Power Grid Corporation
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Power Grid Corporation of India Limited (POWERGRID) is positioned for sustained growth, bolstered by a robust ₹1.75 lakh crore work-in-hand portfolio and a long-term opportunity pipeline exceeding ₹15 lakh crore. Management's focus on integrating renewable energy, particularly through investments in Battery Energy Storage Systems (BESS) and high-voltage direct current (HVDC) technology, is critical for enhancing operational efficiency and meeting rising demand from data centers and green hydrogen initiatives. Despite facing execution risks related to land acquisition and regulatory compliance, the company's strong operational performance, evidenced by a 99.8% system availability, supports Vista's positive financial outlook, which anticipates stable revenue growth and improving margins. The current valuation aligns with intrinsic value, with an expected upside of approximately 35%. Industry dynamics, including increasing electricity demand and government support for renewable integration, further underpin this outlook. Over the next 12-24 months, key opportunities include capitalizing on the extensive bidding pipeline and expanding into international markets, while watchpoints include managing execution challenges and regulatory adjustments
Why We Like This Stock
- Robust ₹1.75 lakh crore work-in-hand portfolio supports revenue stability
- Strategic focus on renewable energy integration and advanced technologies like BESS and HVDC enhances competitive positioning
- Strong operational performance with 99.8% system availability underpins management's confidence in future growth
Things To Watch Out For
- Execution risks related to land acquisition and regulatory compliance could impact project timelines
- Dependence on competitive bidding may pressure margins in the TBCB space
- Potential volatility in tariff adjustments could affect reported earnings
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 45,843 | 45,792 | 46,733 | 47,652 | 53,410 |
| Profit Before Tax (Cr.) | 18,534 | 19,050 | 14,547 | 17,096 | 19,933 |
| PBT Margin | 40.4% | 41.6% | 3112.8% | 35.9% | 37.3% |
| Net Profit (Cr.) | 15,093 | 15,694 | 11,382 | 13,463 | 15,697 |
| Earnings Per Share | 16.2 | 16.9 | 12.2 | 14.5 | 16.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Bernstein | ▲ Buy | 305 | 19-May-2026 |
| CLSA | ▲ Buy | 324 | 19-May-2026 |
| Citigroup | ▲ Buy | 380 | 07-May-2026 |
| Elara Capital | ▲ Buy | 360 | 07-Aug-2026 |
| HSBC | ► Hold | 295 | 19-May-2026 |
| ICICI Securities | ▲ Buy | 360 | 08-Aug-2026 |
| JMFinancials | ▲ Buy | 342 | 21-May-2026 |
| Jeffries | ▲ Buy | 340 | 09-Jun-2026 |
| Macguire | ▲ Outperform | 400 | 06-Aug-2026 |
| Moneycontrol | ▲ Overweight | nan | 12-Aug-2026 |
| Prabhudas Liladhar | ▲ Buy | 331 | 10-Aug-2026 |
Company Overview
Show Company Profile
Power Grid Corporation of India Limited, an electric power transmission utility, engages in the power transmission business in India and internationally. It operates in three segments: Transmission Services, Telecom Services, and Consultancy Services. As of 31 March 2025, the company owned and operated 180,195 circuit kilometers of transmission lines, and 282 substations with an aggregate transformation capacity of 551,961 mega volt amperes. It also provides telecom services that offer overhead optic fiber network services using optical ground wire on power transmission lines under the POWERTEL brand name, as well as lease lines, MPLS-VPN, data, infrastructure, and international long-distance services. In addition, it provides consultancy services to the transmission, distribution, and telecom sectors on system planning and feasibility studies; environmental and social studies; design and engineering; contract/procurement services; project management and construction supervision; capacity building; operation and maintenance; asset management; owners' and lenders' engineer services to utilities and funding institutions; preparation of grid code, tariff mechanisms, and market analysis; legal and technical advisory in power transmission; power system studies/DPR preparation; smart grid and EV charging; load despatch and communication; sub-transmission/distribution/rural electrification services; testing and quality assurance and inspection; energy efficiency; and preventive vigilance, as well as human resource development. Further, it operates electric vehicle charging stations; and engages in solar power generation, green hydrogen production, smart metering, and data centers. The company was formerly known as National Power Transmission Corporation Limited and changed its name to Power Grid Corporation of India Limited in October 1992. Power Grid Corporation of India Limited was incorporated in 1989 and is based in Gurugram, India.