⚡ Power Grid Corporation of India Limited (POWERGRID), the nation’s backbone in electricity transmission, stands as one of the most reliable and profitable public sector undertakings (PSUs). With a vast network spanning thousands of kilometers, it ensures uninterrupted power supply across India, making it critical to the country’s energy security and infrastructure growth.
📈 Company Growth & Financials
🔹 Quarterly & Yearly Performance
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Q1 FY26 (Apr–Jun 2025)
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📊 Revenue: +2% YoY (steady transmission income)
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💰 Net Profit: ₹3,630.6 cr, down –2.5% YoY (₹3,723.9 cr last year)
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⚙️ Margins: EBITDA above 70%, PAT margin ~34%
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Q4 FY25 (Jan–Mar 2025)
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Revenue: ₹12,275 cr, ↑2.5% YoY
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PAT: ₹4,143 cr, marginal decline (–0.6% YoY)
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EPS: stable at ~₹5.9/share
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Full Year FY25
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Consolidated Profit: ₹15,521 cr (flat YoY, but still robust)
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Standalone Profit: ₹15,354 cr
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Interest Coverage Ratio: 3.96×
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Debt-to-Equity: 1.41
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Dividend: ₹9 per share declared 🏦
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📊 3–5 Year Trend
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Revenue: Grew steadily but at low single digits 📉 (typical of utility sector).
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Profit: Flat, as regulated tariffs cap earnings.
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Diversification: 🚀 Consultancy services (+79% YoY) and Telecom (+23.9% YoY) gave non-core growth momentum.
✅ Takeaway: Power Grid shows stability over high growth. It’s a cash cow utility with small but steady expansion.
📦 Order Book & Business Expansion
🟢 Order Book Strength
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Current order pipeline: ~₹1.55 lakh crore 💼
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FY25 CapEx: ₹26,255 cr
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FY26 Planned CapEx: ₹28,000 cr 📈
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Bid pipeline FY26: ₹45–46 k cr (with ~₹34 k cr already under bidding).
🌍 New Verticals
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📡 Telecom Expansion – using transmission towers for fibre leasing.
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📊 Consultancy Projects – big surge in India & abroad.
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⚡ Digital Substations & Smart Grid Solutions – remote transformer deployment (largest 400 kV, 315 MVA in India).
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🟢 Supporting Green Energy Corridors, Offshore Wind & EV charging infra.
🏗 Execution Capability
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System availability: 99.82% (world-class reliability)
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Challenges: Right of Way (RoW) disputes, equipment delays.
✅ Takeaway: Order book visibility + diversification = predictable earnings for next 2–3 years.
🔮 Future Projections
📌 FY26 Guidance
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CapEx: ~₹28,000 cr planned
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Capitalisation: ₹23–25 k cr expected next year
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EPS: stable growth of 4–6% CAGR in coming years
🤝 Strategic Partnerships
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10-year Master Agreement with EPRI (USA) for R&D
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Collaborations for digital grids, green hydrogen & battery storage
🚀 Growth Drivers Ahead
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Govt. push for Green Energy Corridors 🌱
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High demand for intrastate transmission projects ⚡
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Increasing renewable energy integration 🌞🌬
✅ Takeaway: Future revenue streams secure and scalable, driven by government-backed infra expansion.
💳 Debt & Financial Health
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Total Debt: ₹1.31 lakh crore
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Debt-Equity Ratio: ~1.41 (manageable for a PSU utility)
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Net Worth: ₹92,063 cr 💪
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Margins:
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EBITDA ~71%
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PAT ~34%
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Cash Flows: Strong and consistent 💵
📉 No aggressive debt repayment plan, but stable refinancing.
📈 Dividend track record makes it a defensive stock for income investors.
✅ Takeaway: Financial health is solid and sustainable, though heavy borrowings limit explosive profit growth.
🌍 Market Size & Opportunities
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India’s Power Transmission CapEx (2022–2032): ~₹9.2 lakh crore 🔥
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Domestic TAM: Expanding due to renewable integration, cross-border grids.
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Opportunities:
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Offshore Wind Transmission 🌊
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EV Charging Networks 🚗⚡
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Battery Energy Storage Systems 🔋
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⚠️ Risks:
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Tariff caps limit earnings 📉
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Land acquisition & RoW issues delay projects ⏳
✅ Takeaway: TAM is huge, sector tailwinds support stable growth.
⚖️ Regulatory & Market Influences
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✅ No SEBI/ASM restrictions
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📈 Promoter holding stable: ~51.34%, negligible pledging
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FII/DII flows: Mixed; FIIs reduced positions in last quarter, DIIs increased (PSU preference)
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Market sentiment: Stock ~25% below 52-week high, showing caution
✅ Takeaway: Regulatory environment stable, PSU backing = safe bet.
📉 Technical Analysis (Monthly View)
📊 Price Levels (as of Aug 29, 2025)
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CMP: ₹274–275
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Resistance: ₹282–290 (50/100/200-day MA cluster)
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Support: ₹270–272
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RSI: ~30 (oversold territory)
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MACD: Negative 🔻
📌 Trends
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Short Term (1–3 months): Bearish 🟥 (pressure due to market sell-off)
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Medium Term (6–12 months): Neutral to Slight Bullish 🟨 (if order book execution picks up)
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Long Term (2–3 years): Bullish 🟩 (CapEx cycle & infra expansion to play out)
✅ Takeaway: Near-term pain, but long-term gain for investors.
📊 Valuation & Outlook
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Intrinsic Value: ~₹241 (CMP ₹275 → ~14% premium)
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PE Ratio: ~17× (fair for a stable utility)
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PB Ratio: ~3×
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ROE: ~16–17%
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ROCE: ~12%
⚖️ Valuation View:
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Slightly overvalued in short term 📉
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Fair value for long-term defensive investors with steady dividends 💰
✅ Takeaway: Best suited for long-term income & stability investors, not for traders looking for fast gains.
❓ FAQs
Q1. Is POWERGRID’s profit growing YoY?
👉 Marginal growth in revenue, profit largely flat due to regulated tariffs.
Q2. What is POWERGRID’s current order book?
👉 ~₹1.55 lakh crore with strong FY26 bidding pipeline.
Q3. Is POWERGRID overvalued or undervalued?
👉 Trading at ~14% above intrinsic value → slightly overvalued.
Q4. Does POWERGRID have high debt?
👉 Yes, ₹1.31 lakh crore, but manageable (Debt-Equity ~1.41).
Q5. What are the stock’s support & resistance levels?
👉 Support ~₹270; Resistance ~₹290.
Q6. Is POWERGRID good for long-term investment?
👉 Yes, strong dividend + infra growth = defensive long-term play.
✅ Final Word: POWERGRID remains India’s backbone in power transmission – low-risk, high-dividend, with steady order book-driven growth. Short-term charts show weakness, but long-term investors with patience will benefit as India’s energy infra push unfolds.
