Power Grid: Strong Capex Pipeline & Long-Term Growth Visibility

Key Highlights • ~84% share in India’s ISTS transmission network • Massive capex plan of ~₹82,000 Cr for FY27–FY28 • Long-term opportunity estimated at ₹15 trillion+ • Strong order book of ₹1.48 lakh crore+ ensuring execution visibility Operational Strength • FY26 commissioning: – 4,239 ckm transmission lines – 60,370 MVA capacity added – 8 substations commissioned Financial & Structural Drivers • Delivered ~2.5x market cap growth with 3–4% dividend yield (FY21–FY26) • Growth supported by: – Rising power demand – Renewable energy expansion – Increasing grid complexity Why It Matters PowerGrid benefits from regulated returns and long-term projects, offering stable earnings visibility with growth from capex expansion. Learning Outcome In utility companies, capex pipeline and regulated return models provide predictable cash flows. Investors should track project pipeline, execution pace, and return ratios.