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Informist, Friday, Aug. 7, 2026

By Sunil Raghu and Adhithya Aji

AHMEDABAD/MUMBAI – Power Grid Corp. of India Ltd. has kept its plan to invest INR 370 billion in the current financial year to boost its power transmission infrastructure unchanged, a senior company official said Friday. This comes on the wake of having spent 10% more capex than estimated in the June quarter, Burra Vamsi Rama Mohan, chairman and managing director of Power Grid Corp., told sector analysts in a post-earnings call held on Friday. The company had announced its June quarter earnings late Thursday night.

The company spent INR 77.65 billion in capital expenditure during Apr-Jun, compared with INR 69.81 billion it spent in the June quarter a year ago. The company also retained its asset capitalisation guidance for 2026-27 (Apr-Mar) at INR 300 billion. Asset capitalisation is a key indicator of Power Grid's growth and expansion trajectory. This is the process of transferring completed infrastructure projects – such as transmission lines and substations – on to the company's balance sheet as revenue generating assets. "...this is almost 3.13 times than what we have achieved in the last quarter. So, as against INR 1,683 crore (INR 16.83 billion), we stand about 5,277 (INR 52.77 billion) as far as capitalization is concerned," Rama Mohan said.

According to Rama Mohan, Power Grid's total outlook for the sector looked "very vibrant", with long-term sectoral opportunity for Power Grid at over INR 15 trillion more. It already has projects worth INR 1.75 trillion in hand, including INR 1.46 trillion under Tariff-Based Competitive Bidding and INR 250 billion under Regulated Tariff Mechanism. It also has projects worth INR 42 billion from other business as smart metering and data centers. In addition, its bidding pipeline is also "very strong", at INR 1.19 trillion, with projects worth INR 738.75 billion already bid for, and bids for projects worth INR 450 billion being floated.

Rama Mohan said the strategic drivers powering of the transmission system investment cycle are the plans of the Central Electricity Authority and the power ministry's national electricity plan that seeks to anchor addition of 900 plus gigawatt by 2035-36 (Apr-Mar). This also entails investment to the tune of INR 7.9 trillion and the hydro potential in the northeast portion of Brahmaputra basin at about INR 6.4 trillion. The data centres too are emerging as one of the strongest intake for the transmission systems to evolve, at about 71 GW. "Based upon the traction what we are receiving, there is going to be continuous inflow of projects into the system. So the 7.9 lakh crore (INR 7.9 trillion) will be spread across maybe another three years or so because we need the systems by 2035-36," Rama Mohan added. 

The state-run power transmission company reported a net profit of INR 34.11 billion for the June quarter, down nearly 7% on-year from INR 36.53 billion. Power Grid's revenue for the quarter fell a little over 1% on year to INR 97.95 billion from INR 99.28 billion in the June quarter a year ago. As on Jun. 30, the company's debt stood at INR 1.46 trillion, compared with INR 1.31 trillion a year ago. "The capital work in progress from 41,000 to 50,000 crore (INR 410 billion-INR 510 billion) and the increase in debt an obvious indication of the growth path of the company," Rama Mohan said.

Sharing operational updates, Rama Mohan said that the company commissioned 1,635 circuit kilometers of transmission lines in Apr-Jun, taking its total to 186,595 circuit kilometers. The key transmission lines it added during the June quarter include 765 kilovolt KurnoolIII-Maheshwaram circuit 1 & 2, 765 kV Dausa-Beawar circuit 1 & 2, 400 kV New Navsari-Kala circuit 1 & 2, and 400 kV Kadapa-Anandthapuram circuit 1 & 2.

Power Grid also added 10,500 mega-volt ampere transformation capacity in the June quarter, taking its total to 634,516 MVA. It added transformers of varied capacity at Bikaner, Fatehgarh, Jabalpur and Aanathapuram, the company official said.

Commenting on the issue of non-availability of equipment to provide connectivity to upcoming power projects, especially renewables, Rama Mohan said the stress on transmission companies was relatively lesser. Over last few quarters, several power generation companies have pointed that they fail to get transmission connectivity for their expanded capacity on time. They allege that this delay has seen them slow down on adding newer capacity. "It would not be as bad as what it was before because the manufacturers are also now ready to take on the additional capacity requirements. So, there is ramping up capacity in the country as well," Rama Mohan said. Power Grid MD said that with government permitting Chinese equipment makers to re-start supply in to India would further help overcome any shortage.

Rama Mohan said that other than transmission segment, Power Grid has also begun exploring option of Battery Energy Storage System projects, as the regulator has recently come up with an amendment and transmission developer like PowerGrid can develop such project.

At 1407 IST, the company's shares traded at INR 269.95 on the National Stock Exchange, down 0.3%.  End

Edited by Akul Nishant Akhoury

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