Power Grid Corporation of India Ltd

- 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.

- 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.

- 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.

- 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.

- 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.