India is undergoing rapid economic growth and this has increased the burden on the country’s infrastructure. Infrastructure deficiency would impede the growth of India and this has been recognized by the policy makers. In past few years, collective efforts have been made by the governments to accelerate the infrastructure development. Telecommunications, Roads, Ports and Airports have seen sea changes. On similar lines, Power Sector in India has also seen many changes. India’s demand is likely to cross 300GW in next decades. Power Grid Corporation of India Limited (PGCIL) is state owned electric utilities company in India.  Power Grid wheels about 50% of the total power generated in India on its transmission network. Power Grid has consistently maintained the transmission system availability over 99.00% which is at par the international utilities. Therefore it is always important to know the financial management practices prevalent in the company. In this paper, we study the financial management and profitability analysis of PGCIL by taking twelve year data from 2002to2014. One of the most frequently used tools of financial ratio analysis is profitability ratio which is used to determine the company’s bottom line and its return to its investors. Profitability measures are important to company and owners alike. If a small business has outside investors who have put their own money into the company, the company certainly has to show profitability to those equity investors. The result of statistical analysis indicates the financial health and impact of recession during 2007-08 on the financial performance of PGCIL