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POWER GRID Corporation of India is a leading power transmission company, known by the stock ticker POWERGRID. With a market capitalization of Rs. 244,884.8 Crores, it operates primarily in the transmission of electric power both in India and internationally.
The company is divided into three main segments:
As of June 30, 2024, Power Grid owned and operated 177,790 circuit kilometers of transmission lines and 278 substations, with a transformation capacity of 528,761 mega volt ampere.
In addition to power transmission, POWER GRID offers a range of consultancy services, including power system planning, environmental impact assessments, project management, and more. It also provides overhead optic fiber network services under the POWERTEL brand and operates electric vehicle charging stations.
Originally founded as National Power Transmission Corporation Limited in 1989, the company rebranded as Power Grid Corporation of India Limited in October 1992 and is headquartered in Gurugram, India.
With a trailing 12-month revenue of Rs. 47,174 Crores, POWER GRID is a profitable enterprise, reporting a profit of Rs. 15,544.9 Crores in the last four quarters. The company has experienced a 11.1% revenue growth over the past three years and distributes dividends to its investors, offering a dividend yield of 5.7% per year, with Rs. 15 in dividends per share distributed in the last year.
Summary of POWER GRID Corp OF INDIA's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Feb 25
Management Outlook:
Power Grid Corporation of India Limited anticipates robust growth driven by India's economic expansion, renewable energy (RE) targets, and transmission sector investments. Key growth drivers include:
Major Points:
Key Projects:
The management remains confident in meeting capitalisation targets and leveraging India's transmission sector growth, backed by a strong pipeline and strategic execution plans.
Last updated: Feb 25
1. Question: Are we on track for the steep increase in capitalisation implied for Q4 to meet the FY25 target of ~Rs.180 billion? What are the fresh project wins in recent months?
Answer: Management confirmed they are targeting ~Rs.18,000 crore capitalisation for FY25. Works-in-hand (Rs.1.43 lakh crore) reflect project execution, with CapEx reducing the pending amount. Recent wins (e.g., a Rs.3,500 crore Karnataka project) were added but offset by ongoing capitalisation.
2. Question: What is the impact of the FY25"“29 CERC tariff regulations on O&M expenses, and how did PGCIL's JV EESL perform in 9M FY25?
Answer: CERC regulations reduced O&M income by Rs.140 crore in Q3. EESL contributed a Rs.140 crore loss (9M FY25) to consolidated results. No further equity is being infused into EESL.
3. Question: Why was the Fatehpur-Bhadla HVDC project awarded to a competitor at twice the initial bid?
Answer: Adani won the rebid at ~Rs.25,000 crore due to revised Rajasthan land policies. PGCIL's bid was ~Rs.3,700 crore initially but deemed unviable under new guidelines, leading to withdrawal.
4. Question: What explains the 3% YoY decline in standalone revenue from operations?
Answer: Regulated tariff income declines annually due to reduced interest on depreciating loans, offset by new asset additions. PAT remains stable due to fixed RoE, but revenue dips as older assets depreciate.
5. Question: What is the borrowing cost for the $200 million green loan, and will foreign debt replace domestic borrowing?
Answer: The loan has a ~1% interest rate (linked to TONA) with forex risk. Foreign borrowing complements domestic debt but won't replace it. More green loans are planned for diversification.
6. Question: How will Power Grid execute Rs.1.76 lakh crore projects amid equipment/land delays?
Answer: Bulk procurement and vendor capacity expansion address equipment shortages. RoW issues are mitigated via ministry/state coordination. Delays occur but are minimized, with projects taking ~2"“3 years on average.
7. Question: What is the dividend outlook given rising CapEx needs?
Answer: Dividend reduction (Rs.7.75/share interim for FY25) aligns with higher equity needs for CapEx. Future payouts will balance shareholder returns and project funding, guided by DIPAM norms.
8. Question: What is the pipeline for HVDC and RTM projects?
Answer: Key HVDC projects include Khavda-Nagpur (Rs.35,000 crore) and Pang-Leh (Rs.20,000+ crore). RTM projects like offshore interconnections and Andhra Pradesh lines are prioritized. Andaman HVDC is pending approval.
9. Question: Why was the PG InvIT monetization plan halted?
Answer: National Monetization Pipeline guidelines restrict permanent asset transfers. Revenue-sharing attracts 18% GST, making it unviable. Securitization via SPVs is now preferred.
10. Question: What key projects drive Q4 capitalisation confidence?
Answer: Narela (Rs.1,500 crore), Khavda-II/III (Rs.3,500 crore), Ahmedabad-Banaskantha (Rs.1,500 crore), and Kurnool (Rs.1,500 crore) are nearing completion. RoW resolutions and equipment readiness support targets.
Technicals: Bullish SharesGuru indicator.
Smart Money: Smart money has been increasing their position in the stock.
Balance Sheet: Reasonably good balance sheet.
Dividend: Pays a strong dividend yield of 4.89%.
Profitability: Very strong Profitability. One year profit margin are 33%.
Size: It is among the top 200 market size companies of india.
Momentum: Stock price has a strong positive momentum. Stock is up 5.4% in last 30 days.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
No major cons observed.
Comprehensive comparison against sector averages
POWERGRID metrics compared to Power
| Category | POWERGRID | Power |
|---|---|---|
| PE | 18.34 | 17.20 |
| PS | 6.04 | 2.85 |
| Growth | 0 % | 4 % |
POWERGRID vs Power (2021 - 2025)
Analysis of POWER GRID Corp OF INDIA's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
| Description | Share | Value |
|---|---|---|
| Transmission | 95.6% | 11.1 kCr |
| Telecom | 2.4% | 274.3 Cr |
| Consultancy | 2.1% | 240.7 Cr |
| Total | 11.7 kCr |
Understand POWER GRID Corp OF INDIA ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| PRESIDENT OF INDIA | 49.4% |
| NIPPON LIFE INDIA TRUSTEE LTD-A/C-NIPPON INDIA NIF | 3.15% |
| LICI NEW PENSION PLUS SECURED FUND | 2.63% |
| GOVERNMENT OF SINGAPORE | 2.57% |
| PARAG PARIKH ARBITRAGE FUND | 2.22% |
| SBI ESG EXCLUSIONARY STRATEGY FUND | 2.19% |
| ICICI PRUDENTIAL SENSEX ETF | 1.6% |
| NPS TRUST A/C - LIC PENSION FUND LIMITED - NPS LIT | 1.11% |
| HDFC MUTUAL FUND-HDFC ARBITRAGE FUND | 1.1% |
Distribution across major stakeholders
Distribution across major institutional holders
Investor Care | |
|---|---|
| Dividend Yield | 4.89% |
| Dividend/Share (TTM) | 15 |
| Shares Dilution (1Y) | 0.00% |
| Diluted EPS (TTM) | 16.71 |
Financial Health | |
|---|---|
| Current Ratio | 0.8 |
| Debt/Equity | 1.33 |
| Debt/Cashflow | 0.3 |
Valuation | |
|---|---|
| Market Cap | 2.85 LCr |
| Price/Earnings (Trailing) | 18.34 |
| Price/Sales (Trailing) | 6.04 |
| EV/EBITDA | 7.02 |
| Price/Free Cashflow | 10.52 |
| MarketCap/EBT | 14.75 |
Fundamentals | |
|---|---|
| Revenue (TTM) | 47.17 kCr |
| Rev. Growth (Yr) | -0.65% |
| Rev. Growth (Qtr) | -0.87% |
| Earnings (TTM) | 15.54 kCr |
| Earnings Growth (Yr) | -4.14% |
| Earnings Growth (Qtr) | 1.81% |
Profitability | |
|---|---|
| Operating Margin | 40.97% |
| EBT Margin | 40.97% |
| Return on Equity | 16.89% |
| Return on Assets | 6.09% |
| Free Cashflow Yield | 9.51% |
Updated Apr 28, 2025
Despite positive developments, Power Grid's shares are currently down by 2.81%, trading at Rs 305.55.
Profit booking has led to Power Grid's decline of 2.30% to Rs 312.60 amid broader market fluctuations.
Technical analysis indicates that Power Grid has shown weaker performance metrics compared to sector competitors, raising concerns among investors.
Power Grid Corporation has commenced commercial operations for its 85 MW Solar PV Power Plant in Nagda, Ujjain, highlighting its commitment to renewable energy.
The successful commissioning of the Transmission System associated with the Western Region Expansion Scheme-XXVII is expected to positively impact the company's operational performance.
Power Grid's shares have shown a significant 15.41% gain over the past month, indicating strong long-term growth potential.
This information is AI-generated and may contain inaccuracies. Please verify from multiple sources.
Detailed comparison of POWER GRID Corp OF INDIA against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| NTPC | NTPCPower Generation | 3.46 LCr | 1.89 LCr | +0.51% | -0.77% | 15.33 | 1.83 | +6.49% | +14.37% |
| ADANIGREEN | Adani Green EnergyPower Generation | 1.45 LCr | 11.93 kCr | +0.05% | -49.66% | 74.97 | 12.11 | +11.99% | +32.33% |
| TATAPOWER | Tata Power Co.Integrated Power Utilities | 1.24 LCr | 66.01 kCr | +3.09% | -10.16% | 27.43 | 1.88 | +9.77% | +8.18% |
| NHPC | NHPCPower Generation | 86.46 kCr | 11.38 kCr | +6.34% | -5.47% | 27.72 | 7.6 | +4.35% | -24.60% |
| TORNTPOWER | TORRENT POWERIntegrated Power Utilities | 77.53 kCr | 29.71 kCr | +2.58% | +1.91% | 31.93 | 2.61 | +9.88% | +25.64% |
| SJVN | SJVNPower Generation | 37.98 kCr | 3.4 kCr | +5.58% | -27.31% | 37.72 | 11.17 | +17.82% | +16.05% |