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POWERGRID FY26: Execution-led capex cycle, growing pipeline, and a first step into storage

Power Grid Corporation of India Limited closed FY26 with a familiar mix of stability and scale. On a consolidated basis, total income was INR 47,684 crore versus INR 47,459 crore in FY25, while profit after tax rose 3% year-on-year to INR 15,928 crore. The operating story stayed anchored in reliability, with system availability reported at 99.84% in FY26.

The quarter and year also mattered for what they signaled about the next investment cycle. The company exceeded its own FY26 capex and capitalization commitments, and management provided fresh directional guidance for FY27 and FY28 that suggests higher run-rate spending. Alongside this, POWERGRID showcased technology-led execution, a maiden battery energy storage win, and the first international transmission PPP in Africa.

A business that is still mostly transmission, but with faster-growing adjacencies

FY26 consolidated income remained dominated by transmission charges. Transmission charges were INR 43,962 crore, essentially flat versus FY25 (INR 44,018 crore). Consultancy services stood out as a growth area: consolidated consultancy revenue rose to INR 1,755 crore from INR 798 crore. Telecom income was INR 1,015 crore versus INR 976 crore.

The company’s investor presentation also highlighted the breadth of its platform beyond traditional interstate assets. The works-in-hand disclosure includes an “Other Business” bucket that spans smart metering, data centres, cross-border and international opportunities, and battery energy storage. While these are small in value today, management’s commentary suggests they are intended as option value in a grid that is becoming more digital and more flexible.

Financial snapshot (Consolidated)

Execution and capitalization: the core catalyst for the next phase

The key FY26 takeaway was execution. POWERGRID added 4,765 km of transmission lines and 72,055 MVA of transformation capacity during the year. The investor deck also listed nine new substations commissioned and several 765 kV and 400 kV transmission lines that were energised.

Capex and capitalization beat the company’s internal commitments. Consolidated capex delivered was INR 39,967 crore against a committed INR 35,000 crore. Capitalization delivered was INR 28,206 crore against a committed INR 25,000 crore. For FY27, the company guided capex of INR 37,000 crore and capitalization of INR 30,000 crore.

In the investor meet Q&A, management provided additional direction on the medium term. It indicated FY28 capex could be beyond INR 40,000 crore, in the INR 40,000 to 45,000 crore range, with capitalization expected to move to about INR 35,000 crore. Management also stated that earnings growth over the next three years is expected to be better than the previous three years, linking this to the execution and capitalization cycle.

The management commentary also addressed why quarterly patterns can look back-ended. Transmission projects do not align neatly with financial years, and commissioning can cluster due to project completion schedules as well as monsoon season, right-of-way issues, forest clearances, and supply-chain constraints.

Competitive position: high TBCB exposure and a deep pipeline

POWERGRID disclosed works in hand of about INR 1.70 lakh crore as of 31 March 2026, including CWIP of INR 47,980 crore. The mix is heavily skewed toward tariff-based competitive bidding: TBCB accounts for INR 1,37,370 crore (81%), RTM accounts for INR 28,931 crore (17%), and other businesses account for INR 4,217 crore (2%).

In FY26, the company won 9 out of 28 TBCB projects. It also cited a cumulative tariff market share of about 44% across all TBCB projects since inception.

The near-term bidding pipeline was disclosed at INR 1,10,604 crore approved cost, comprising INR 1,05,334 crore under bidding and INR 5,270 crore to be floated (as on 16 May 2026). The pipeline is largely inter-state in value terms, with management and the deck also pointing to increasing intra-state TBCB opportunities.

Technology, storage, and international expansion: building optionality

Technology remained a clear theme, with initiatives such as AI-based defect detection, drone patrolling, and condition monitoring cited as enablers for high availability and improving reliability metrics. The company highlighted Asia’s first transformer with synthetic ester oil commissioned at its HVDC Bhiwadi substation and India’s first insulated cross-arms at 400 kV to reduce right-of-way requirements.

A notable strategic addition was the maiden battery energy storage project win under TBCB. The project is a 150 MW / 300 MWh standalone BESS in Kalikiri, Andhra Pradesh, with an annual tariff of INR 29.52 crore and two full charge-discharge cycles per day. Management also discussed the 20 March 2026 CERC amendment enabling integrated energy storage systems to be developed by transmission service providers under a regulated approach, stating that internal actions and regional consultations have begun.

Internationally, POWERGRID disclosed its first transmission PPP in Kenya through a partnership with Africa50. The project cost is estimated at about USD 300 million, with the SPV (Mwanga Transmission Company) incorporated and equity split of 40% with POWERGRID and 60% with Africa50. Management also mentioned PPP-based opportunities in Uganda under a framework agreement involving Africa50 and Uganda Development Bank.

Takeaways for investors

FY26 reinforced POWERGRID’s core positioning as India’s transmission backbone while setting up the next growth leg through a higher capex cycle. Financials stayed stable, but delivery metrics exceeded guidance, and management’s forward guidance points to increasing capex and capitalization over the next two years.

The near-term visibility is supported by INR 1.7 lakh crore works in hand and an approved bidding pipeline of INR 1.106 lakh crore. At the same time, the company’s narrative is expanding beyond wires and substations toward storage, digital reliability, and select international PPP opportunities. The next few years will likely be shaped by how quickly capitalization translates into revenue and how effectively execution risks such as right-of-way and equipment lead times are managed. */