Powergrid FY26 Annual Earnings Summary

ROW issues remain a significant bottleneck for transmission line commissioning, especially in Delhi and Haryana, despite new compensation guidelines.

Transformer costs have doubled in seven years, and GIS bay costs have risen from INR 6 crore to INR 14-15 crore, impacting project costs.

ROW challenges from landowners have delayed project execution, though new government guidelines are expected to ease the process.

Domestic transformer capacity (228,000 MVA) is insufficient vs demand (421,000 MVA in FY27), potentially delaying projects unless Chinese component imports are allowed.

The Leh HVDC project faces delays due to technology challenges at high altitude; an alternative AC solution may be costlier and unproven in India.

Consolidated PAT fell ~2% YoY partly due to INR 70 crore loss from joint venture ESL, which management did not elaborate on further.

TBCB tendering has slowed down due to approval processes, which could impact future order inflows.

Shortage of transformers, GIS, and HVDC equipment with long lead times could affect project timelines.

As assets complete 12 years, depreciation and interest costs decline, reducing revenue by ~9% of project cost, which may pressure reported growth.

While new guidelines have helped, ROW remains a challenge in some states; execution depends on timely adoption by local authorities.

Two major HVDC projects (Barmer II-Srikakulam, Bikaner V-Begunia) may slip beyond FY27, impacting CapEx phasing.

Intrastate projects (e.g., Maharashtra, Karnataka) involve higher execution risks; management will bid selectively based on risk assessment.