Power Grid order book expands to Rs 2.2 lakh crore on capex

Power Grid Corporation of India [

] expanded its unexecuted order book to Rs 2.2 lakh crore, driven by transmission expansion and the Green Energy Corridor Phase-III. The stock trades around 15 times FY28 estimated ***** order backlog surge follows major project wins like the Barmer HVDC transmission project and the Gujarat renewable energy integration scheme. Transmission spending is scaling up significantly to connect renewable generation assets to the national grid. Meanwhile, capitalisation improved sequentially to Rs 5,277 crore in the first quarter, signaling that projects are moving from the drawing board to actual physical execution. While headline numbers focus on total order inflows, the core variable for investors is execution velocity in the second half of fiscal 2027. Order books do not generate cash flow until assets are officially commissioned. Power Grid maintains a fiscal 2027 capex target of Rs 37,000 crore and a capitalisation target of Rs 30,000 crore. Meeting these specific milestones is essential to support its regulated return model and earnings growth. At current valuations, the projected dividend yield of 3.5 to 4 percent provides downside support while execution scales up. Watch for the pace of asset commissioning and execution reports in the upcoming quarters.