This PSU power stock, which is responsible for developing, operating, and maintaining the Inter-State Transmission System (ISTS) while also offering telecom and consultancy services, jumped 5 percent after securing three transmission projects under tariff-based competitive bidding (TBCB).
Stock Price Movement:
With a market capitalization of Rs. 2,46,000.97 crores, the share of Power Grid Corporation of India Limited has reached an intraday high of Rs. 267.15 per equity share, rising nearly around 5.16 percent from its previous day’s close price of Rs. 254.05. Since then, the stock has retreated and is currently trading at Rs. 264.50 per equity share.
What Happened:
On March 3, 2025, Power Grid Corporation of India Limited (POWERGRID) has won three key projects under Tariff-Based Competitive Bidding (TBCB) to strengthen India’s inter-state transmission system. These projects, developed on a build, own, operate, and transfer (BOOT) basis, aim to improve power evacuation and integration.
The first project enhances power evacuation from Rajasthan REZ Ph-V (4 GW) with transformation capacity augmentation and 765kV D/C transmission lines in Rajasthan and Madhya Pradesh. The second project increases the transformation capacity at the Banaskantha (Raghanesda) substation in Gujarat.
Additionally, the third project supports Kurnool-IV REZ (4.5 GW) by setting up a new pooling substation and transmission lines in Andhra Pradesh and Karnataka. These projects will enhance power transmission and boost renewable energy integration.
Capex Expansion:
Power Grid Corporation (PGCIL) has increased its capital expenditure (capex) plans due to strong growth and higher demand. For FY25, the company has raised its capex target to Rs 23,000 crore from the earlier Rs 18,000 crore.
Looking ahead, the company plans to invest even more, with Rs 28,000-30,000 crore for FY26 and Rs 35,000 crore for FY27. Earlier, the company had estimated Rs 20,000 crore for both years, showing its rising focus on infrastructure development.
Project Execution:
In Q3, Power Grid Corporation commissioned 1,399 circuit kilometers of transmission lines and expanded transformer capacity by 9,185 MVA. The company is working on two major HVDC projects, such as the Khavda to Nagpur project, worth Rs 35,000 crore, and the Pang to Leh project, valued at Rs 20,000 crore. Both projects are expected to be completed within the next five years, strengthening the country’s power infrastructure.
Business Highlights of 9M FY25:
In the first nine months of FY25, the company managed 1,518 transmission lines spanning 1,79,594 circuit kilometers, along with 280 substations and 5,52,961 MVA capacity. The interregional transfer capacity reached 99,580 MW, accounting for 84 percent of India’s total.
Additionally, the company secured seven ISTS TBCB projects worth Rs 2,077 crore and invested Rs 7,649 crore in Q3, bringing total capital expenditure to Rs 17,651 crore for the period.
Recent quarter results:
Power Grid Corporation of India Limited’s revenue has decreased by 2.74 percent, from Rs. 11,550 crore in Q3 FY24 to Rs. 11,233 crore in Q3 FY25. The net profit has also decreased by 4.30 percent from Rs. 4,028 crore in Q3 FY24 to Rs. 3,862 crore in Q3 FY25.
Written by – Nikhil Naik
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