IndiGrid secures ₹6,650 crore Himachal acquisition pipeline

IndiGrid Infrastructure Trust has executed definitive agreements with EnerGrid to acquire two Himachal Pradesh transmission assets after commissioning for enterprise value of up to ₹6,650 crore, extending its disclosed acquisition pipeline to expected commercial operation dates of Q4 FY29 for Shongtong and Q3 FY30 for Luhri.

What has IndiGrid agreed to acquire from EnerGrid?

IndiGrid has agreed to acquire Shongtong Power Transmission Limited and Luhri Power Transmission Limited from EnerGrid after the projects are commissioned, at a combined enterprise value of up to ₹6,650 crore. The agreements establish a future acquisition pipeline rather than an immediate portfolio addition because both projects are listed in EnerGrid’s under-construction portfolio.

Shongtong has a proposed enterprise value of up to ₹5,300 crore, while Luhri has a proposed enterprise value of up to ₹1,350 crore. Shongtong therefore represents the larger part of the disclosed pipeline by value, and its expected commercial operation date, or COD, of Q4 FY29 comes before Luhri’s expected Q3 FY30 COD.

The presentation states that proposed acquisition enterprise values in EnerGrid’s under-construction portfolio exclude adjustments for working-capital movements. It does not disclose project-specific funding, a transaction closing date following COD, or the cash-flow contribution expected from either Shongtong or Luhri after their acquisition.

What infrastructure will the Himachal projects provide?

Shongtong is designed to evacuate 600 megawatts of hydro power in Himachal Pradesh through about 450 circuit kilometres, or ckms, of transmission lines and a 630 megavolt-amperes, or MVA, substation. The project is classified in the EnerGrid portfolio as a fixed-tariff, central transmission asset and is expected to reach COD in Q4 FY29.

Luhri is designed to evacuate hydro power in Himachal Pradesh using about 104 ckms of line and a 1,050 MVA substation. Although its line network is about 346 ckms shorter than Shongtong’s, Luhri’s planned substation capacity is 420 MVA higher, with the project expected to reach COD in Q3 FY30.

Together, the assets would add about 554 ckms of lines and 1,680 MVA of substation capacity to IndiGrid’s identified post-commissioning pipeline. The broader EnerGrid under-construction portfolio consists of nine projects across seven states and one Union Territory, with about 1,225 ckms, about 9,180 MVA and about 1.25 gigawatt-hours of battery energy storage system capacity.

How does the pipeline compare with IndiGrid’s existing portfolio?

The ₹6,650 crore proposed value is equal to about one-fifth of IndiGrid’s ₹33,667 crore assets under management, or AUM, reported at September 30, 2026. This is a comparison of disclosed scale rather than a post-acquisition valuation forecast, since the reported AUM includes operational and under-construction assets across IndiGrid and EnerGrid.

IndiGrid’s operational transmission and battery energy storage portfolio comprised 23 projects, about 8,965 ckms, 25,050 MVA and 450 MW or 900 megawatt-hours as of September 30, 2026. Against that operating base, the two Himachal projects’ 554 ckms are relatively limited in line length, while their combined 1,680 MVA would add further substation capacity after commissioning and acquisition.

The timing also differs from additions commissioned in Q2 FY27. IndiGrid commissioned Rajasthan BESS Private Limited, a 250 MW and 500 MWh battery energy storage project in Rajasthan, and Ishanagar Power Transmission Limited, which includes a 4,000 MVA, 765/400/220 kilovolt substation and about 33 km of 765 kilovolt lines. Shongtong and Luhri are instead expected to be available in FY29 and FY30.

What is IndiGrid’s financial and operating position before these acquisitions?

IndiGrid reported Q2 FY27 operational revenue of ₹872 crore, up 8.4% year on year, and operational earnings before interest, tax, depreciation and amortisation, or EBITDA, of ₹782 crore, up 7.9%. The operational EBITDA margin was 85.4%, while total reported revenue including service-concession accounting was ₹1,315 crore, compared with ₹827 crore in Q2 FY26.

The weighted average transmission availability for Q2 FY27 was about 99.4%, while transmission collections were 103%, compared with 108% in Q2 FY26. Solar collections rose to 94% from 89%, and solar days sales outstanding, or DSO, fell to 35 days from 51 days; transmission DSO increased to 37 days from 35 days.

IndiGrid declared Q2 FY27 distribution per unit, or DPU, of ₹4.12, compared with ₹4.00 in Q2 FY26. Management said the quarterly declaration was in line with its FY27 DPU guidance of ₹16.48 per unit; the presentation also reported net debt to AUM of 60.4%, average debt cost of about 7.46%, gross borrowings of about ₹21,500 crore and cash of ₹1,568 crore.

What are management’s stated acquisition and execution priorities?

Management says it plans to add assets worth about ₹2,000 crore during FY27 from EnerGrid’s identified pipeline, a nearer-term objective separate from the Himachal projects expected in FY29 and FY30. Its stated strategy includes executing augmentation work and greenfield projects under construction while pursuing acquisitions it describes as value accretive.

IndiGrid also says it will participate with EnerGrid in synergistic greenfield opportunities across transmission and battery energy storage systems, or BESS, to build a phased acquisition pipeline. Management has identified optimisation of interest costs and borrowing tenor for upcoming acquisitions, alongside maintaining leverage headroom for organic and inorganic growth, but has not disclosed a financing plan for Shongtong or Luhri.

Execution remains a relevant consideration because the agreements require commissioning before acquisition. Separately, IndiGrid reported that an August 8, 2026 fire impaired equipment at Gurgaon-Palwal Transmission Limited’s Sohna substation; it expects full operations by May 2027, says the valuation reflects the impact, and has filed insurance claims.

Conclusion

The agreements give IndiGrid a defined route to add two fixed-tariff hydro-evacuation transmission assets in Himachal Pradesh for up to ₹6,650 crore after commissioning. Shongtong and Luhri would collectively contribute about 554 ckms of lines and 1,680 MVA of substation capacity, while extending the identified acquisition pipeline beyond FY27 additions into FY29 and FY30.

The next disclosed milestones are Shongtong’s expected Q4 FY29 COD and Luhri’s expected Q3 FY30 COD, as well as management’s FY27 plan to add about ₹2,000 crore of EnerGrid-pipeline assets. Investors can also watch management’s stated FY27 DPU guidance of ₹16.48 per unit, its 99.5% or higher operational-portfolio availability target, and any future disclosure on funding or final transaction terms.