Power Grid Corp Of India Ltd
(BOM:532898)
₹
269.4
+0.050 (+0.02%)
Market Cap: 2.51 Tn
Enterprise Value: 3.97 Tn
PE Ratio: 15.75
PB Ratio: 2.49
GF Score: 81/100 
Q1 2027 Power Grid Corporation of India Ltd Earnings Call Transcript
Aug 07, 2026 / 05:30AM GMT
Release Date Price:
₹271.75
(+0.37%)
Key Points
Positve
- Strong capitalization performance in Q1 FY27, achieving INR5,277 crore, which is 3.13 times higher than the previous year's first quarter and 35% of last year's total transmission line commissioning.
- Robust order pipeline with works in hand of INR1.75 lakh crore and a bidding pipeline of INR1.19 lakh crore, supported by a long-term sector outlook of over INR15 lakh crore.
- Successful TBCB wins, securing six projects (including an intrastate project) with a total gross annual tariff of about INR2,200 crore, and a cumulative success rate of 47%.
- Improved receivable days, down from 19.41 to 12 days, with billing at INR10,963 crore and realization at 104% (INR11,404 crore).
- Diversification into new asset classes, including the first synchronous condenser project in India and foray into BESS under regulated mode, enhancing grid stability and future growth opportunities.
- High system availability of 99.8% and strong operational performance, with continued focus on indigenously developed mobile GIS bays for emergency restoration.
- Strong financial position with net worth improving to INR104,028 crore and gross fixed assets rising to INR325,000 crore, supported by a robust internal revenue mechanism for funding growth.
- Positive sector outlook driven by the National Electricity Plan (INR7.9 lakh crore by 2036), hydro potential in the Brahmaputra Basin (INR6.4 lakh crore), and emerging demand from data centers and green hydrogen.
- Successful international expansion, including telecom connectivity to Andaman and Nicobar and first international long-distance communication to Nepal, along with consultancy footprint in 25 countries.
- Sustainability achievements, including meeting the 2025 target of 50% electricity from renewables ahead of schedule and progress toward net-zero and water-positive goals.
Negative
- PAT declined by 1% YoY to INR3,598 crore, impacted by regulatory drag of INR560 crore (INR330 crore from depreciation/interest and INR230 crore from interest differential due to CERC order timing).
- Regulatory tariff trajectory reduces revenue as assets age, with depreciation and interest components declining after 12 years, creating a natural drag on profitability.
- One-time benefits from previous quarters (e.g., INR33 crore write-back from KSK Mahanadi) are not recurring, further pressuring YoY comparisons.
- Execution challenges persist due to right-of-way issues, land compensation guidelines (not yet factored into cost estimates), and potential cost escalations from new land rates.
- Equipment supply constraints, though easing, still pose risks; prices may remain elevated due to raw material costs, impacting project costs and margins.
- Delays in regulatory orders for tariff petitions lead to uncertainty and interest differentials, affecting revenue recognition and profitability.
- TBCB projects are increasingly funded through equity, with INR13,000 crore invested so far, potentially straining balance sheet if growth accelerates without debt funding.
- Lack of separate disclosure for TBCB performance makes it difficult for investors to assess the profitability of the key growth driver, as highlighted by analysts.
- Potential underutilization of transmission assets if renewable generation projects are delayed, though revenue is not directly linked to power flow, deemed COD provisions may still be needed.
- The INR7.9 lakh crore sector CapEx estimate may not fully account for inflation, land compensation, or other escalations, leading to potential cost overruns.
Operator
Ladies and gentlemen, good day, and welcome to the Power Grid Corporation of India Q1 FY27 earnings webinar call hosted by ICICI Securities Limited. (Operator Instructions) Please note, this conference call is being recorded.
I now hand the conference over to Mr. Mohit Kumar from ICICI Securities Limited. Thank you, and over to you, sir.
Mohit Kumar
ICICI Securities Ltd - Analyst
Thanks. Good morning. On behalf of ICICI Securities, I welcome you all to the Q1 FY27 earnings webinar of Power Grid Corporation of India Limited. We will start with detailed presentation, which will be followed by Q&A. I would like to thank the management for giving us the opportunity to host the webinar. Without much delay, now I hand over the call to Mrs. Anjana Luthra, Company Secretary and Compliance Officer of Power Grid. Thank you, and over to you, maâam.
Anjana Luthra
Power Grid Corporation of India Ltd - Compliance Officer, Company Secretary
Thank you, Mohit. Good morning. Iâm pleased to welcome you all to webinar
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