IndiGrid signs Rs 6,650 crore deal, pipeline is phased

IndiGrid Infrastructure Trust signed definitive agreements in Q2 FY27 to acquire two Himachal transmission projects from EnerGrid for about Rs 6,650 crore after commissioning, making the addition a phased pipeline rather than an immediate asset transfer. The Rs 5,300 crore Shongtong project is expected to commission about three years after the November 6, 2026 call.

What is IndiGrid acquiring from EnerGrid?

IndiGrid is set to acquire Shongtong Power Transmission Limited and Luhri Power Transmission Limited from EnerGrid after each project is commissioned. Management placed their combined enterprise value, which includes debt in a business valuation, at about Rs 6,650 crore in Q2 FY27, with both projects located in Himachal Pradesh.

The agreement adds identified future transmission assets to IndiGrid’s portfolio rather than operating assets that generated Q2 FY27 revenue. As of the call, IndiGrid had about Rs 33,600 crore of assets under management, or AUM, across 22 states and two union territories, as well as about 2.5 gigawatts of projects in different development stages.

The timing differs from two other EnerGrid-linked projects that were already commissioned during Q2 FY27. Management said Rajasthan BESS Private Limited, a 250-megawatt by 500-gigawatt-hour battery energy storage system, or BESS, in Rajasthan, and Ishanagar Power Transmission Limited in Madhya Pradesh would be acquired in the coming weeks and months under their share-purchase agreement.

How large are IndiGrid’s Himachal projects?

Shongtong is the larger project at about Rs 5,300 crore of enterprise value, while Luhri is valued at about Rs 1,350 crore. Shongtong is intended to evacuate hydroelectric projects in Himachal Pradesh and includes about 400 circuit kilometres of transmission line and 630 megavolt-amperes, or MVA, of substation capacity.

The disclosed value and infrastructure make Shongtong the principal component of the transaction. Luhri has a smaller stated value, but its Q3 2030 commissioning expectation also means it is not an immediate portfolio addition. Management did not disclose Luhri’s line length, substation capacity, purchase funding or closing mechanics on the call.

When will the projects enter IndiGrid’s portfolio?

The two projects are expected to enter IndiGrid’s portfolio after commissioning, with Shongtong expected in about three years and Luhri in Q3 2030. Management described Luhri’s timing as about 36 to 40 months from the November 6, 2026 earnings call, placing both additions beyond the FY27 period.

That schedule separates the Rs 6,650 crore agreement from management’s stated FY27 plan to add assets worth almost Rs 2,000 crore from EnerGrid. The call did not identify those planned FY27 additions by name, but it explicitly linked Shongtong and Luhri acquisitions to their later commissioning dates.

The phased structure means operating revenue and cash flow from the Himachal assets depend on project completion before IndiGrid can acquire them. By comparison, the Q2 FY27 commissioning of Ishanagar added about 4,000 MVA of transformation capacity and about 33 circuit kilometres of 765-kilovolt transmission line to the pool of assets expected to be acquired sooner.

What does IndiGrid’s current financial performance show?

IndiGrid reported Q2 FY27 revenue of Rs 1,315 crore, up 59% from Rs 827 crore in Q2 FY26, while earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 18.3% to Rs 858 crore from Rs 725 crore. Management attributed the reported growth to acquisitions completed during the preceding year across transmission and solar assets.

On an operational basis, Q2 FY27 revenue was Rs 872 crore, up 8.4% year on year, and operational EBITDA was Rs 782 crore, up 7.9%. Net distributable cash flow, or NDCF, generated at the trust level was about Rs 380 crore, compared with Rs 363 crore in Q2 FY26.

IndiGrid declared a Q2 FY27 distribution per unit, or DPU, of Rs 4.12, up 3% from Rs 4.00 a year earlier and in line with management’s FY27 guidance of Rs 16.48. The Rs 4.12 distribution equated to about Rs 392 crore, exceeding quarterly NDCF by about Rs 12 crore, after which the NDCF reserve balance was about Rs 510 crore.

As of September 30, 2026, IndiGrid’s net debt-to-AUM ratio was 60.4% and its average cost of debt was 7.46%. Management also reported that 86% of gross borrowing of Rs 21,500 crore was fixed rate, while refinancing scheduled for FY27 was Rs 850 crore.

Which operating and execution factors should readers track?

IndiGrid’s transmission portfolio recorded weighted-average revenue-basis availability of 99.37% in Q2 FY27, while solar generation was 562.3 million units at a 22% capacity utilisation factor. The two operating BESS projects recorded weighted-average availability of 97.71%, above their 95% requirement, and round-trip efficiency of 88.56% against an 85% requirement.

A fire at the Sohna substation in the Gurgaon-Palwal project affected transformer availability during the quarter. Management said replacement transformers are expected to restore full operations by May 2027, that the cost impact was included in the latest valuation, and that insurance claims had been filed.

For the Himachal agreement, commissioning is the central execution milestone because IndiGrid’s ownership is tied to post-commissioning acquisition. Management also said it would pursue greenfield and brownfield opportunities across transmission, BESS and renewables, with about Rs 124,000 crore of active transmission and BESS bids in the market at the time of the call.

Conclusion

The EnerGrid agreement provides IndiGrid with a defined Rs 6,650 crore Himachal transmission pipeline, led by the Rs 5,300 crore Shongtong hydro-evacuation project. The current quarter showed revenue growth from prior acquisitions, but Shongtong and Luhri are structured to affect the portfolio only after their respective commissioning milestones.

The next disclosed milestones are the acquisition of the two projects commissioned in Q2 FY27 in the coming weeks and months, the expected full restoration of the Sohna substation by May 2027, Shongtong’s commissioning in about three years, and Luhri’s expected commissioning in Q3 2030. Management’s Rs 16.48 FY27 DPU guidance and its plan to add almost Rs 2,000 crore of EnerGrid assets during FY27 are also stated targets to track.