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Power Grid Corporation of India Limited — Q3 FY26 earnings call

Call held 23 Mar 2026

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

Management summary

POWERGRID concluded FY26 with strong Capex and Capitalization achievements, exceeding targets and demonstrating robust operational performance. The company outlined an ambitious future growth trajectory, driven by India's energy transition and expanding electricity demand, backed by a significant project pipeline. While past execution challenges have been addressed, competition in niche segments and delays in some large project tendering remain areas of focus.

Highlights

  • Achieved FY26 Capex of ₹35,000 crores, meeting revised guidance, and set higher targets for FY27 (₹37,000 crores) and FY28 (₹45,000 crores).

  • Achieved FY26 Capitalization of ₹22,749 crores, exceeding initial guidance of ₹22,000 crores, with a target of over ₹25,000 crores by month-end.

  • Market capitalization grew 2.5x from FY21 to FY26, reaching ₹2,77,000 crores as of February 2026, reflecting strong investor confidence.

  • Maintained high transmission system availability at 99.84% and low trippings per line at 0.25, demonstrating operational excellence.

  • Secured a robust pipeline of works in hand totaling ₹1,48,000 crores, providing strong growth visibility.

Concerns

  • Initial execution delays were experienced due to Right-of-Way (RoW) issues, skilled manpower shortages, and equipment supply, though management states these are now addressed.

  • Slowdown in project tendering for ISTS projects beyond 73 GW in Rajasthan due to challenges in evacuation studies and finalization of landing points.

  • Intense competition from smaller players in intrastate and battery energy storage projects, making it challenging for POWERGRID to win bids in these segments.

Key financials

3 periods

Headline

  • Gross Fixed Assets
    ₹3.00L Cr
  • Market Capitalization
    ₹2.77L Cr
  • Transmission System Availability
    99.8%
  • Trippings per line
    0.25 trippings

FY21-FY26

  • Dividends Paid
    ₹50,000 Cr

FY26

  • Capex
    ₹35,000 Cr
    YoY +34.6%
  • Capitalization
    ₹22,749 Cr

What they filed

Q1 FY27: revenue up 2.7%, net profit down 0.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue11,278 11,233 12,275 11,196 11,476 +2%12,395 +10%11,666 −5%11,497 +3%
EBITDA9,597 9,533 10,194 9,102 9,055 −6%10,607 +11%5,303 −48%9,430 +4%
Net profit3,793 3,862 4,143 3,631 3,566 −6%4,185 +8%4,546 +10%3,598 −1%
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.

Order book

high confidence

Total value

₹1,48,000 Cr

as of 2026-03-31 quantified

Pipeline

other

Long-term transmission opportunity including international and Brahmaputra basin projects

The company has a robust pipeline of transmission projects, with works in hand of ₹1,48,000 crores and a long-term opportunity of ₹15 lakh crore.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹35,000 Cr Raised — achieved higher than revised guideline

    Previously planned ₹32,000 Cr

    Today, we are a Company of Gross Fixed Assets more than Rs. 3,00,000 crores. Okay, financial year, 25-26, I am happy to announce that last investors meet, we have revised our Capex guideline to Rs. 32,000 crore. So today, we are now announcing that our Capex guideline will be Rs. 35,000 plus crore, and already we have achieved Rs. 35,000 crore.
  • Returns FYTD ₹50,000 Cr
  • M&A 19 SPVs Merger · Closed

    Improved governance and administrative control, reduced number of SPVs

    Primarily for administrative control rather than financial savings.

    Recently, with the support of Government of India, we have now approval for merging 19 SPVs into 2 SPVS, MCA approval has been received.
  • M&A 28 Wholly owned subsidiaries Merger · Pending regulatory

    Improved governance and administrative control, reduced number of SPVs

    Primarily for administrative control rather than financial savings.

    Now we are also considering merger of 28 Wholly owned subsidiaries into 2 wholly owned subsidiaries. Approval by the Board is already accorded, and we are now going to Ministry of Power.
  • Liquidity Liquidity disclosed Company has sufficient funds to compete in projects, implying adequate liquidity for planned investments.
    I think we have sufficient funds to compete in the projects which are going to be available for bidding in the next 2 years, 3 years, 4 years, so we don't see any challenge in this regard.

Guidance & targets

Capex

  • Capex Capex · FY27 · High confidence ₹37,000 crores
    So next year, we are already committed with Government of India to be Rs. 37,000 crore. Definitely, it is going to be more than Rs. 37,000 crore.

    — Dr. R.K. Tyagi - Chairman & MD

  • Capex Capex · FY28 · High confidence ₹45,000 crores
    So, for next financial year, it will be Rs. 45,000 crore Capex.

    — Dr. R.K. Tyagi - Chairman & MD

Capitalization

  • Capitalization Capitalization · FY26 · High confidence >₹25,000 crores

    Previously ₹22,000 crores → >₹25,000 crores

    Our capitalization will be Rs. 25,000 crore plus.

    — Dr. R.K. Tyagi - Chairman & MD

  • Capitalization Capitalization · FY27 · High confidence ₹30,000 crores
    This year, Rs. 25,000 crore next year, Rs. 30,000 crore, then in FY28 it is going to be Rs. 35,000 crore.

    — Dr. R.K. Tyagi - Chairman & MD

  • Capitalization Capitalization · FY28 · High confidence ₹35,000 crores

    — Dr. R.K. Tyagi - Chairman & MD

Transmission Opportunity

  • Transmission Investment Transmission Opportunity · by 2035-36 · High confidence ₹7.9 lakh crore
    it talks of about Rs. 7.9 lakh crore opportunity, which will be because of our peak demand of 459 GW by 2035-36.

    — Dr. R.K. Tyagi - Chairman & MD

  • Total Transmission Investment (incl. international) Transmission Opportunity · long-term · High confidence ₹15 lakh crore
    So total, the visibility for transmission project is will be somewhere Rs. 15 lakh crore, investment in transmission system, considering national international inter-state, inter-state, all projects will be somewhere about Rs. 15 lakh crore.

    — Dr. R.K. Tyagi - Chairman & MD

Project Execution

  • Annual Project Execution Value Project Execution · per year up to 2035 · High confidence ₹60,000 crore
    So, even if we consider 60% of this, so we are going to have almost Rs. 6 lakh crore projects to be executed by 2035. Which makes almost Rs. 60,000 crore per year.

    — Dr. R.K. Tyagi - Chairman & MD

Manpower Training

  • Technicians/Fitters Trained Manpower Training · annually · High confidence 1400 to 1500
    So, 350 technicians and fitters will be trained in 3 months, and almost 1400 to 1500 technicians or fitters will be trained. Which will make almost 100-plus gangs, erection gangs, each year.

    — Dr. R.K. Tyagi - Chairman & MD

Project Execution Timeline

  • New Project Commissioning Timeline Project Execution Timeline · new projects · High confidence 30 to 36 months

    Previously 18 to 24 months → 30 to 36 months

    We have, based on our experience, we have given feedback to Government of India that, 18 months or 24 months is not feasible. This timeline is not right. So, at least we should get 30 months or 36 months for this transmission project to be executed.

    — Dr. R.K. Tyagi - Chairman & MD

What to watch in Q4 FY26

FY27 Capex Achievement

next quarter
Current Committed ₹37,000 crores for FY27
Target Confirmation of ₹37,000 crores or upward revision based on new project wins

Why it matters

Tracking actual capital expenditure against ambitious targets is crucial for assessing growth and execution capabilities.

So next year, we are already committed with Government of India to be Rs. 37,000 crore. Definitely, it is going to be more than Rs. 37,000 crore.

Risks & concerns

  • Inflationary impact on TBCB project costs and IRRs

    medium

    Analyst raised concerns about potential cascading impact of inflation on TBCB projects, but management stated they have mechanisms to claim extra tariff and maintain returns.

    Analyst acknowledged

  • Grid complexity and balancing due to high RE penetration

    medium

    Management identified increasing grid complexity from RE penetration as a challenge and opportunity, requiring advanced solutions like HVDC and 1200 kV networks.

    Management acknowledged

  • Slowdown in project tendering for ISTS projects beyond 73 GW in Rajasthan

    medium

    Management attributed delays to challenges in evacuation studies and finalization of landing points, but expects new projects to be available for bidding soon.

    Analyst acknowledged

  • Intense competition in intrastate and battery energy storage projects

    medium

    POWERGRID finds it difficult to win bids in these segments due to competition from smaller players and is revising its methodology to be more competitive.

    Management acknowledged

  • Execution delays due to RoW, skilled manpower, and equipment supply

    low

    Management acknowledged past issues but detailed comprehensive measures taken to address RoW, manpower training, and equipment supply, expressing confidence in future execution.

    Analyst acknowledged

Q&A highlights

7 direct
Impact of inflation on TBCB projects and IRRs Direct
There has been some price escalation considering this compensation towards land diminution value. And in case such force majure conditions are there, we are claiming extra tariff from CERC, which is normally given approved by CERC, and we are able to maintain our revenue as per the initial guidance. So, we are not expecting any abnormal price escalation, which is causing our project to be less, returns will be maintained.

Addresses concerns about cost overruns and profitability in competitive bidding projects due to inflationary pressures, highlighting mechanisms to protect returns.

Asked by Raj Gandhi

Upward revision of Capex guidance for FY27/FY28 Partial
But suppose tomorrow, I win more projects. So, definitely in FY26-27, I will invest more money. Similarly, in FY27-28 also, I will invest more money. So, our capex may go high. But, because considering projects in hand, we have given visibility based on the projects in hand, and whatever projects, we are sure that these will be with POWERGRID. Considering that only we have given this guidance.

Clarifies that current Capex guidance is conservative, based on existing projects, and will be revised upwards if more projects are secured, indicating potential for higher future investments.

Asked by Siddharth Gupta

Execution abilities and challenges (RoW, manpower, equipment) Direct
First, RoW issue has been addressed by Government of India by announcing the revised guidelines for compensation for land diminution value... Second issue was skilled manpower. Now, we have already 5 skilled developmental centers... Similarly, for transformers and reactors supply and other equipment supply, all manufacturers are now going for augmentation of their capacity.

Provides detailed insights into how POWERGRID has systematically addressed key bottlenecks that previously caused project delays, boosting confidence in future execution capabilities.

Asked by Siddharth Gupta

Savings from new corporate structure (SPV mergers) and rationale for two SPVs Direct
Actually, for a SPV, as per the DIPAM guidelines our limit for each project was initially Rs. 5,000 crores... But now, this guideline, or this limit, has been increased to Rs. 7,500 crores. So, accordingly, we can merge more SPVs... this is for administrative purposes and governance, we wanted to do these types of mergers more than any cost savings.

Explains the strategic rationale behind SPV mergers (governance, administrative control) and the regulatory constraints (DIPAM guidelines) influencing the number of merged entities, clarifying that financial savings are not the primary driver.

Asked by Mohit Kumar

Tendering timelines for Brahmaputra basin and OSOWOG related transmission investments Direct
Okay, it's Brahmaputra, as such, like, already, a transmission system has been already planned and one project is already available for, bidding. Like, Niglok... Similarly, for One Sun, One World, One Grid, yesterday also our Honorable Minister has mentioned that these, projects with Oman, UAE, and Saudi Arabia. So, these are being discussed at Government level. So, we are expecting that maybe another 2 to 3 years, these projects will also start materializing.

Gives a timeline for the materialization of large-scale, strategic projects, indicating when investors can expect bidding activity for these significant opportunities.

Asked by Sumit Kishore

Status and CAPEX of the Leh Pang project Direct
HVDC, we have Khavda to Nagpur already, the one HVDC is there, which is being executed by POWERGRID, which is costing almost Rs. 5,000 crores. So, this is part of this Rs. 1.48 lakh crores, And moreover, this Pang- Kaithal is not part of this. Pang- Kaithal we have excluded from Rs. 1,48,000 crores.

Clarifies the exclusion of the Leh Pang project from the current 'works in hand' due to its fluid status (potential AC network change), providing transparency on the composition of the order book.

Asked by Sumit Kishore

Impact of GIB (Great Indian Bustard) court ruling on Power Grid projects Direct
So, we don't have any impact of GIB in Rajasthan or Ramgarh, that area. So, our projects were... whatever projects, transmission projects were there, it is outside that area. And whatever guidance has been given by Honorable Supreme Court. And, in future. All projects, CTUIL is taking care that all projects are outside GIB area. So, we don't see any impact of GIB on power grid transmission projects.

Reassures investors that the GIB court ruling, a significant environmental and regulatory concern, does not impact POWERGRID's existing or future transmission projects.

Asked by Satyadeep Jain

Grid utilization and power deficit in an El Nino situation Direct
Our Honorable Power Minister has reviewed the situation. Yesterday, also, there was a review meeting by Honorable Prime Minister regarding this energy challenge and energy crisis... As per the discussion, as per the, this Grid India, or CEA We are going to have almost 270 GW requirement in May or June, and for which we have sufficient resources to meet that requirement.

Addresses concerns about potential power deficits and grid stress during high-demand periods, confirming government-level preparedness and sufficient resources to meet projected peak demand.

Asked by Parth Nanavati

2 min read 7 chapters

Detailed narrative

FY26 Performance and Operational Excellence

POWERGRID concluded FY26 by achieving its revised Capex target of ₹35,000 crores and exceeding its initial capitalization guidance, reaching ₹22,749 crores with a target of over ₹25,000 crores by month-end. The company's Gross Fixed Assets now stand at over ₹3,00,000 crores. Operational performance remained strong with a transmission system availability of 99.84% and a low tripping rate of 0.25 trippings per line, demonstrating high reliability.

Future Capex and Capitalization Outlook

The company has laid out an ambitious capital expenditure plan, committing ₹37,000 crores for FY27 and projecting ₹45,000 crores for FY28. Corresponding capitalization targets are ₹30,000 crores for FY27 and ₹35,000 crores for FY28, aiming for approximately ₹65,000 crores in total capitalization over the next two years. This aggressive guidance is based on current projects in hand, with potential for upward revision if more projects are secured.

Addressing Execution Challenges

Management acknowledged past execution challenges related to Right-of-Way (RoW), skilled manpower, and equipment supply. They highlighted successful mitigation strategies, including revised government guidelines for RoW compensation, dedicated RoW cells, and an annual training program for 1400-1500 technicians/fitters. Equipment supply issues are also being addressed by manufacturers augmenting their capacities, leading to confidence in meeting new project timelines of 30-36 months.

Long-term Transmission Opportunity and Growth Visibility

POWERGRID foresees a substantial long-term transmission opportunity, driven by India's energy transition and increasing electricity demand. The CEA guidelines project a ₹7.9 lakh crore opportunity by 2035-36 within India. Including international HVDC interconnections and Brahmaputra Basin projects, the total transmission investment visibility could reach ₹15 lakh crore. The company expects to execute projects worth approximately ₹60,000 crores annually up to 2035.

Strategic SPV Mergers for Governance

To enhance administrative control and governance, POWERGRID has received MCA approval to merge 19 SPVs into 2 and is actively pursuing the merger of 28 wholly-owned subsidiaries into another 2, with Board approval already secured. This initiative aims to reduce the number of entities and streamline operations, with ongoing discussions with DIPAM to potentially increase the project limit per SPV to ₹10,000-15,000 crores, facilitating further consolidation.

Project Pipeline and Bidding Landscape

The company's current 'works in hand' stand at ₹1,48,000 crores, which includes ₹49,000 crores in Capital Work in Progress (CWIP). While the Leh Pang project has been temporarily excluded due to its fluid status, POWERGRID anticipates significant bidding opportunities for Brahmaputra basin projects and One Sun, One World, One Grid initiatives (with Oman, UAE, Saudi Arabia) to emerge within the next 2-3 years, contributing to future growth.

Competition in Niche Segments

POWERGRID noted that it faces intense competition from smaller players in intrastate and battery energy storage projects, making it challenging to secure bids in these evolving segments. The company is actively reviewing its strategies and exploring potential tie-ups with battery suppliers to enhance its competitiveness and market share in these areas.

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