Power Grid wins TBCB ISTS LoI; stock up 0.6%

Stock ticks up after project award disclosure

Power Grid Corporation of India (POWERGRID) shares traded marginally higher on July 10, 2026 after the company disclosed that it has been declared the successful bidder for a new inter-state transmission system (ISTS) project under the Tariff Based Competitive Bidding (TBCB) framework. The announcement was made through exchange filings, and the company said it has already received the Letter of Intent (LoI), a key step that clears the way for project execution to move forward.

On the BSE, Power Grid was quoted at Rs 282.35, up 0.43% from the previous close of Rs 281.15. Intraday, the stock opened at Rs 283.00 and moved between Rs 281.40 and Rs 283.80. Another trading snapshot cited the stock at Rs 282.95 at 1:25 pm on July 10, up 0.57%.

What POWERGRID won under the TBCB route

POWERGRID said it has been declared the successful bidder to establish an ISTS for the project titled “Augmentation at Bhadla-III, Ramgarh PS and Kanpur (PG)”. The project will be implemented on a build, own, operate and transfer (BOOT) basis.

As per the disclosure, the scope comprises augmentation and bay extension works at the following substations:

• Bhadla-III S/S (Rajasthan)
• Ramgarh S/S (Rajasthan)
• Kanpur S/S (Uttar Pradesh)

The company said the LoI was received on July 09, 2026, according to an exchange filing dated July 9, 2026.

Why the LoI matters for project execution

In TBCB projects, the LoI typically marks the stage where the winning bidder has formal confirmation of the award, allowing the next steps of project development to proceed. In this case, the disclosure indicates that POWERGRID is set to execute substation augmentation and bay extension works across two states, Rajasthan and Uttar Pradesh.

The BOOT structure means the developer builds, owns, and operates the asset for a defined period before transferring it, aligning incentives around timely construction and sustained performance. The company’s statement does not provide financial details for this specific project in the information shared.

Market data and trading range in focus

The stock’s move remained modest despite the project win. POWERGRID is part of the BSE Group 'A' segment and has a face value of Rs 10. Over the past year, the stock has traded between Rs 250.05 (52-week low on 02-Feb-2026) and Rs 324.80 (52-week high on 27-Apr-2026).

In the last week, the scrip’s high and low were reported at Rs 287.95 and Rs 279.30, respectively. The report also noted that the stock was trading 13.44% below its 52-week high and 12.44% above its 52-week low at the time of publication.

Key facts at a glance

How this fits into POWERGRID’s recent TBCB wins

The July 2026 LoI adds to a series of transmission-related awards referenced in the provided disclosures, where POWERGRID has been winning projects under the TBCB route across regions and voltage levels.

Among the cited wins are projects aimed at renewable energy integration and grid strengthening. One such project referenced is titled “Transmission System Strengthening at Tumkur-II for Integration of Additional RE Potential (2.7 GW)” under TBCB, involving an ISTS in Karnataka. Another cited award relates to an intra-state project in Maharashtra titled “Network Expansion Scheme in Maharashtra for Removal of Transmission Constraints in Pune Region-I (765/400 kV AIS Pune East)”.

Separately, the company was also declared the successful bidder for an ISTS project titled “Inter-Regional Strengthening between southern region (SR) Grid and eastern region (ER) Grid”, under TBCB and on a BOOT basis. The scope cited includes 765 kV double-circuit transmission lines traversing Odisha and Andhra Pradesh, along with associated line bays and reactor works at both ends.

Other disclosures referenced by the market

The broader set of notes also referenced a renewable integration project titled “Transmission system strengthening for integration of additional RE potential at Davanagere (0.25 GW) and Bellary (2.75 GW)”, awarded through TBCB and to be developed on a BOOT basis, with an estimated capital cost of Rs 1,111 crore.

In addition, one separate market note mentioned that Power Grid shares rallied after the PSU raised its FY26 capex guidance to Rs 32,000 crore and increased capitalisation targets. That disclosure was referenced alongside investor attention to recent results and trading levels, although those details were not linked directly to the July 09 LoI.

Market impact and what investors tracked

The immediate market impact, based on the trading data cited, was a mild uptick in the share price around the announcement window. Investors also tracked the stock’s position relative to its 52-week band and the recent weekly trading range, as well as the company’s market capitalisation as cited in the report.

For the sector, the award underscores ongoing activity in substation augmentation and inter-state grid upgrades. The disclosed scope is focused on bay extension and augmentation works across key substations in Rajasthan and Uttar Pradesh, which are relevant nodes in interstate power movement and system reliability.

Conclusion

POWERGRID’s July 09, 2026 LoI for the Bhadla-III, Ramgarh PS and Kanpur (PG) augmentation project keeps the PSU in focus as it continues to secure transmission mandates under the TBCB framework on a BOOT basis. The next confirmed step on record is the LoI receipt, which typically precedes project development milestones and further regulatory and implementation processes as per the tender framework.