Synopsis:
Power Grid Corporation of India Limited has received a Letter of Intent for a project, after winning as a successful bidder through a tariff-based competitive bidding process, to strengthen the transmission system at Davanagere and support renewable energy integration.
The shares of India’s largest electric power transmission company are engaged in the business of implementation, operation, and maintenance of the Inter-State Transmission System, Telecom and consultancy services are in focus after winning as a successful bidder for a project.
With a market capitalization of Rs.2,57,859.24 crore, the shares of Power Grid Corporation of India Ltd were trading at Rs.277.25, down by 0.91 percent from the previous day’s closing price of Rs.279.80.
Work Order
Power Grid Corporation of India Limited has won an inter-state transmission project through a tariff-based bidding process to improve the Davanagere network for the renewable energy network. The project will be implemented under the Build, Own, Operate, and Transfer (BOOT) model.
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About the Company & Others
Power Grid Corporation of India Limited, a public sector company, responsible for electric power transmission in India. It manages the planning, construction, operation, and maintenance of the country’s Inter-State Transmission System and also provides telecom and consultancy services.
The company operates about 90% of India’s interstate and inter-regional power transmission network. The company has also entered the telecom sector by using its nationwide transmission infrastructure and spare capacity from Unified Load Dispatch Centre (ULDC) projects.
In Q1 FY26, Power Grid Corporation’s consultancy business recorded a total income of ₹329 crore, a significant rise from ₹121 crore in Q1 FY25, driven partly by a ₹153 crore Smart Meter project for PESL.
The company secured 11 new orders, and currently, there are 70 ongoing projects, with a strong focus on renewable energy, intra-state networks, diversions, and battery energy storage systems.
Internationally, it received 2 new orders in Q1, and there are 17 ongoing projects. Expanding its transmission services across South Asia, Africa, the Americas, and Australia and operating in 25 countries.
Moving on to revenue from operations grew from Rs.11,006.18 crores in Q1FY25 to Rs.11,196.22 crores in Q1FY26. Net profit slipped from Rs.3,723.92 crore in Q1FY25 to Rs.3,630.58 crores in Q1FY26.
It has delivered a ROE and ROCE of Rs.17 percent and 12.8 percent. The stock’s PE is 16.54 which is above the industry PE ratio of 16.87, suggesting the share may be overvalued compared to its peers.
Written by Jhanavi Sivakumar
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