Powergrid Infra.

POWERGRID Infrastructure Investment Trust (PGInvIT) reported a total consolidated income of ₹13,050.55 million for FY25, with operational revenue at ₹12,664.93 million. Profit after tax for FY25 significantly increased to ₹11,718.93 million, up from ₹9,817.32 million in FY24, marking a 19.36% YoY growth. Earnings per unit also saw a substantial rise to ₹12.92 for FY25, compared to ₹10.18 in the previous fiscal year. The fair value NAV per unit increased to ₹94.12 from ₹85.28 in FY24.

For Q4 FY25, PGInvIT declared a distribution of ₹3 per unit, bringing the total distribution for FY25 to ₹12 per unit, consistent with its guidance. This marks the 15th consecutive quarterly distribution since listing, with a cumulative distribution of ₹46.50 per unit since its IPO, totaling over ₹42.31 billion. The Trust aims to maintain a distribution of ₹12 per unit for FY26, adhering to its policy of distributing at least 90% of Net Distributable Cash Flows (NDCF).

PGInvIT's assets demonstrated strong operational performance, with an average availability exceeding 98% across all SPVs for FY25, surpassing stipulated targets. The Trust reported no accidents during FY25, maintaining a consistent safety track record. One of its SPVs, PPTL, is progressing well on a 400 kV line bay project for RE Integration, scheduled for completion by December 2025. Additionally, PGInvIT provided medical equipment to 14 primary health centers, incurring a total CSR expenditure of ₹6.75 crores across its 5 SPVs.

The Trust successfully completed the acquisition of the remaining 26% equity shareholding in four SPVs (KATL, PPTL, WTL, JPTL) on December 30, 2024, funded through debt. This acquisition aims to enhance returns for unitholders and extend the life of consistent returns. Management highlighted a robust future pipeline for the transmission sector, with 84 ISTS projects under implementation, 39 by private players, which are expected to present significant acquisition opportunities as they near completion. The Trust is also exploring state utility asset monetization, having conducted workshops with the Central Electricity Authority (CEA) for this purpose.

As of March 31, 2025, PGInvIT's outstanding external borrowing stood at ₹10,723.19 million, comprising a ₹5,669.51 million loan from HDFC Bank and an additional ₹5,053.68 million loan raised in December 2024 for acquisitions. The average cost of debt for FY25 was 7.92%. The Trust maintains a strong financial position, evidenced by its highest credit rating of AAA with a stable outlook from ICRA, CRISIL, and CARE Rating, positioning it well for future debt-funded acquisitions.

Management acknowledged the challenge of limited availability of operational assets for acquisition, which is crucial for sustaining future DPU. They indicated that without new acquisitions, DPU could decline in FY27/28 due to increasing expenses and declining revenues from existing assets. While open to diversifying into renewables, management noted a valuation mismatch, making such assets less attractive for the InvIT structure. The focus remains on acquiring transmission assets, actively tracking under-construction projects and state-level asset monetization initiatives.