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Power Grid Corporation — Q3 FY25
PowerGrid reported consolidated Q3 FY25 total income of INR 11,743 crore and PAT of INR 3,862 crore.
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PowerGrid reported consolidated Q3 FY25 total income of INR 11,743 crore and PAT of INR 3,862 crore. Revenue growth was muted due to the regulated tariff structure where interest income declines as assets depreciate, though PAT remains stable due to return on equity. The company has a strong order book of INR 1.47 lakh crore and guided for FY25 CapEx of INR 23,000 crore and capitalization of INR 18,000 crore. Management expects CapEx to rise to INR 28,000-30,000 crore in FY26 and INR 35,000 crore in FY27, driven by HVDC projects like Khavda-Nagpur and Pang-Leh. The company won INR 19,828 crore of projects in Q3 and INR 63,909 crore in 9M FY25, maintaining a 50% market share in TBCB tariff-based projects. Risks include execution delays due to land acquisition and equipment supply constraints, and the impact of CERC tariff true-up (INR 140 crore in Q3) on profitability.
पावरग्रिड ने तीसरी तिमाही में कुल आय ₹11,743 करोड़ और शुद्ध लाभ ₹3,862 करोड़ दर्ज किया। कमाई में बढ़ोतरी सीमित रही क्योंकि नियंत्रित टैरिफ व्यवस्था में संपत्ति पुरानी होने पर ब्याज आय घटती है, लेकिन इक्विटी पर रिटर्न के कारण मुनाफा स्थिर रहता है। कंपनी के पास ₹1.47 लाख करोड़ का मजबूत ऑर्डर बुक है। उसने चालू वित्त वर्ष में ₹23,000 करोड़ पूंजीगत खर्च और ₹18,000 करोड़ पूंजीकरण का अनुमान लगाया है। प्रबंधन को अगले वित्त वर्ष में खर्च बढ़कर ₹28,000-30,000 करोड़ और उसके बाद ₹35,000 करोड़ होने की उम्मीद है, जो खावड़ा-नागपुर और पांग-लेह जैसी एचवीडीसी परियोजनाओं से आएगा। कंपनी ने तीसरी तिमाही में ₹19,828 करोड़ और नौ महीने में ₹63,909 करोड़ के प्रोजेक्ट जीते, जिससे टैरिफ-आधारित बोली में 50% हिस्सेदारी बनी रही। जोखिमों में जमीन अधिग्रहण और उपकरण आपूर्ति में देरी, और सीईआरसी टैरिफ समायोजन (₹140 करोड़) का मुनाफे पर असर शामिल है।
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Execution delays due to land acquisition and equipment supply
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Projects won in Q3 FY25 (cost)
INR 19,828 crore
+19% QoQ
PowerGrid won 7 ISTS TBCB projects in Q3, including Rajasthan RE evacuation and Kudankulam transmission.
Projects won in 9M FY25 (cost)
INR 63,909 crore
+50% YoY
Cumulative project wins in 9M FY25, reflecting strong pipeline and market share.
Market share in TBCB projects (tariff)
50%
flat YoY
PowerGrid maintained 50% share in annual tariff awarded via TBCB route in 9M FY25.
Transmission system availability
99.81%
+6bps YoY
Availability improved slightly, maintaining world-class operational reliability.
What Changed vs Last Quarter
UPDATED
FY25 CapEx target of INR 23,000 crore
Management reiterated the FY25 CapEx plan of INR 23,000 crore, with INR 19,480 crore already spent by January 31, 2025.
UPDATED
FY25 capitalization target of INR 18,000 crore
Capitalization target for FY25 is INR 18,000 crore, with INR 7,906 crore achieved by January 31, 2025. Management expects to commission ~INR 10,000 crore in the remaining 45-50 days.
UPDATED
FY26 CapEx guidance of INR 28,000-30,000 crore
For FY26, CapEx is expected to be in the range of INR 28,000-30,000 crore, driven by the strong project pipeline.
UPDATED
FY27 CapEx guidance of INR 35,000 crore
For FY27, CapEx is expected to be around INR 35,000 crore, with potential upside from additional HVDC projects.
DROPPED
Capitalization to reach INR 35,000-40,000 crore in 2-3 years
Capitalization is expected to ramp up to INR 35,000-40,000 crore per annum as projects are commissioned.
DROPPED
Target win rate of ~50% in TBCB projects
Management expects to win about 50% of upcoming TBCB projects, translating to INR 192,000 crore additional orders by 2032.
NEW RISK
Execution delays due to land acquisition and equipment supply
Management acknowledged challenges in land acquisition (ROW issues) and supply of high-voltage transformers and GIS equipment, which could delay project commissioning beyond the typical two-year timeline.
NEW RISK
Impact of CERC tariff true-up on profitability
The CERC tariff true-up impacted Q3 PAT by INR 140 crore, and the nine-month impact is ~INR 440 crore. This regulatory adjustment could continue to weigh on earnings.
NEW RISK
Loss from JV EESL dragging consolidated profits
PowerGrid's 39% stake in EESL resulted in a loss of INR 140 crore in 9M FY25, contributing to the decline in consolidated PAT. Management has stopped further equity infusion.
NEW RISK
Dividend reduction due to rising CapEx requirements
Management reduced the interim dividend per share (from INR 4.5 to INR 3.25) to conserve equity for the growing CapEx pipeline. Further reductions are possible if CapEx continues to rise.
RISK GONE
EESL associate losses continue
EESL contributed a loss of INR 100 crore in H1 FY25 due to mounting receivables and interest costs, with no clear timeline for reversal.
RISK GONE
O&M cost reduction under new CERC regulation
New CERC tariff regulation (2024-29) reduced O&M charges by INR 600 crore annually, impacting profitability by ~INR 300 crore in H1.
RISK GONE
Declining RTM revenue offsets TBCB gains
Revenue from legacy RTM projects is declining due to lower depreciation and interest, partially offsetting growth from new TBCB projects.
RISK GONE
Competitive pressure in TBCB bidding
Analyst raised concern about potential ROE compression in TBCB projects due to competitive bidding, though management downplayed the risk.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q2 FY24, Q3 FY24
Management acknowledged that transformers, reactors, and GIS are in tight supply, with costs rising 70-80% since 2017-18, potentially delaying projects.
Mentioned in Q1 FY25, Q4 FY24
Over INR 100,000 crore of transmission projects are in the pipeline, with 70-80% expected to be awarded in FY25.
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Guidance and risk preview
Management reiterated the FY25 CapEx plan of INR 23,000 crore, with INR 19,480 crore already spent by January 31, 2025.
Management acknowledged challenges in land acquisition (ROW issues) and supply of high-voltage transformers and GIS equipment, which could delay pr...
View Risks →