Power Grid Corporation of India Ltd Q1 FY26 Earnings Analysis
Published 21 Aug 2026 | Power | Market Cap: ₹2.5L Cr
Price
₹265
Market Cap
₹2.5L Cr
P/E Ratio
15.6
How does Power Grid Corporation of India Ltd rank in Power?
Compare Power Grid Corporation of India Ltd against every Power company this quarter on revenue, margins and earnings-call signals.
Power Grid Corporation of India Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹11.7K Cr, net profit ₹4.5K Cr.
Full financials →Earnings Summary
Core growth driver is transmission business, with major focus on TBCB projects (~₹99,000 Crore in hand). POWERGRID has a strong project pipeline with about ₹1,48,000 Crore projects in hand and ₹67,000 Crore worth projects recently bid out or to be bid, supporting future growth.
📊 Revenue & Sales Performance
- →Core growth driver is transmission business, with major focus on TBCB projects (~₹99,000 Crore in hand).
- →Expansion in telecom and consultancy businesses, with telecom income increasing and new smart meter business contributing ₹153 Crore revenue for FY25-26.
- →Venturing into solar power with 85MW commissioned, Green Hydrogen projects underway (Neemrana substation), and Battery Energy Storage Systems (BESS) participation planned (e.g., 2000 MW/4000 MWh tender in Rajasthan).
- →Strong project pipeline: ₹1,48,000 Crore projects in hand, plus ₹67,000 Crore projects up for bidding, and ₹75,000 Crore newly approved projects queued.
- →Capex plans to grow from ₹28,000 Crore (FY26) to ₹35,000 Crore (FY27) and ₹45,000 Crore (FY28).
- →Anticipate ₹22,000-₹25,000 Crore capitalization annually over next years supporting revenue growth.
- →Energy transition and clean energy commitments (600 GW non-fossil fuel, green hydrogen demand, energy storage) present significant long-term demand opportunities.
📈 Profitability & Margins
- →POWERGRID has a strong project pipeline with about ₹1,48,000 Crore projects in hand and ₹67,000 Crore worth projects recently bid out or to be bid, supporting future growth.
- →Capitalization target is ₹22,000 Crore for FY26, expected to increase to about ₹25,000 Crore in FY27 and ₹35,000-₹45,000 Crore in FY27-28, indicating escalating asset base and revenue potential.
- →Revenues from Transmission Based Competitive Bidding (TBCB) projects are growing and will increasingly compensate for declining revenue from older Regulated Tariff Mechanism (RTM) projects.
- →Inflation in capital equipment costs (e.g., transformers, GIS) impacting project costs, with transformer costs doubling over 7 years, which could pressure margins.
- →Profit growth on standalone basis is positive (7% increase), but consolidated profits impacted by higher CSR expenses and JV losses.
- →The company focuses on new growth areas: Battery Energy Storage Systems (BESS) and Green Hydrogen, aiming to emerge as a significant player in 2-3 years.
- →Overall, with expansion in projects and capitalization, earnings, profits, and EPS are expected to grow steadily, barring extraordinary risks.
🏗️ Capital Expenditure Plans
- →Capex plan for FY26 is ₹28,000 Crore, including:
- → - RTM: ₹3,500 Crore
- → - TBCB: ₹19,000 Crore
- → - Other projects: ₹5,300 Crore
- →FY27 Capex expected to be around ₹35,000 Crore.
- →FY28 Capex projected around ₹45,000 Crore.
- →Commissioning target for FY26 is about ₹22,000-₹25,000 Crore.
- →Advanced procurement of critical equipment like transformers is done to mitigate supply challenges.
- →Strategic focus on BESS (Battery Energy Storage Systems) and Green Hydrogen:
- → - Orders placed for Green Hydrogen at Neemrana substation.
- → - Plans to participate in Rajasthan BESS tender (~2000 MW/4000 MWh).
- →Exploring HVDC projects including Khavda KPS 3 to South Olpad and Barmer to South Kalamb.
- →Considering international projects (e.g., Kenya transmission projects at 400kV and 220kV).
- →Gradually increasing investments in telecom, solar (85 MW at Nagda), and sustainability initiatives.
💰 Fundraising & Capital Structure
- →The transcript does not mention any specific plans for new fundraising through debt or equity in the near future.
- →The company has a current Debt-Equity ratio of 58:42 with ₹1,30,000 Crore debt and ₹96,000 Crore net worth.
- →There is no explicit discussion on raising new funds via equity or debt during the Q1 FY26 investors' meet.
- →Focus is primarily on project execution, procurement challenges, and capital expenditure plans (₹28,000 Crore Capex for FY26; ₹35,000 Crore projected for FY27; ₹45,000 Crore for FY28).
- →Existing financial strength and credit ratings at par with sovereign rating indicate capacity to raise funds if required, but no declared targets or intentions on fresh fundraising were shared.
📋 Order Book & Pipeline
- →Current work in hand: Approximately ₹99,000 Crore.
- →Total projects in hand (work in progress + new projects): Around ₹1,90,000 Crore (₹1,48,000 Crore worth projects + ₹41,000 Crore work in progress).
- →New projects approved but yet to be floated: ₹29,000 Crore.
- →Projects already bid out and due for bid submission: ₹39,000 Crore.
- →Combined projects up for grab: About ₹67,000 Crore.
- →Recent approvals in NCT for future bidding: ₹75,000 Crore.
- →Total projects potentially available for bidding: ₹1,40,000 Crore.
- →Expect to win around 50-60% of the ₹67,000 Crore worth bid-out projects.
Key Metrics
Frequently Asked Questions
What were Power Grid Corporation of India Ltd Q1 FY26 results?
Core growth driver is transmission business, with major focus on TBCB projects (~₹99,000 Crore in hand). POWERGRID has a strong project pipeline with about ₹1,48,000 Crore projects in hand and ₹67,000 Crore worth projects recently bid out or to be bid, supporting future growth.
What is Power Grid Corporation of India Ltd share price analysis?
Power Grid Corporation of India Ltd currently shows a neutral. The stock trades at a P/E of 15.6 with a market cap of ₹247,443 Cr. Investors should review the full earnings analysis for detailed insights.
Is Power Grid Corporation of India Ltd planning capital expenditure?
Capex plan for FY26 is ₹28,000 Crore, including: - RTM: ₹3,500 Crore - TBCB: ₹19,000 Crore - Other projects: ₹5,300 Crore - FY27 Capex expected to be around ₹35,000 Crore.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.