Power Grid Corporation of India Ltd

- POWERGRID expects to require equity funding of around Rs. 12,000 to 14,000 crores annually to support its capex of Rs. 60,000 to 70,000 crores over the next 10 years. - The company's current profits (Rs. 15,000+ crores, expected to grow to Rs. 17,000-20,000 crores) and compulsory dividend payout (~Rs. 5,000 crores) indicate sufficient internal accruals to meet equity requirements without major external equity raises. - The equity portion can be flexibly reduced below 20% if needed (e.g., to 18-19%) to manage funding needs. - No explicit mention of immediate new equity or debt fundraising; focus is on using profits and managing equity cap. - POWERGRID has indicated no challenges in meeting capex requirements, implying current financing strategies, including debt, are adequate. - Any merger or restructuring of SPVs will require regulatory approvals but are primarily for governance, not fundraising. In summary, no announced immediate plans for external fundraising; internal accruals and manageable equity levels are expected to suffice.

- Current Capex: Power Grid expects average annual capex of around Rs. 37,000-40,000 crores for FY26-27 and FY27-28, with capitalization targets of Rs. 30,000-35,000 crores. - Work-in-progress (CWIP) projects stand at Rs. 1.48 lakh crore including ongoing projects, excluding the uncertain Leh-Pang HVDC/AC project. - Future Capex pipeline: The revised Rs. 7.9 trillion (Rs. 7.86 lakh crore) plan for FY27-36 aligns with India's target of 786 GW renewable energy by 2035. - Bid pipeline visibility: Rs. 70,000 crores worth of projects in near-term bids with an estimated Rs. 3.6 lakh crore worth projects expected over the next 4 years, though subject to updates post new reports by CEA/CTUIL. - Capex funding sourced through profits (~Rs. 15,000 crore+ expected profit), equity (around 20%), and dividend payouts. - Capacity to undertake more projects is flexible pending wins and government projects, with no anticipated execution or funding challenges. - Strategic mergers of SPVs are ongoing to improve governance with no direct capex impact.

- Power Grid aims to execute approximately Rs. 6 lakh crore worth of transmission projects by 2035, averaging Rs. 60,000 crore per year. - The revised transmission investment plan for FY27-36 is valued at around Rs. 7.9 trillion, with projects continuously being identified. - For FY29 to FY36, average capex guidance is about Rs. 40,000 crores per year, with capitalization around Rs. 35,000 crores annually. - Ongoing projects worth Rs. 1.48 lakh crore (including CWIP) are in progress, with potential for additional projects depending on new bidding opportunities. - Bid pipeline visibility remains strong, with expectations of Rs. 70,000 crore worth of projects to be bid in near-term and Rs. 3.6 lakh crore over next 4 years. - Power Grid expects increasing electricity demand driven by India's economic growth, renewable energy expansion, and energy transition needs through 2035 and beyond.

- POWERGRID expects increasing profits aligned with rising capex and project execution. - Profit forecasts suggest growth to around Rs. 17,000-20,000 crore in the medium term to support Rs. 60,000-70,000 crore annual capex. - Equity requirements expected at 18-20%, manageable within projected profit growth. - Increased execution capacity from Rs. 8,000 crore (3-4 years ago) to Rs. 35,000 crore currently indicates strong growth potential. - Bid pipeline remains robust with new projects from revised plans, supporting sustained earnings growth. - No significant impact expected on returns from price escalation due to tariff pass-through mechanisms. - Overall, POWERGRID is confident of delivering consistent earnings and maintaining profitability through project wins and scaling operations up to FY36.

- Current works in progress (orderbook) stand at approximately Rs. 1.48 lakh crore, which includes projects under construction (CWIP). - The Leh-Pang Kaithal HVDC project, earlier considered part of the orderbook, has been excluded due to uncertainty and possible conversion to AC network. - Practically, around Rs. 1 lakh crore of projects are considered for CapEx currently. - Rs. 73 GW transmission system from Rajasthan has been tendered and is under execution; planning beyond this has faced delays but is now progressing. - Bid pipeline (upcoming tenders) remains consistent with earlier guidance (~Rs. 70,000 crore worth of near-term projects and Rs. 3.6 lakh crore over 4 years) but awaiting updates post recent CEA plan revisions. - POWERGRID maintains a >50% project win rate and expects to continue bidding actively on projects as they are announced.