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    Power Grid Corporation of India Limited

    POWERGRID
    Power·18 May 2026
    Management Summary

    Power Grid Corporation of India Limited reported a strong FY26, with total income growing to ₹47,684 crores and consolidated PAT increasing by 3% to ₹15,928 crores. The company exceeded its CapEx and capitalization targets, demonstrating robust project execution and asset base expansion. Strategic focus on green energy evacuation, technology adoption, and international expansion continues, though challenges like ROW and equipment supply persist.

    Highlights

    7

    • Total income for FY26 stood at ₹47,684 crores, up from ₹47,459 crores in FY25, demonstrating continued revenue generation.

    • Consolidated Profit After Tax (PAT) for FY26 increased by 3% to ₹15,928 crores, while standalone PAT rose by 4% to ₹15,921 crores.

    • The company's Gross Fixed Assets surpassed ₹3 lakh crore, reaching ₹3,20,334 crores, and Net Worth exceeded ₹1 lakh crore at ₹1,00,494 crores.

    • CapEx for FY26 reached close to ₹40,000 crores, significantly exceeding the initial guidance of ₹28,000 crores and subsequent revision to ₹35,000 crores.

    • POWERGRID successfully won 9 out of 28 TBCB projects floated in FY26, securing approximately 44% of the total tariff, and added 4,765 ckm of transmission lines and 72,055 MVA of transformation capacity.

    • Telecom revenue grew by 5.94% to ₹1,195 crores, and Consultancy revenue saw a substantial increase of 119.65% to ₹1,755 crores in FY26.

    • ESG targets for 50% RE electricity consumption were achieved ahead of the 2025 target, and 55% progress was made towards net positive water by 2030.

    Concerns

    3

    • EBITDA pattern shows a natural dip after assets complete 12 years due to regulated tariff structure, impacting Q4 FY26.

    • Equipment supply issues, particularly for transformers and reactors, persist with demand (400+ GVA annually) exceeding manufacturing capacity (300 GVA), leading to extended lead times.

    • Right-of-Way (ROW) challenges remain a 'perennial issue' for transmission projects, despite government initiatives for market rate determination.

    Key financials

    Single quarter

    07 metrics
    1. 01Total Income₹47,684 Cr+0.5%YoY
    2. 02PAT Consolidated₹15,928 Cr+3%YoY
    3. 03Gross Fixed Assets₹3.20L Cr
    4. 04Net Worth₹1.00L Cr
    5. 05Return on Net Worth15.8%

    Order Book

    high confidence

    Total Value

    ₹ 1,70,000 crores

    as of 2026-03-31

    quantified

    Composition

    Mix2 contract types
    • TBCB81.0%
    • RTM16.0%

    Share of order book by contract type

    Pipeline

    qualified rfp

    Bidding pipeline for transmission projects

    "The company has ₹1.7 lakh crore of works in hand, with a significant portion from TBCB projects, and a robust bidding pipeline of ₹1.1 lakh crore, indicating strong future growth visibility."

    Source:
    Prepared remarks

    Capital allocation

    4
    high confidence
    CategoryHeadline
    Capex

    ₹37,000 crores

    raised — subsequent increase in project requirements and execution pace

    Debt

    Debt disclosed

    M&A

    Mwanga Transmission Company (Kenya)

    joint venture · signed · Consideration ₹NaN (undisclosed)

    Liquidity

    Liquidity disclosed

    The company maintains healthy cash flows, contributing to its position as a stable value creator.

    Guidance & targets

    8
    CategoryTargetPriority
    Capex
    CapEx
    ₹37,000 crores
    		High
    Capex
    CapEx
    ₹40,000-45,000 crores
    		Medium
    Capitalization
    Capitalization
    ₹30,000 crores
    		High
    Capitalization
    Capitalization
    ₹35,000 crores
    		High
    ESG
    Electricity Consumption from RE
    50%
    		High
    ESG
    Net Positive Water
    100%
    		Medium
    ESG
    Zero Waste to Landfill
    100%
    		Medium
    ESG
    Net Zero Emission
    Net Zero
    		High

    What to watch in Q1 FY27

    5

    CapEx for FY27

    next quarter
    Current₹40,000 crores (FY26 actual)
    Target₹37,000 crores (initial guidance for FY27) or higher

    Why it matters

    To assess if the company maintains its strong CapEx momentum and potentially revises its FY27 guidance upwards, following the significant outperformance in FY26.

    And the guidance of CapEx for FY27, the initial guidance I should say is 37,000 crore.

    Risks & concerns

    3
    RiskSeverity

    Right-of-Way (ROW) challenges for transmission projects

    ROW is a perennial issue, though government initiatives for market rate determination and specific timelines are being implemented to mitigate it. — Both acknowledged

    medium

    Equipment supply issues and extended lead times

    Demand for transformers and reactors (400+ GVA/year) exceeds manufacturing capacity (300 GVA), leading to procurement challenges, though OEM capacity expansion and extended project timelines are being used to address this. — Both acknowledged

    medium

    EBITDA decline due to asset aging and regulated tariff structure

    The regulated tariff structure causes a natural dip in EBITDA after assets complete 12 years, which is a known transition. — Analyst acknowledged

    low

    Q&A highlights

    8

    “You are partly right in your question itself. You have been asking whether the EBITDA pattern is because of assets completing 12 years. Yes, to the extent of that the structure of the regulated tariff has a trajectory wherein after the 12 years which you are aware, there is a dip in those projects which it is there. So, this is a natural transition which happens over a period of time. And this is one of the major transitions which has happened for a major project. As far as the service accounting part of it, yes, these projects are under the BOOT method, the new projects which are being floated under the BOOT method, and the financial lease model is being followed for these projects.”

    Analyst inquired about the reason for EBITDA decline, and management confirmed it's partly due to the natural dip in regulated tariffs after 12 years of asset life, and clarified the BOOT/financial lease model for new projects.

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Financial Performance and Asset Base Expansion in FY26

    Power Grid Corporation of India Limited reported a total income of ₹47,684 crores for FY26, a slight increase from ₹47,459 crores in FY25. Consolidated Profit After Tax (PAT) grew by 3% to ₹15,928 crores, while standalone PAT saw a 4% increase to ₹15,921 crores. The company's asset base expanded significantly, with Gross Fixed Assets breaching ₹3 lakh crore to reach ₹3,20,334 crores, and Net Worth surpassing ₹1 lakh crore at ₹1,00,494 crores, reflecting a Return on Net Worth of 15.85%.

    02

    Exceeding CapEx and Capitalization Targets

    In FY26, POWERGRID delivered CapEx close to ₹40,000 crores, substantially exceeding its initial guidance of ₹28,000 crores and subsequent revision to ₹35,000 crores. Capitalization for the year also surpassed the commitment of ₹25,000 crores, reaching ₹28,206 crores. For FY27, the initial CapEx guidance is set at ₹37,000 crores, with an expectation to reach ₹40,000-45,000 crores by FY28. Initial capitalization guidance for FY27 is ₹30,000 crores, rising to ₹35,000 crores for FY28.

    03

    Robust Project Execution and Order Book

    The company added 4,765 ckm of transmission lines and a significant 72,055 MVA of transformation capacity in FY26, including 9 new substations. POWERGRID secured 9 out of 28 TBCB projects floated during the year, accounting for approximately 44% of the total tariff. The current works in hand stand at ₹1.7 lakh crore, with TBCB projects contributing ₹1.37 lakh crore, and a substantial bidding pipeline of ₹1.1 lakh crore, including ₹1.05 lakh crore under bidding and ₹5,270 crore for intrastate projects.

    04

    Technological Advancements and Operational Excellence

    POWERGRID maintained high system availability of over 99.75% and a low annual tripping rate of 0.26. Key technological adoptions include AI-based defect detection, drone patrolling, and condition monitoring. The company commissioned Asia's first transformer with synthetic ester oil and India's first 400 kV insulated cross arm, reducing Right-of-Way challenges. The deployment of 220 kV mobile GIS and upcoming 132 kV and 400 kV mobile GIS units enhance grid resilience and emergency restoration capabilities.

    05

    Strategic Growth in BESS and International Expansion

    The company is actively pursuing Battery Energy Storage Systems (BESS) opportunities, participating in government VGF tenders and leveraging CERC's regulatory amendments to develop integrated storage systems under the regulated model. Internationally, POWERGRID initiated its first transmission PPP model with a $300 million investment in Kenya through Mwanga Transmission Company, in partnership with Africa50, with plans for further expansion in Africa.

    06

    ESG Commitments and Achievements

    POWERGRID achieved its 2025 target of 50% electricity consumption from renewable energy sources ahead of schedule. Significant progress has been made towards becoming net positive in water, with 55% achieved against a 2030 target, and 90% progress towards zero waste to landfill. The company expressed confidence in achieving its net-zero emission status by 2047 well before the target date.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.