Power Grid Corporation of India Ltd
Power Grid Corporation of India Ltd
Power F&OKey Fundamentals
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BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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45 extracted metrics + investor summaries across FY15–FY26.
Tapetide Score
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Technical Indicators
Key Insights
Strengths
1- Company has been maintaining a healthy dividend payout of 57.9%
Weaknesses
3- The company has delivered a poor sales growth of 3.35% over past five years.
- Tax rate seems low
- Company might be capitalizing the interest cost
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 4d agoPower Grid Corporation of India is a ₹2.48 lakh crore market-cap regulated utility trading at a PE of 15.8x with a 3.4% dividend yield. Revenue growth has been subdued at 3% CAGR over five years, but the company secured ₹92,000 crore of new projects in FY25 and achieved record capex of ~₹40,000 crore in FY26, signalling a potential inflection in its earnings trajectory.
- Massive order pipeline: Won projects worth ₹92,000 crore in FY25 alone, with works-in-hand valued at ₹1,43,295 crore as of Nov 2024, providing multi-year revenue visibility
- Record capex execution: Achieved highest-ever capital expenditure of ₹39,967 crore (accrual basis) in FY26, with FY25 capex at ₹26,255 crore — demonstrating accelerating execution
- Near-perfect operational reliability: Transmission system availability of 99.84% with trippings per line at just 0.27, underpinning regulated return on equity
- Dominant market position: Controls ~84% of India's inter-state transmission capacity and transmits ~45% of total power generated, creating a near-monopoly in its segment
- Healthy dividend payout of 57.9% translating to a 3.38% yield at current price — attractive for income-oriented investors relative to other large-caps
- Consistent ROE of 15-18% over the past decade (17% 10-year average, 15% last year) on a regulated asset base, offering earnings predictability
- Long-term stock CAGR of 14% over 5 years and 10% over 10 years despite the utility nature of the business
- Project pipeline expected to exceed ₹3 trillion by 2032, driven by India's renewable energy integration and interstate transmission needs
- Very weak revenue growth: Compounded sales growth of just 1% over 3 years and 3% over 5 years, indicating limited topline momentum despite capex spend
- Profit growth stagnation: 3-year compounded profit growth is negative at -2%, and TTM profit growth is only 3%
- Rising debt levels: Total debt stood at ~₹1,48,051 crore (FY25), up from ₹1,31,013 crore and ₹1,23,490 crore in prior years — debt is increasing to fund capex
- Potential interest capitalisation: Company may be capitalising interest costs, which flatters reported profitability and understates true financing burden
- Negative 1-year stock return of -8%, suggesting the market is pricing in near-term growth concerns despite the capex ramp-up
- Low tax rate raises questions about sustainability of reported earnings if effective tax rate normalises higher
- Lag between capex and revenue: Capitalisation of ₹22,749 crore in FY26 was 91% of target, meaning revenue recognition from new assets faces execution delays including right-of-way issues
- Regulated return model caps upside: Transmission tariffs are set by CERC on a cost-plus basis, limiting ability to grow margins beyond the allowed ROE of ~15.5%
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 8h ago- Q1FY27 profit dips 7% YoY Aug 5
Consolidated net profit declined 6.6% YoY to ₹3,598.42 crore in Q1FY27, driven by lower transmission income.
- ₹857 Cr reconductoring project approved Aug 5
Board approved ₹856.94 crore project to reconduct 400kV lines in Tamil Nadu, targeting commissioning by February 2028.
- 20 GW Rajasthan REZ commissioned Aug 4
Commissioned the 20 GW REZ transmission system in Rajasthan on July 4, 2026, with DOCO received on July 9.
- Borrowing limit hike to ₹2.2L Cr Jul 29
AGM on Aug 20 proposes raising overall borrowing limits from ₹1,80,000 crore to ₹2,20,000 crore and domestic bond issuance to ₹35,000 crore.
- Two TBCB acquisitions for ₹33 Cr Jul 29
Acquired Krishnagiri REZ Transmission (₹19.82 Cr) and Bhadla Ramgarh Power Transmission (₹12.86 Cr) under Tariff Based Competitive Bidding.
- Strong ESG metrics in BRSR Jul 29
FY26 BRSR highlights 35.74% renewable energy share, ₹391.16 crore CSR spend, and 17.95% reduction in total emissions.
- ₹1.25 final dividend declared Jul 29
Final dividend of ₹1.25 per share for FY26 with record date August 13 and payment by September 16, 2026.
- New Director Finance appointed Aug 18
Amol Babulal Taori assumed role of Director (Finance) effective August 18, 2026, for a five-year term, bringing treasury experience from HPCL.
- Equipment supply challenges easing Aug 7
Management reported improved equipment availability through bulk procurement, enhanced OEM capacity, and better pricing and delivery schedules.
- UPSI disclosure code updated Aug 5
Board approved amended Code of Practices for fair disclosure of UPSI on Aug 5, 2026, ensuring SEBI compliance.
- ₹145 Cr block trade on NSE Jul 27
Block trade of ~50.13 lakh shares at ₹289.40 per share worth ₹145.08 crore, indicating institutional activity.
- CMD additional charge extended Jul 23
Burra Vamsi Rama Mohan's Director (Projects) charge extended for 3 months from July 1, 2026.
- ED Rajesh Gupta retires Aug 1
Rajesh Gupta ceased as Executive Director on July 31, 2026, upon attaining superannuation age.
TL;DR: Power Grid is executing well on its core transmission expansion mandate with a 20 GW Rajasthan REZ commissioning, new TBCB wins, and a proposed borrowing limit hike to ₹2.2 lakh crore signaling a strong capex pipeline. The Q1FY27 profit dip of 6.6% on lower transmission income is a near-term concern, though easing supply chain pressures and steady project additions should support earnings recovery. The trend is incrementally positive with visibility on order flow and capacity expansion outweighing the one-quarter earnings softness.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 11,048 | 11,267 | 11,550 | 11,978 | 11,006 | 11,278 | 11,233 | 12,275 | 11,196 | 11,476 | 12,395 | 11,666 | 11,497 |
| Expenses | 1,716 | 1,557 | 1,375 | 2,055 | 1,466 | 1,681 | 1,700 | 2,081 | 2,094 | 2,421 | 1,788 | 6,363 | 2,066 |
| Operating Profit | 9,332 | 9,710 | 10,175 | 9,923 | 9,540 | 9,597 | 9,533 | 10,194 | 9,102 | 9,055 | 10,607 | 5,303 | 9,430 |
| OPM % | 84% | 86% | 88% | 83% | 87% | 85% | 85% | 83% | 81% | 79% | 86% | 45% | 82% |
| Other Income | 209 | 263 | 380 | 389 | 302 | 814 | 552 | 366 | 461 | 712 | 463 | 322 | 202 |
| Interest | 2,057 | 2,341 | 2,446 | 1,928 | 2,039 | 2,441 | 1,917 | 2,303 | 1,934 | 2,148 | 2,190 | 2,175 | 2,023 |
| Depreciation | 3,266 | 3,277 | 3,293 | 3,259 | 3,200 | 3,292 | 3,216 | 3,196 | 3,130 | 3,223 | 3,381 | 3,295 | 3,128 |
| PBT | 4,218 | 4,355 | 4,816 | 5,125 | 4,603 | 4,678 | 4,952 | 5,062 | 4,499 | 4,395 | 5,497 | 155 | 4,481 |
| Tax % | 15% | 13% | 16% | 19% | 19% | 19% | 22% | 18% | 19% | 19% | 24% | -2829% | 20% |
| Net Profit | 3,597 | 3,781 | 4,028 | 4,166 | 3,724 | 3,793 | 3,862 | 4,143 | 3,631 | 3,566 | 4,185 | 4,546 | 3,598 |
| EPS in Rs | 3.87 | 4.07 | 4.33 | 4.48 | 4 | 4.08 | 4.15 | 4.45 | 3.9 | 3.83 | 4.5 | 4.89 | 3.87 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 17,540 | 20,652 | 25,697 | 29,954 | 35,059 | 37,744 | 39,640 | 41,622 | 45,581 | 45,843 | 45,792 | 46,733 | 47,033 |
| Expenses | 2,613 | 2,468 | 3,247 | 3,993 | 8,140 | 4,858 | 4,734 | 5,796 | 7,001 | 6,599 | 7,013 | 13,901 | 12,639 |
| Operating Profit | 14,927 | 18,184 | 22,450 | 25,961 | 26,920 | 32,886 | 34,906 | 35,826 | 38,580 | 39,244 | 38,779 | 32,831 | 34,395 |
| OPM % | 85% | 88% | 87% | 87% | 77% | 87% | 88% | 86% | 85% | 86% | 85% | 70% | 73% |
| Other Income | 731 | 656 | 933 | 4,065 | 1,505 | 2,820 | 769 | 4,692 | 2,089 | 1,138 | 2,120 | 3,193 | 1,698 |
| Interest | 4,081 | 5,086 | 6,204 | 7,324 | 8,737 | 9,509 | 8,135 | 8,036 | 9,634 | 8,773 | 8,700 | 8,448 | 8,536 |
| Depreciation | 5,173 | 6,182 | 7,722 | 9,231 | 10,541 | 11,607 | 12,039 | 12,872 | 13,333 | 13,095 | 12,904 | 13,030 | 13,028 |
| PBT | 6,404 | 7,572 | 9,457 | 13,471 | 9,147 | 14,590 | 15,501 | 19,610 | 17,702 | 18,514 | 19,294 | 14,547 | 14,529 |
| Tax % | 21% | 21% | 21% | 39% | -10% | 24% | 22% | 14% | 13% | 16% | 20% | -10% | — |
| Net Profit | 5,046 | 5,959 | 7,451 | 8,204 | 10,034 | 11,059 | 12,036 | 16,824 | 15,417 | 15,573 | 15,521 | 15,928 | 15,896 |
| EPS in Rs | 5.43 | 6.41 | 8.01 | 8.82 | 10.79 | 11.89 | 12.94 | 18.09 | 16.58 | 16.74 | 16.69 | 17.13 | 17.09 |
| Div. Payout % | 21% | 20% | 31% | 33% | 43% | 47% | 52% | 61% | 67% | 67% | 54% | 53% | — |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 5,232 | 5,232 | 5,232 | 5,232 | 5,232 | 5,232 | 5,232 | 6,975 | 6,975 | 9,301 | 9,301 | 9,301 |
| Reserves | 33,207 | 38,738 | 44,634 | 49,194 | 53,857 | 59,464 | 64,704 | 69,272 | 76,039 | 77,845 | 83,362 | 91,193 |
| Borrowings | 96,243 | 1,08,545 | 1,18,988 | 1,31,503 | 1,46,376 | 1,48,270 | 1,43,232 | 1,34,696 | 1,26,661 | 1,23,516 | 1,31,030 | 1,48,071 |
| Other Liabilities | 26,102 | 26,797 | 26,809 | 39,425 | 41,916 | 43,706 | 42,539 | 40,008 | 40,627 | 40,168 | 42,326 | 46,109 |
| Total Liabilities | 1,60,784 | 1,79,312 | 1,95,662 | 2,25,354 | 2,47,380 | 2,56,671 | 2,55,708 | 2,50,950 | 2,50,303 | 2,50,829 | 2,66,019 | 2,94,674 |
| Fixed Assets | 91,191 | 1,15,094 | 1,37,678 | 1,56,198 | 1,72,740 | 1,81,112 | 1,83,726 | 1,91,773 | 1,85,437 | 1,77,761 | 1,72,320 | 1,76,531 |
| CWIP | 53,681 | 45,611 | 38,264 | 37,669 | 37,631 | 35,177 | 24,838 | 12,854 | 13,772 | 18,197 | 33,585 | 43,747 |
| Investments | 220 | 919 | 1,165 | 1,224 | 1,296 | 1,431 | 1,486 | 3,788 | 3,489 | 4,163 | 3,117 | 2,995 |
| Other Assets | 15,693 | 17,688 | 18,555 | 30,264 | 35,713 | 38,951 | 45,659 | 42,536 | 47,604 | 50,708 | 56,998 | 71,401 |
| Total Assets | 1,60,784 | 1,79,312 | 1,95,662 | 2,25,354 | 2,47,380 | 2,56,671 | 2,55,708 | 2,50,950 | 2,50,303 | 2,50,829 | 2,66,019 | 2,94,674 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 15,800 | 15,008 | 21,575 | 22,710 | 23,271 | 30,739 | 29,403 | 26,124 | 38,005 | 37,290 | 36,222 | 40,935 |
| Investing | -24,185 | -21,576 | -23,836 | -25,701 | -18,727 | -10,733 | -9,244 | 753 | -6,126 | -13,114 | -23,532 | -35,445 |
| Financing | 6,399 | 5,621 | 3,959 | 1,285 | -2,431 | -18,806 | -20,521 | -28,967 | -29,264 | -25,903 | -12,357 | -4,006 |
| Net Cash Flow | -1,986 | -948 | 1,698 | -1,707 | 2,113 | 1,199 | -362 | -2,091 | 2,615 | -1,728 | 333 | 1,484 |
| Free Cash Flow | -9,178 | -6,671 | -2,349 | -3,470 | 820 | 19,372 | 19,786 | 18,157 | 31,102 | 25,886 | 12,111 | 3,687 |
| CFO/OP | 114 | 90 | 104 | 96 | 95 | 101 | 90 | 83 | 106 | 104 | 102 | 134 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 46 | 48 | 44 | 44 | 49 | 49 | 79 | 81 | 104 | 92 | 63 | 91 |
| Cash Conversion Cycle | 46 | 48 | 44 | 44 | 49 | 49 | 79 | 81 | 104 | 92 | 63 | 91 |
| Working Capital Days | -356 | -306 | -250 | -220 | -201 | -274 | -187 | -241 | -168 | -134 | -166 | -229 |
| ROCE % | 8% | 9% | 10% | 10% | 9% | 11% | 12% | 11% | 13% | 13% | 13% | 9% |
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Company Information
Power Grid Corporation of India Limited is a Maharatna CPSU and India’s largest electric power transmission company. GoI holds a 51.34% stake in the company as on March 31, 2021. PGCIL was incorporated in 1989 to set up extra-high voltage alternating current and high-voltage direct current (HVDC) transmission lines. The company moves large blocks of power from the central generating agencies and areas that have surplus power to load centres within and across regions. It is under the administrative control of the Ministry of Power, GoI. PGCIL also executes several strategically important projects, assigned to the company by GoI on nomination basis. Power Grid Corporation of India is principally engaged in planning, implementation, operation and maintenance of Inter-State Transmission System (ISTS), Telecom and consultancy services.