Power Grid Corporation of India Limited (POWERGRID) AI Stock Analysis

• Market Cap: ₹2.40T
• Dividend Yield: 3.37%
• Average Volume (3M): 668.98K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.08
• Revenue Growth: 0.80%
• EPS Growth: -3.25%
• Country: IN
• Employees: 8,316
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 3.80
• Shares Outstanding: 9,300,604,000
• 10 Day Avg. Volume: 1,066,787
• 30 Day Avg. Volume: 668,976
• PEG Ratio: -58.03
• Price to Book (P/B): 2.90
• Price to Sales (P/S): 5.88
• P/FCF Ratio: 22.25
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹312.00
• Price Target Upside: 15.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ₹320.00 ▲(18.06% Upside)

Power Grid Corporation's overall stock score is driven by its strong financial performance and balanced valuation. The company's robust cash flow and profitability support its financial health, while technical analysis suggests a stable market position. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Business Model Strength

POWERGRID's business model is robust due to its regulated revenue stream from transmission charges, ensuring stable income and return on investment.

Cash Generation Ability

Strong cash generation supports operational stability and debt servicing, indicating high-quality earnings and efficient capital management.

Profitability and Margins

High profitability and stable margins demonstrate effective cost management and operational efficiency, supporting long-term financial health.

Negative Factors

Revenue Growth Trends

Modest revenue growth may limit expansion opportunities, reflecting the mature nature of the industry and potentially impacting future growth prospects.

Debt Levels

High debt levels, while typical for the industry, can pose risks if not managed carefully, potentially affecting financial flexibility and stability.

EPS Growth

Negative EPS growth indicates challenges in improving profitability, which could impact investor confidence and long-term earnings potential.

Power Grid Corporation of India Limited Business Overview & Revenue Model

Company Description

Power Grid Corporation of India Limited, an electric power transmission utility, engages in the transmission of power in India. It operates in three segments: Transmission Services, Telecom Services, and Consultancy Services. As of March 31, 2022, the company owned and operated 1,72,437 circuit kms of transmission lines, as well as 265 substations with transformation capacity of 4,74,457 mega volt ampere. It also provides consultancy services, including power system planning and techno-economic feasibility studies; environmental and social impact assessment; design and engineering; procurement assistance; project management and construction supervision; asset management; and other services, such as owners' and lenders' engineer service; grid code and tariff mechanisms preparation; legal and technical advisory; and market analysis advisory services, as well as renewable energy certificate mechanism implementation. The company offers its consultancy services to firms, utilities, government departments, and IFIs in Afghanistan, Bangladesh, Kenya, Ethiopia, the United Arab Emirates, Nepal, Bhutan, Myanmar, Kyrgyzstan, Tajikistan, and Pakistan. In addition, it provides overhead optic fiber network services using optical ground wire on power transmission lines under the POWERTEL brand name; and operates EV charging stations. The company was formerly known as National Power Transmission Corporation Limited and changed its name to Power Grid Corporation of India Limited in October 1992. Power Grid Corporation of India Limited was incorporated in 1989 and is based in Gurugram, India.

How the Company Makes Money

POWERGRID generates revenue primarily through the transmission of electricity. The company earns a significant portion of its income from 'Transmission Charges' levied on electricity utilities for the use of its transmission networks. These charges are regulated by the Central Electricity Regulatory Commission (CERC) and are based on a cost-plus model, ensuring a return on investment for infrastructure development. Additionally, POWERGRID generates revenue through various ancillary services, including consultancy and project management services for power projects, as well as telecommunication services provided through its extensive fiber optic network. The company also engages in joint ventures and partnerships for infrastructure development, which can create additional revenue streams. Factors contributing to POWERGRID's earnings include increasing power demand in India, government initiatives for infrastructure development, and investments in renewable energy transmission.

Power Grid Corporation of India Limited Financial Statement Overview

Summary

Power Grid Corporation's financial performance is strong, with high profitability and stable growth. The income statement shows impressive margins, and the balance sheet reflects financial stability despite significant debt. Cash flow is robust, supporting operations and debt servicing effectively.

Income Statement

Power Grid Corporation's income statement reflects strong profitability and stable growth. The gross profit margin is notably high due to the nature of the regulated electric industry, ensuring stable revenues. The net profit margin and EBIT margin are also impressive, indicating effective cost management and operational efficiency. However, the revenue growth rate has been modest, which is typical for a mature industry but slightly limits the score.

Balance Sheet

The balance sheet shows a healthy equity base and a reasonable debt-to-equity ratio, indicating financial stability. Stockholders' equity has been increasing, reflecting retained earnings and potential reinvestment into the business. However, total debt remains significant, which is common in capital-intensive industries like utilities but represents a potential risk if not managed carefully.

Cash Flow

The cash flow statement is robust, with strong operating cash flow consistently exceeding net income, indicating high-quality earnings. The free cash flow to net income ratio is favorable, highlighting efficient capital expenditure management. The free cash flow growth rate has been volatile, but the company maintains positive free cash flow, supporting operations and debt servicing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	459.82B	457.92B	458.43B	456.03B	416.22B	396.40B
Gross Profit	449.50B	447.60B	449.15B	447.80B	407.92B	388.78B
EBITDA	393.04B	396.00B	402.17B	401.77B	369.73B	358.17B
Net Income	154.28B	155.21B	155.73B	154.20B	168.24B	120.36B
Balance Sheet
Total Assets	0.00	2.66T	2.51T	2.50T	2.51T	2.56T
Cash, Cash Equivalents and Short-Term Investments	100.77B	100.77B	60.56B	97.69B	50.20B	52.06B
Total Debt	0.00	1.35T	1.27T	1.32T	1.35T	1.47T
Total Liabilities	-926.63B	1.73T	1.64T	1.69T	1.75T	1.86T
Stockholders Equity	926.63B	926.63B	871.45B	830.15B	762.47B	699.36B
Cash Flow
Free Cash Flow	0.00	120.89B	258.86B	311.02B	181.57B	199.49B
Operating Cash Flow	0.00	362.23B	372.89B	380.05B	261.24B	293.12B
Investing Cash Flow	0.00	-235.33B	-131.14B	-71.38B	7.53B	-89.73B
Financing Cash Flow	0.00	-123.57B	-259.03B	-304.50B	-289.67B	-205.21B

Power Grid Corporation of India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 271.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:POWERGRID, the sentiment is Negative. The current price of 271.05 is above the 20-day moving average (MA) of 263.30, above the 50-day MA of 266.68, and below the 200-day MA of 281.79, indicating a bearish trend. The MACD of -2.55 indicates Positive momentum. The RSI at 36.82 is Neutral, neither overbought nor oversold. The STOCH value of 19.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:POWERGRID.

Power Grid Corporation of India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TORNTPOWER	75 Outperform	₹677.60B	22.54	―	1.48%	-1.26%	27.83%
POWERGRID	72 Outperform	₹2.40T	15.80	―	3.37%	0.80%	-3.25%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
NHPC	65 Neutral	₹816.86B	25.76	―	2.44%	15.72%	6.45%
TATAPOWER	65 Neutral	₹1.17T	28.97	―	0.59%	4.06%	8.22%
GVT&D	59 Neutral	₹716.07B	77.85	―	0.10%	33.42%	132.99%
SJVN	55 Neutral	₹309.20B	55.53	―	1.94%	6.92%	-44.22%

Power Grid Corporation of India Limited Corporate Events

Power Grid Board Clears Merger of 13 Wholly Owned Subsidiaries to Streamline Structure

Power Grid Corporation of India Limited’s board has approved a merger and amalgamation scheme involving 13 wholly owned subsidiaries, under which 11 subsidiaries will be consolidated into two remaining wholly owned subsidiaries, subject to statutory and regulatory approvals. The move is aimed at creating larger unified entities, reducing the number of group companies, and achieving operational, managerial and administrative efficiencies through a simplified organisational structure, which is expected to streamline governance and improve overall group management.

Power Grid Corporation Wins Bid for Major Transmission Project

Power Grid Corporation of India Limited has been declared the successful bidder under the Tariff Based Competitive Bidding (TBCB) process to establish an Inter-State Transmission System. This project, titled ‘Inter-Regional Strengthening between SR Grid and ER Grid,’ will be executed on a Build, Own, Operate and Transfer (BOOT) basis, involving the construction of 765 kV D/c transmission lines in Odisha and Andhra Pradesh. This achievement is expected to enhance the company’s operational capacity and strengthen its position in the energy transmission sector, potentially benefiting stakeholders by improving energy distribution efficiency.

Power Grid Corporation Acquires Vindhyachal Varanasi Transmission Limited

Power Grid Corporation of India Limited has successfully acquired Vindhyachal Varanasi Transmission Limited (VVTL) under the Tariff Based Competitive Bidding (TBCB) route. This acquisition, valued at approximately Rs. 19.84 crore, includes the establishment of a new 765 kV sub-station in Prayagraj and transmission lines in Uttar Pradesh and Madhya Pradesh. The acquisition is expected to enhance Power Grid’s operational capacity and strengthen the inter-regional transmission system, which is crucial for relieving the load on existing lines and ensuring reliable power distribution.