IndiGrid signs Rs 6,650 crore Himachal transmission project pipeline

IndiGrid Infrastructure Trust signed agreements in Q2 FY27 to acquire two EnerGrid transmission projects in Himachal Pradesh for a combined enterprise value of up to Rs 6,650 crore after commissioning, adding about 554 circuit kilometres of lines and 1,680 megavolt-amperes of transformation capacity. The projects have commercial operation targets of Q4 FY29 and Q3 FY30.

What is IndiGrid acquiring from EnerGrid?

IndiGrid has signed Securities Purchase Agreements to acquire Shongtong Power Transmission Limited and Luhri Power Transmission Limited from EnerGrid once each project is commissioned. EnerGrid is IndiGrid's development platform backed by British International Investment and Norfund, and the announced transactions concern projects being built in Himachal Pradesh.

Shongtong Power Transmission Limited has an enterprise value of up to Rs 5,300 crore and is designed with about 450 circuit kilometres of transmission lines and a 630 megavolt-amperes substation. The asset is intended to evacuate 600 megawatts of hydropower, making it the larger of the two proposed acquisitions by both value and line length.

Luhri Power Transmission Limited has an enterprise value of up to Rs 1,350 crore, about 104 circuit kilometres of lines and 1,050 megavolt-amperes of substation capacity. It is intended to evacuate power from the Sunni Dam and Luhri Stage-I hydroelectric projects, and its substation capacity exceeds Shongtong's 630 megavolt-amperes despite its smaller line network.

When are IndiGrid's two Himachal projects expected to operate?

IndiGrid expects Shongtong Power Transmission Limited to reach commercial operation date, or COD, in Q4 FY29, while Luhri Power Transmission Limited is expected to reach COD in Q3 FY30. The agreements therefore set out acquisitions after commissioning rather than an immediate addition of the two assets to IndiGrid's operating portfolio.

Both projects are being constructed in the Himalayan terrain of Himachal Pradesh, which IndiGrid describes as one of India's most technically demanding places to build transmission lines. Each was won through tariff-based competitive bidding and is structured on a build-own-operate-transfer, or BOOT, basis, according to the November 5, 2026 announcement.

The projects are backed by long-term transmission service agreements featuring availability-linked payments. That payment mechanism and the planned post-commissioning acquisition structure are the disclosed basis for the two-project pipeline, rather than a reported contribution from Shongtong or Luhri to Q2 FY27 revenue or cash flow.

How large is IndiGrid's EnerGrid acquisition pipeline?

Including the two Himachal projects, IndiGrid said EnerGrid's under-construction portfolio comprises eight transmission and battery energy storage system, or BESS, projects with a proposed acquisition value of about Rs 12,300 crore. The Rs 6,650 crore value of Shongtong and Luhri accounts for more than half of that disclosed proposed portfolio value.

IndiGrid expects to acquire about Rs 2,000 crore of EnerGrid assets during FY27, a financial year that precedes the Q4 FY29 and Q3 FY30 COD targets for the two new agreements. The company did not identify which EnerGrid assets make up the expected FY27 acquisitions or state an acquisition date for either Himachal project beyond their commissioning condition.

The two additions would contribute about 554 circuit kilometres and 1,680 megavolt-amperes to the portfolio described in the release. Across IndiGrid and EnerGrid, including under-construction projects, the stated portfolio spans 59 transmission lines of about 10,237 circuit kilometres, 20 substations with about 34,335 megavolt-amperes, about 1.5 gigawatt-peak of solar capacity and about 2.5 gigawatt-hours of storage.

What did IndiGrid report alongside the EnerGrid agreements?

IndiGrid reported net distributable cash flow, or NDCF, of Rs 380 crore in Q2 FY27, up 4.7% from Rs 363 crore in Q2 FY26. Operational revenue rose 8.4% year on year to Rs 872 crore and operational earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 7.9% to Rs 782 crore, producing an 89.7% margin.

Reported revenue grew 59.0% to Rs 1,315 crore in Q2 FY27 from Rs 827 crore a year earlier, while reported EBITDA increased 18.3% to Rs 858 crore from Rs 725 crore. IndiGrid said reported figures include service-concession accounting revenue from BOOT projects under construction, explaining why they differ from the operational measures.

During the quarter, IndiGrid commissioned Rajasthan BESS Private Limited, a 250 megawatt and 500 megawatt-hour standalone storage project in Rajasthan, and Ishanagar Power Transmission Limited in Madhya Pradesh. Ishanagar includes a 4,000 megavolt-amperes, 765/400/220 kilovolt substation and about 33 circuit kilometres of 765 kilovolt lines.

What is IndiGrid's current distribution and balance-sheet position?

IndiGrid's investment manager approved a distribution per unit, or DPU, of Rs 4.12 for Q2 FY27, compared with Rs 4.00 in Q2 FY26. The amount is in line with the company's FY27 DPU guidance of Rs 16.48 and represents its 38th consecutive quarterly distribution.

As of September 30, 2026, IndiGrid had assets under management, or AUM, of Rs 33,667 crore and net debt to AUM of 60.4%. Collection efficiency was 103% for transmission assets and 94% for solar assets, while receivable days were 37 for transmission and 35 for solar.

The Rs 4.12 distribution has a record date of November 11, 2026 and is payable on or before November 18, 2026. It comprises Rs 3.1878 per unit of interest and Rs 0.9322 per unit of capital repayment; since listing, IndiGrid has distributed about Rs 125.56 per unit, or about Rs 8,433 crore, over 38 quarters.

Conclusion

The agreements give IndiGrid a defined, long-dated route to acquire two Himalayan transmission assets with a combined potential value of up to Rs 6,650 crore. Shongtong supplies most of the 554 circuit kilometres of planned lines, while Luhri supplies the larger 1,050 megavolt-amperes substation capacity, extending the disclosed EnerGrid pipeline to about Rs 12,300 crore across eight under-construction projects.

The next disclosed milestones are IndiGrid's expected acquisition of about Rs 2,000 crore of EnerGrid assets in FY27, followed by Shongtong's targeted Q4 FY29 COD and Luhri's targeted Q3 FY30 COD. Investors can also watch the November 11, 2026 record date and payment on or before November 18, 2026 for the Rs 4.12 Q2 FY27 distribution.