Ratio (DSCR)

The DSCR improved from -0.75 in 2024 to -0.27 in 2025, although it still remains negative. DSCR indicates the company’s ability to service its debt from operating cash flows. A positive ratio (>1) is desirable, showing adequate ability to pay interest and principal.

Return on Equity (ROE)

ROE improved dramatically from -12.86% in 2024 to +1.88% in 2025. This ratio indicates how effectively the company generates profits from shareholders’ equity. The negative ROE in 2024 reflected losses and shareholder value erosion. The return to a positive ROE in 2025 signifies that the company has begun generating profits for its shareholders, driven by better operating performance and improved profitability metrics.

Inventory Turnover Ratio

The inventory turnover ratio increased from 3.21 in 2024 to 3.59 in 2025. This ratio measures how efficiently the company manages its inventory by indicating how many times inventory is sold and replaced during the year.

Trade Receivables Turnover Ratio

This ratio declined from 1.61 in 2024 to 1.32 in 2025. It shows how quickly the company collects receivables from customers. A lower turnover indicates slower collection cycles in 2025, suggesting that more funds are tied up in receivables. Trade Payables Turnover Ratio

The trade payables turnover ratio decreased from 2.23 in 2024 to 1.96 in 2025. This ratio indicates how quickly the company pays its suppliers. A lower turnover means payments to suppliers slowed down in 2025. This could be a deliberate working-capital management strategy to preserve cash or could signal liquidity pressure.

Net Capital Turnover Ratio

The net capital turnover ratio improved from -9.47 in 2024 to 3.73 in 2025. This ratio measures how efficiently the company generates revenue from its working capital. The negative turnover in 2024 indicated severe inefficiencies or negative working capital. In 2025, the strong positive ratio suggests a major improvement in operational efficiency, better asset utilisation, and healthier working-capital management.

Net Profit Ratio

The net profit ratio improved substantially from -14.65% in 2024 to +2.81% in 2025. This ratio measures how much net profit is generated from total revenue. The shift from negative to positive profitability reflects a strong turnaround—better cost control, improved margins, or higher revenue realisation in 2025.

Return on Capital Employed (ROCE)

ROCE improved from -14.45% in 2024 to +13.78% in 2025, showing significant enhancement in profitability relative to the capital used in the business. This suggests the company has started generating healthy returns from its long-term investments after a loss-making prior year.

Return on Investment (ROI)

ROI increased from 0% in 2024 to 21.19% in 2025. This measure reflects returns generated from specific investments made by the company. The sharp improvement indicates that investments in 2025—such as securities, debentures, or asset monetisation—delivered strong returns compared to no returns in the previous year.