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Power Grid Corporation — Q1 FY25
PowerGrid reported a steady Q1 FY25 with consolidated PAT of INR 3,724 crore (+3.5% YoY) and total income of INR 11,280 crore.
bullish
high
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PowerGrid reported a steady Q1 FY25 with consolidated PAT of INR 3,724 crore (+3.5% YoY) and total income of INR 11,280 crore. The company maintained transmission system availability at 99.80%, enabling maximum regulatory incentives. Key growth drivers include a strong order pipeline of INR 114,139 crore and winning 70% of TBCB projects by tariff in Q1 and July. Management raised FY25 CapEx guidance to INR 18,000 crore (from INR 15,000 crore) driven by new project wins. The outlook remains robust with a bidding pipeline exceeding INR 100,000 crore and plans to commission INR 70,000-80,000 crore of projects over the next 2-3 years. Risks include equipment supply constraints for transformers and GIS, and potential cost overruns on first-of-its-kind offshore wind and HVDC projects.
पावरग्रिड ने पहली तिमाही में 3,724 करोड़ रुपये का शुद्ध लाभ कमाया, जो पिछले साल से 3.5% ज़्यादा है। कंपनी ने 99.80% समय बिजली लाइनों को चालू रखा, जिससे सरकार से ज़्यादा प्रोत्साहन मिला। कंपनी के पास 1,14,139 करोड़ रुपये के नए प्रोजेक्ट का ऑर्डर है और उसने जुलाई तक 70% नए ट्रांसमिशन प्रोजेक्ट जीते। अब वह इस साल 18,000 करोड़ रुपये खर्च करेगी (पहले 15,000 करोड़ था)। आने वाले 2-3 सालों में 70,000-80,000 करोड़ रुपये के प्रोजेक्ट पूरे करने की योजना है। लेकिन ट्रांसफॉर्मर और स्विचगियर की कमी, और नए समुद्री पवन व एचवीडीसी प्रोजेक्टों में लागत बढ़ने का खतरा है।
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Equipment supply constraints for transformers and GIS
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Transmission System Availability
99.80%
Flat YoY
Maintained above 99.75% threshold, enabling maximum regulatory incentive.
TBCB Project Win Share (Tariff)
70%
+20pp YoY
Won INR 4,935 crore out of INR 7,045 crore total tariff in Q1 and July.
Work in Hand
INR 114,139 crore
+15% YoY
Includes RTM, TBCB, and other projects; provides strong revenue visibility.
Trippings per Line
0.09
-68% YoY
Improved from 0.28 in Q1 FY24; one line trips every 4 years on average.
What Changed vs Last Quarter
NEW
Data center Phase I commissioning in Q4 FY25
The 1,000-rack data center at Manesar is expected to be commercially available by Q4 FY25, with Phase II of INR 2,000 crore planned.
UPDATED
FY25 CapEx raised to INR 18,000 crore
Management increased CapEx guidance from INR 15,000 crore to INR 18,000 crore due to new project wins requiring spending this fiscal.
UPDATED
Capitalization target of INR 18,000 crore in FY25
Target to commission projects worth INR 18,000 crore in FY25, with INR 25,000-30,000 crore expected in each of FY26 and FY27.
UPDATED
Bidding pipeline of INR 100,000+ crore
Over INR 100,000 crore of transmission projects are in the pipeline, with 70-80% expected to be awarded in FY25.
DROPPED
Dividend payout to remain healthy
Management expects no reduction in dividend despite higher CapEx, citing sufficient cash flows from profits.
NEW RISK
Equipment supply constraints for transformers and GIS
Management acknowledged that transformers, reactors, and GIS are in tight supply, with costs rising 70-80% since 2017-18, potentially delaying projects.
NEW RISK
Cost overruns on first-of-its-kind offshore wind projects
The offshore wind evacuation projects (INR 13,100 crore total) are India's first, and management noted costs may be higher than routine projects, posing execution risk.
NEW RISK
Dividend dependency on SPVs impacting standalone profits
Analyst noted flattish standalone PAT due to lower dividends from SPVs; management confirmed this but said consolidated view is more relevant going forward.
NEW RISK
Green hydrogen transmission capacity not yet in NEP
Management could not confirm if the 125 GW RE requirement for green hydrogen is included in the National Electricity Plan, indicating potential policy uncertainty.
RISK GONE
TBCB annuity rate compression
Analyst noted a deteriorating trend in CapEx-to-annuity ratios for TBCB projects, which could pressure IRRs. Management acknowledged but maintained 10-12% IRR target.
RISK GONE
Smart metering execution delays
Management admitted smart metering progress is slow due to teething problems in software, with only 30,000 of 69,000 meters installed.
RISK GONE
Subsidiary profit decline due to one-offs
Consolidated subsidiary profits fell YoY partly due to a one-time INR 200 crore tariff order in Q4 FY23, which may not recur.
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Guidance and risk preview
Management increased CapEx guidance from INR 15,000 crore to INR 18,000 crore due to new project wins requiring spending this fiscal.
Management acknowledged that transformers, reactors, and GIS are in tight supply, with costs rising 70-80% since 2017-18, potentially delaying proj...
View Risks →