Power Grid of India (POWERGRID) investor relations material

Strategic Outlook and Growth Plans

• Multi-year CapEx guidance raised, with FY2025-26 CapEx now at over INR 35,000 crore, and future years projected to exceed INR 37,000 crore and INR 45,000 crore, with a sharp increase to INR 82,000 crore by FY2028.

• Capitalization targets for FY2025-26 set above INR 25,000 crore, with future years at INR 30,000 crore and INR 35,000 crore, and a projected INR 65,000 crore in the next two years.

• Transmission opportunity visibility estimated at INR 8–15 trillion by 2035, including international projects and major initiatives like One Sun, One World, One Grid.

• Robust project pipeline supported by government policy, with a focus on renewable energy integration and grid modernization.

• Ongoing SPV consolidation to streamline governance, with plans to merge 28 subsidiaries into two, aiming for improved administrative efficiency.

Execution Capabilities and Operational Excellence

• Execution capacity has quadrupled in three years, with CapEx rising from INR 8,000–9,000 crore to INR 35,000 crore.

• Achieved network availability above 99.8% and reduced annual tripping per line through digital and AI-based maintenance.

• Commissioned 4,239 ckm of transmission lines and 60,370 MVA transformation capacity in FY26.

• Project commissioning timelines now realistically set at 30–36 months, reflecting lessons from past delays.

• RoW (Right of Way) issues have been reduced through revised compensation guidelines and dedicated teams, improving project timelines.

Financial Performance and Shareholder Value

• Market capitalization and share price have grown 2.5x from 2021 to 2026, with dividend yield rising to 3–4%.

• Over INR 50,000 crore in dividends paid in the last five years, with strong institutional investor participation.

• Sufficient internal accruals and profits projected to meet equity requirements for future CapEx, with no anticipated funding constraints.

• Maintains a predominantly regulated asset base with increasing TBCB annuity revenues.

• Strong balance sheet and consistent dividend visibility support long-term value creation.