Power Grid Unveils Ambitious Multi-Year Capital Expenditure and Capitalization Plan

Power Grid Corporation of India Limited , a key player in the Indian power transmission sector, has announced its strategic capital expenditure (capex) and capitalization plans for the upcoming fiscal years, signaling a robust growth trajectory for the company.

Capex and Capitalization Projections

The company has provided a detailed outlook for its financial plans up to the fiscal year 2028. Here's a breakdown of Power Grid's projections:

Fiscal Year	Capital Expenditure (INR Crores)	Capitalization (INR Crores)
FY26	28,000 - 30,000	20,000
FY27	35,000	25,000 - 26,000
FY28	45,000	28,000

Key Highlights

Steady Increase in Capex: Power Grid's capital expenditure is set to grow significantly, from INR 28,000-30,000 crores in FY26 to INR 45,000 crores in FY28, indicating a strong focus on infrastructure development and expansion.
Capitalization Growth: The company plans to increase its capitalization from INR 20,000 crores in FY26 to INR 28,000 crores in FY28, suggesting a steady conversion of investments into operational assets.
Long-term Vision: By providing guidance up to FY28, Power Grid demonstrates a clear long-term strategy and confidence in its growth prospects.

Investor Communication

Power Grid continues to maintain transparency with its stakeholders. The company recently held a webinar for investors and analysts on November 4, 2025, to discuss its business outlook following the declaration of financial results for the quarter and half-year ended September 30, 2025. This proactive approach to investor relations aligns with the company's commitment to keeping the market informed about its strategic plans and financial performance.

The detailed capital expenditure and capitalization guidance provided by Power Grid offers valuable insights into the company's growth strategy and financial planning. As the power sector continues to evolve, Power Grid's substantial investment plans may position it to capitalize on emerging opportunities in India's energy infrastructure landscape.

Investors and analysts will likely keep a close watch on Power Grid's execution of these ambitious plans in the coming years, as they may have significant implications for the company's future performance and the broader power transmission sector in India.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.87%	-7.02%	-5.52%	-11.88%	-14.90%	+170.02%

Power Grid Corporation of India Limited (PowerGrid), India's flagship power transmission utility, has reported robust performance for H1 FY26 and unveiled an ambitious capital expenditure plan of ₹1.3 lakh crore over the next five years. This strategic investment aims to meet the rising power demand and support the integration of renewable energy into the national grid.

Financial Performance

According to PowerGrid's investor update:

Total income for H1 FY26: ₹23,115.00 crore
Profit after tax for H1 FY26: ₹7,197.00 crore

Operational Highlights

PowerGrid continues to maintain exceptional operational standards:

System availability of 99.83% up to H1 FY26
1,81,054 circuit kilometers of transmission lines
1,87,516 MVA transformation capacity
Commissioned 857 circuit kilometers of transmission lines and 30,555 MVA transformation capacity during the period

Record Works in Hand

PowerGrid has achieved a record works in hand of ₹1,52,287.00 crore, with Tariff Based Competitive Bidding (TBCB) works showing impressive 48% CAGR growth from FY20 to H1 FY26.

Major Developments

Successful testing of India's first insulated cross arms for 400kV lines
Launch of the country's first 220kV mobile GIS bay
In-principle approval received for Sasaram HVDC project upgradation at ₹3,440.00 crore cost

Financial Strength

PowerGrid maintains strong credit ratings:

AAA rating from domestic agencies
Investment grade ratings from international agencies
Debt-to-equity ratio: 58:42
Return on net worth: 7.27%

Investment Focus

The company's ₹1.3 lakh crore investment strategy centers on two key areas:

Digital Grid Modernization
Green Energy Corridors

These focus areas align with India's growing energy needs and the push towards a more sustainable power infrastructure.

Future Outlook

With its substantial capital investment plan and record works in hand, PowerGrid is positioning itself as a key player in India's evolving energy landscape. The focus on digital grid modernization and green energy corridors aligns with the country's renewable energy goals and the increasing demand for reliable power transmission.

As India moves towards its clean energy commitments, including over 600 GW of non-fossil fuel capacity by 2032, PowerGrid's investments are likely to play a crucial role in facilitating this transition.

The company's strong financial foundation, coupled with its operational excellence, provides a solid base for executing this ambitious plan. Investors and stakeholders will be watching closely to see how these investments translate into long-term value creation and support India's growing energy needs.