Power Grid CorpnQ1 FY27
Power Grid Corpn Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹270P/E: 15.9Market Cap: ₹2.5L CrSector: Power
Management growth scorecard
Revenue
Category 3
Margin
Category 3
Fundraise
N/A
Order
Yes
Capex
Yes
2 of 4 growth signals are positive.
Full analysisRevenue guidance
Category 3- →POWERGRID expects significant growth driven largely by Transmission-Based Competitive Bidding (TBCB) projects, with equity investments in operational TBCB projects rising from Rs. 4,671 crore to Rs. 9,965 crore.
- →New awards this year total Rs. 2,200 crore in annual revenues, indicating a robust project inflow.
- →The government plans Rs. 7.9 lakh crore capex by 2036 for transmission to support non-fossil fuel capacity; this is expected to be bid out over the next 3-4 years.
- →Operational revenues start accruing once assets are commissioned, unaffected by power flow or generation timing.
- →Tariff and revenue models are mostly rupees per annum, not linked to actual energy transmitted, ensuring stable revenue.
- →BESS (battery energy storage systems) projects under regulatory return basis are being pursued, opening new revenue streams.
- →Equipment supply constraints easing due to increased manufacturing capacity and government allowing more players including some Chinese OEMs, potentially reducing costs and improving project timelines.
Margin guidance
Category 3- →POWERGRID expects continued growth driven largely by projects under the Tariff Based Competitive Bidding (TBCB) regime, with equity investment in TBCB projects nearly doubling from Rs. 4,671 crore to Rs. 9,965 crore.
- →The company aims for balanced growth with profitability, ensuring returns remain attractive and well-calibrated for investors.
- →Regulatory characteristics cause some short-term drag on revenues due to depreciation and interest timing differences, estimated around Rs. 560 crore for Q1 FY27.
- →Capitalization and new asset commissioning are progressing strongly, with Rs. 5,277 crore capitalized in Q1 FY27 and a 3% increase in transmission charges.
- →Earnings per share (EPS) stood at Rs. 3.87, with a stable financial profile and strong net worth growth.
- →POWERGRID's investment funding for TBCB projects is primarily internal accrual, supporting sustainable growth.
- →The company plans enhanced transparency on TBCB financial disclosures to build investor confidence.
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Fundraise plans
From the provided text on page 16 and surrounding pages, there is no explicit mention of any current or future plans for fundraising through debt or equity by Power Grid Corporation of India Limited. Key points related to funding and financials are:
- Equity investments in TBCB projects are funded entirely through internal accruals (equity/cash), not debt.
- The company has an increasing capital work in progress and gross fixed assets, indicating growth funded through existing mechanisms.
- Debt has increased, reflecting growth, but no specific new debt issuance or equity fundraising plans have been disclosed.
- POWERGRID has signed a green loan agreement with JBIC for JPY80 billion, reflecting an existing financing arrangement but not a new fundraising announcement.
- Management emphasizes strong internal revenue generation supporting growth without needing external equity.
In summary, no new debt or equity fundraising plans are currently disclosed.
Order book
YesThe transcript does not explicitly provide specific details on the current or expected order book or pending orders for Power Grid Corporation of India Limited as of Q1 FY 2026-27. However, related operational highlights and insights include:
- Transmission lines commissioned in Q1 FY27: 1,635 circuit kilometers (~35% of last year's achievement).
- Transformation capacity added: Approx. 10,500 MVA.
- Capital work in progress increased from Rs. 41,610 crore to Rs. 50,419 crore, indicating ongoing projects.
- The company is actively bidding for projects such as the Rajasthan Phase IV Barmer Complex HVDC project, with bids submitted and evaluations ongoing.
- Equipment supply situation is improving with increased manufacturing capacities and approved suppliers, potentially enabling smoother order fulfillment.
- Emphasis on growth through TBCB (Tariff Based Competitive Bidding) projects which form the main driver for future projects and investments.
No direct figures on order book or full pending project valuations are disclosed in this specific transcript extract.
Capex plans
Yes- →The government has estimated a massive capex of Rs. 7.9 lakh crore in the transmission sector by 2036 to support non-fossil fuel capacity addition.
- →This Rs. 7.9 lakh crore capex is expected to be bid out over the next 3 to 4 years to ensure system readiness by 2035-36, considering 2-3 years of construction time.
- →The current immediate capex stands at Rs. 1.19 lakh crore, which is part of the overall Rs. 7.9 lakh crore.
- →POWERGRID is capitalizing on opportunities in growth areas like green hydrogen, data centers, and renewable energy projects.
- →Internal accruals are being used to fund equity investments in operational and under-construction TBCB projects, totaling Rs. 13,000 crore so far.
- →The company is exploring battery energy storage systems (BESS) under new regulatory provisions to complement transmission.
- →There is also a strong pipeline of HVDC projects aligned with the evolving generation and load landscape.
How does Power Grid Corpn rank vs peers in Power?
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