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POPOWERGRID

Power Grid Corporation of India Q1 FY27 results (Apr–Jun 2026) and concall

Power ·Concall AI· Call held 7 Aug 2026

Company page: Power Grid Corporation of India share price, financials & guidance record

Source transcript

Management summary

Power Grid Corporation of India Limited reported a mixed Q1 FY27, with strong operational performance and significant capitalization growth, but a slight dip in PAT due to regulatory adjustments. The company continues to expand its asset base, secure new projects under TBCB, and make progress on ESG targets. A robust bidding pipeline and strategic focus on RE integration and BESS projects underpin future growth.

Highlights

  • Gross fixed assets increased to over ₹3.25 lakh crore.

  • Q1 FY27 capitalization of ₹5,277 crores, up 213.5% from ₹1,683 crores in Q1 FY26.

  • Commissioned 1,635 circuit kilometers of transmission lines and 10,500 MVA of transformation capacity.

  • Won 6 TBCB transmission projects with a total annual tariff of ₹2,200 crores.

  • Robust collections with 104% realization (₹11,404 crores) and reduced receivable days from 19.41 to 12.

Concerns

  • PAT impacted by a regulatory drag of ₹560 crores due to depreciation and interest differences between petitions and CERC orders.

  • Dividend from JVs and subsidiaries was lower due to 'held for sale' status of some assets.

Key financials

  1. Transmission Charges (Consolidated) ₹10,905 Cr +2.7%YoY
  2. Total Income (Consolidated) ₹11,697 Cr +2.2%YoY
  3. PAT (Consolidated) ₹3,598 Cr -0.91%YoY
  4. Gross Fixed Assets ₹3.26L Cr +11.4%YoY
  5. Capital Work in Progress ₹50,419 Cr +21.2%YoY
  6. Net Worth ₹1.04L Cr +7.8%YoY
  7. EPS ₹3.87
  8. Book Value per Share ₹111.85

What they filed

Q1 FY27: revenue down 1.3%, net profit down 6.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue10,260 10,121 10,983 9,928 10,000 −3%11,005 +9%9,971 −9%9,795 −1%
EBITDA8,787 8,523 9,223 8,118 8,010 −9%9,419 +11%3,683 −60%8,005 −1%
Net profit3,711 3,894 4,336 3,653 3,555 −4%4,160 +7%4,553 +5%3,411 −7%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹643 Cr Total
  • Telecom ₹391 Cr 60.8%
  • Consultancy ₹252 Cr 39.2%

Order book

high confidence

Total value

₹1,75,000 Cr

as of 2026-06-30 quantified

Inflow this quarter

₹2,200 Cr

Execution

Transmission line implementation timeline revised to 26-30 months

Composition

Mix 2 contract types
  • TBCB (Works in Hand) 83.4%
  • RTM (Works in Hand) 14.3%

Share of order book by contract type

Pipeline

other

Total bidding pipeline (under bidding + to be floated)

The company has a strong order book and a robust bidding pipeline, with significant opportunities in transmission, especially driven by renewable energy integration and new asset classes like synchronous condensers and BESS.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹37,000 Cr (FY27) planned
    The guidance what was given as Rs. 37,000 crore, we are pleased to inform that compared to last year, we have the capex is more than 10% what we have achieved in this quarter in Q1 itself.
  • Debt Debt disclosed
    • New borrowing Green loan agreement with JBIC JPY 80 Bn
    The increase in debt, an obvious indication of the growth path of the company.

Guidance & targets

Capex

  • FY27 Capex Capex · FY27 · High confidence ₹37,000 crores
    The guidance what was given as Rs. 37,000 crore, we are pleased to inform that compared to last year, we have the capex is more than 10% what we have achieved in this quarter in Q1 itself.

    — B. Vamsi Rama Mohan, Chairman & Managing Director

Capitalization

  • FY27 Capitalization Capitalization · FY27 · High confidence ₹30,000 crores
    And on the capitalization front, the guidance standing at Rs. 30,000 crore, it is almost 3.13 times than what we have achieved in the last quarter.

    — B. Vamsi Rama Mohan, Chairman & Managing Director

Capacity

  • Non-fossil capacity addition Capacity · by 2035-36 · High confidence 900+ GW
    the anchor program of 900 plus gigawatt by 2035-'36, Rs. 7.9 lakh crore

    — B. Vamsi Rama Mohan, Chairman & Managing Director

ESG

  • Net Zero Target ESG · by 2047 · High confidence 2047
    Becoming net zero, the target standing at 2047, 20% reduction already achieved and we are inching forward to that date.

    — B. Vamsi Rama Mohan, Chairman & Managing Director

  • Zero Waste to Landfill ESG · by 2030 · High confidence 90%+
    And the other targets in terms of achieving zero waste to landfill, more than 90% achieved and we are close to achieving that by 2030, which the target is set.

    — B. Vamsi Rama Mohan, Chairman & Managing Director

Project Bidding

  • Bidding of ₹7.9 lakh crore capex Project Bidding · next 3-4 years · Medium confidence Spread across 3-4 years
    So, the Rs. 7.9 lakh crore would be spread across maybe another 3 years or so, because we need the systems by '35, '36. The next 3 to 4 years this will have to be spread across.

    — B. Vamsi Rama Mohan, Chairman & Managing Director

Project Execution

  • Transmission line implementation timeline Project Execution · ongoing · High confidence 26-30 months

    Previously 18 months → 26-30 months

    So now, Government of India has revisited these timelines and improved upon, which now stands about 26 to 30 months plus.

    — B. Vamsi Rama Mohan, Chairman & Managing Director

What to watch in Q2 FY27

MRC Rate Finalization and Land Compensation Impact

Next quarter/future quarters
Current Not yet factored into capex estimates
Target Clarity on MRC rates and quantification of impact on project costs

Why it matters

Could materially impact the cost structure of future transmission projects, especially the ₹7.9 lakh crore pipeline.

So obviously, this has not been factored while working upon the estimates, and it is presently not possible to actually even factor in the quantum because that would be emerging only once the MRC rate has been finalized.

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Risks & concerns

  • Regulatory drag on profitability

    medium

    PAT impacted by ₹560 crore in Q1 FY27 due to differences in depreciation (₹330 crore) and interest (₹230 crore) between company filings and CERC orders, inherent to the regulatory regime.

    Management acknowledged

  • Increased land compensation costs (Right of Way)

    medium

    New land compensation guidelines are not yet factored into the ₹7.9 lakh crore capex estimates, potentially leading to higher project costs once MRC rates are finalized.

    Analyst acknowledged

  • Execution delays for transmission projects

    low

    Past aggressive timelines (18 months) were impractical, but revised timelines of 26-30 months are expected to improve project execution.

    Analyst acknowledged

  • Equipment supply challenges

    low

    Past stress on high-capacity transformers and GIS substations is easing due to OEMs ramping up capacity and increased competition from more players.

    Analyst acknowledged

Q&A highlights

6 direct
Quantification of regulatory drag on PAT Direct
For Q1, depreciation and interest, which stands about Rs. 330 crore and owing to the interest because of the differential between our filing and also the CERC order date, that stands about Rs. 230 crore. So, it would be about Rs. 560 crore the drag on account of the regulatory characteristic.

Provides specific figures for the regulatory impact on PAT, clarifying the reasons for flat profitability despite asset growth.

Asked by Apoorva Bahadur

Funding source for TBCB equity investments Direct
All of it is through equity only. Internal accruals. POWERGRID has a strong internal revenue mechanism, and it is capable enough to take care of the quantum of growth what we are foreseeing.

Confirms the company's strong internal accrual generation and self-funding capability for its significant TBCB project equity.

Asked by Apoorva Bahadur

Timeline for bidding out ₹7.9 lakh crore capex Direct
So, the Rs. 7.9 lakh crore would be spread across maybe another 3 years or so, because we need the systems by '35, '36. The next 3 to 4 years this will have to be spread across.

Gives a concrete timeframe for the realization of a major government-backed capex opportunity for the transmission sector.

Asked by Bharanidhar

Inclusion of new land compensation rates in capex estimates Partial
So obviously, this has not been factored while working upon the estimates, and it is presently not possible to actually even factor in the quantum because that would be emerging only once the MRC rate has been finalized.

Identifies a potential future cost escalation for projects, as new land acquisition guidelines are not yet incorporated into large-scale capex estimates.

Asked by Bharanidhar

Execution delays and equipment supply challenges Direct
So now, Government of India has revisited these timelines and improved upon, which now stands about 26 to 30 months plus. ... the stress on the equipment supplies which was there some time back should not be as much what it was before. So that is going to ease.

Addresses past operational bottlenecks, indicating that revised project timelines and improving equipment supply are expected to enhance execution efficiency.

Asked by Bharanidhar

Difference in tariff from CERC orders and company filings Direct
And as the year progressed, the orders started being issued by the regulator, so that particular component dwindled. So, presently, that component is not significant, so you find a variance between the Q1 of the previous year and Q1 of the current year to the extent of Rs. 230 crore for the Q1 of '26 and '27.

Clarifies the accounting treatment and impact of regulatory delays on interest income, explaining the year-on-year variance in this specific revenue component.

Asked by Ketan Jain

Role and progress of BESS projects under regulatory framework Direct
So, POWERGRID is also working upon this very clearly, I mean very intensely, and we have also filed petitions before the regulator after obtaining the consent from the Northern and the Western Region RPCs.

Highlights POWERGRID's proactive engagement in the emerging Battery Energy Storage Systems (BESS) market, signaling a new growth area under regulatory support.

Asked by Jinesh Karia

Separate disclosure of TBCB project contribution to P&L Partial
I do appreciate the concern. In fact, it is an equal concern from my side as well, that you need to appreciate certain regulatory pulls or pushes actually impacts the POWERGRID's financials. I think we will examine that, and with these kind of meets or such other platforms which are there or maybe better disclosures, we will try to make sure that this is properly reaching out to the analysts and the investors alike, so that they continue to appreciate and have confidence on the company as to how we are moving forward. We will examine that.

Indicates a potential future improvement in financial reporting transparency for a key growth driver, which could aid investor analysis.

Asked by Sumit Kishore

3 min read 7 chapters

Detailed narrative

Q1 FY27 Financial Performance Overview

POWERGRID reported consolidated transmission charges of ₹10,905 crore, a 3% increase YoY, and total income of ₹11,697 crore. However, PAT stood at ₹3,598 crore, a slight decrease from ₹3,631 crore in the previous quarter, primarily due to a regulatory drag of ₹560 crore from depreciation (₹330 crore) and interest (₹230 crore) differences. Gross fixed assets grew to ₹3,25,671 crore, with Q1 capitalization reaching ₹5,277 crore, significantly higher than ₹1,683 crore in Q1 FY26.

Operational Highlights and System Availability

The company commissioned 1,635 circuit kilometers of transmission lines and added 10,500 MVA of transformation capacity in Q1 FY27. Key projects included 765 kV lines in Kurnool-Maheshwaram and Dausa-Beawar, and new substations in Koppal. System availability remained high at 99.8%. POWERGRID also highlighted the successful indigenous development of 220 kV mobile GIS bays, with 132 kV and 400 kV versions expected soon, enhancing operational readiness.

Robust Order Book and Bidding Pipeline

POWERGRID's total works in hand amount to ₹1.75 lakh crore, with TBCB projects accounting for ₹1.46 lakh crore and RTM for ₹25,000 crore. The bidding pipeline is robust, totaling ₹1.19 lakh crore, including ₹73,875 crore under bidding and ₹45,000 crore to be floated. The long-term outlook for the sector is strong, with over ₹15 lakh crore in potential projects driven by renewable energy integration, data centers, and green hydrogen initiatives, including a ₹7.9 lakh crore government program for 900+ GW non-fossil capacity by 2035-36.

Capital Expenditure and Funding Strategy

The company's Q1 FY27 capitalization was ₹5,277 crore, and it maintains a full-year capitalization guidance of ₹30,000 crore and a capex guidance of ₹37,000 crore. The ₹13,000 crore equity invested in TBCB projects to date has been entirely funded through internal accruals, demonstrating strong financial health. POWERGRID also secured a green loan agreement of JPY 80 billion from JBIC, further supporting its growth trajectory.

Regulatory Environment and Project Execution Improvements

Management clarified that the regulatory regime inherently causes some revenue reduction due to depreciation and interest differences between provisional and final CERC orders. They also noted that transmission line implementation timelines have been revised to a more realistic 26-30 months (from 18 months), which should improve project execution. However, new land compensation costs, particularly under new guidelines, are not yet fully factored into future capex estimates, posing a potential cost increase.

Strategic Initiatives and ESG Progress

POWERGRID is actively pursuing new opportunities, including Battery Energy Storage Systems (BESS) under the regulatory framework, having filed petitions for such projects. The company is also making significant progress on its ESG targets, having achieved over 50% net water positive status, over 90% zero waste to landfill (targeting 2030), and a 20% reduction towards its 2047 net-zero goal, reflecting its commitment to sustainability.

Consultancy and Telecom Business Performance

The consultancy segment generated ₹252 crore in Q1 FY27, while the telecom division contributed ₹391 crore. The company highlighted its role in providing connectivity to Andaman and Nicobar through its subsidiary PowerTel and establishing the first international long-distance communication to Nepal, expanding its business footprint and adding to its diversified revenue streams.

Summary of a publicly available earnings call transcript. Not investment advice.