tiprankstipranks
Trending News
More News >
Power Grid Corporation of India Limited (IN:POWERGRID)
:POWERGRID
India Market
Advertisement

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

Compare
14 Followers

Top Page

IN:POWERGRID

Power Grid Corporation of India Limited

(POWERGRID)

Select Model
Select Model
Select Model
Outperform 74 (OpenAI - 4o)
Rating:74Outperform
Price Target:
₹322.00
▲(11.59% Upside)
Power Grid Corporation's overall stock score is driven by its strong financial performance and stable valuation. The company's robust cash flow and profitability provide a solid foundation, while technical indicators suggest a stable market position. The fair valuation and attractive dividend yield further support the stock's appeal.

Power Grid Corporation of India Limited (POWERGRID) vs. iShares MSCI India ETF (INDA)

Power Grid Corporation of India Limited Business Overview & Revenue Model

Company DescriptionPower 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 MoneyPOWERGRID 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 cash flow generation. The income statement shows effective cost management, and the balance sheet reflects financial stability despite significant debt. The cash flow statement highlights efficient capital expenditure management and high-quality earnings.
Income Statement
78
Positive
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
75
Positive
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
82
Very Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue459.82B457.92B458.43B456.03B416.22B396.40B
Gross Profit449.50B447.60B449.15B447.80B407.92B388.78B
EBITDA393.04B396.00B402.17B401.77B369.73B358.17B
Net Income154.28B155.21B155.73B154.20B168.24B120.36B
Balance Sheet
Total Assets0.002.66T2.51T2.50T2.51T2.56T
Cash, Cash Equivalents and Short-Term Investments100.77B100.77B60.56B97.69B50.20B52.06B
Total Debt0.001.35T1.27T1.29T1.35T1.47T
Total Liabilities-926.63B1.73T1.64T1.69T1.75T1.86T
Stockholders Equity926.63B926.63B871.45B830.15B762.47B699.36B
Cash Flow
Free Cash Flow0.00120.89B258.86B311.02B181.57B199.49B
Operating Cash Flow0.00362.23B372.89B380.05B261.24B293.12B
Investing Cash Flow0.00-235.33B-131.14B-71.38B7.53B-89.73B
Financing Cash Flow0.00-123.57B-259.03B-304.50B-289.67B-205.21B

Power Grid Corporation of India Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price288.55
Price Trends
50DMA
285.80
Positive
100DMA
288.80
Negative
200DMA
287.75
Positive
Market Momentum
MACD
0.95
Negative
RSI
51.90
Neutral
STOCH
52.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:POWERGRID, the sentiment is Neutral. The current price of 288.55 is above the 20-day moving average (MA) of 286.78, above the 50-day MA of 285.80, and above the 200-day MA of 287.75, indicating a bullish trend. The MACD of 0.95 indicates Negative momentum. The RSI at 51.90 is Neutral, neither overbought nor oversold. The STOCH value of 52.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:POWERGRID.

Power Grid Corporation of India Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
₹2.68T17.463.12%0.40%-1.73%
72
Outperform
₹660.84B23.711.43%-2.95%16.18%
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
65
Neutral
₹869.90B28.502.25%13.90%-15.41%
65
Neutral
₹1.28T31.300.57%4.23%9.91%
64
Neutral
₹350.73B50.831.64%12.40%-30.77%
62
Neutral
₹719.84B94.100.10%36.83%166.22%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:POWERGRID
Power Grid Corporation of India Limited
288.55
-20.05
-6.50%
IN:GVT&D
GE Vernova T&D India Limited
2,905.20
1,258.02
76.37%
IN:NHPC
NHPC Limited
84.80
7.78
10.10%
IN:SJVN
SJVN Limited
88.96
-18.25
-17.02%
IN:TATAPOWER
Tata Power Company Limited
397.40
-25.91
-6.12%
IN:TORNTPOWER
Torrent Power Limited
1,325.60
-477.29
-26.47%

Power Grid Corporation of India Limited Corporate Events

Power Grid Corporation Acquires Vindhyachal Varanasi Transmission Limited
Oct 16, 2025

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.

Power Grid Corporation Acquires Mandsaur I RE Transmission Limited
Oct 8, 2025

Power Grid Corporation of India Limited has acquired Mandsaur I RE Transmission Limited through a tariff-based competitive bidding process. This acquisition, valued at approximately Rs. 7.30 Crore, involves the augmentation of transformation capacity and implementation of line bays at the Mandsaur substation in Madhya Pradesh, enhancing Power Grid’s operational capabilities and market presence in power transmission.

Power Grid Corporation Secures Investment for Key Infrastructure Projects
Sep 26, 2025

Power Grid Corporation of India Limited has received investment approval from its Committee of Directors for two significant projects. The first project involves the implementation of a VOIP Communication system for grid operations across all five regions in India, with an estimated cost of ₹209.68 crore and a completion target of August 2026. The second project focuses on enhancing disaster preparedness of transmission infrastructure through the procurement of Emergency Restoration Systems, costing ₹495.83 crore, expected to be completed by April 2027. These initiatives are poised to strengthen the company’s operational capabilities and enhance its infrastructure resilience.

Power Grid Corporation Appoints New Statutory Auditors for FY 2025-26
Sep 10, 2025

Power Grid Corporation of India Limited has announced the appointment of new statutory auditors for the financial year 2025-26, as conveyed by the Comptroller and Auditor General of India. The appointment of these auditors is significant for ensuring compliance with the Companies Act, 2013, and maintaining transparency in financial reporting, which is crucial for stakeholders and the company’s operations.

Power Grid Announces Senior Management Changes Due to Superannuation
Aug 31, 2025

Power Grid Corporation of India Limited announced the cessation of three Executive Directors, Shri A Sensarma, Shri Thiruchitrambalam Krishnakumar, and Shri Vikram Singh Bhal, due to their superannuation as of August 31, 2025. This change in senior management is part of the company’s adherence to regulatory requirements, and it may impact the company’s operational dynamics and leadership structure.

POWERGRID Wins Bid for Key Transmission Project
Aug 27, 2025

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, aimed at strengthening the transmission system at Davanagere for the integration of renewable energy generation, will be executed on a Build, Own, Operate and Transfer (BOOT) basis. The successful bid and subsequent project development are expected to enhance POWERGRID’s operational capabilities and reinforce its position in the energy transmission industry.

Power Grid Corporation’s AGM Resolutions Approved
Aug 27, 2025

Power Grid Corporation of India Limited announced that the resolutions proposed at its 36th Annual General Meeting held on August 26, 2025, were approved by the requisite majority. The meeting was conducted via video conferencing, and the voting results along with the scrutinizer’s report are available on the company’s website. This approval signifies continued support from stakeholders, reinforcing the company’s strategic direction and operational stability.

Power Grid Corporation Announces 36th AGM and Leadership Appointments
Aug 3, 2025

Power Grid Corporation of India Limited has announced its 36th Annual General Meeting (AGM) scheduled for August 26, 2025, to be conducted via video conferencing. The AGM will address ordinary business matters such as the adoption of financial statements, dividend declarations, and director appointments. Additionally, special business includes the appointment of new directors, including a Whole-time Director and a Government Nominee Director. This meeting is crucial for stakeholders as it outlines the company’s financial performance and strategic leadership appointments, impacting its operational and governance structure.

Power Grid Corporation Hosts Analysts and Investors Meet to Discuss Q1 Financials
Aug 2, 2025

Power Grid Corporation of India Limited recently held an Analysts’ and Institutional Investors’ Meet in Mumbai on August 1, 2025. During the meeting, the senior management team discussed the company’s business outlook following the release of its financial results for the first quarter of FY 2025-26. This event provided an opportunity for analysts and investors to interact with the company’s leadership, potentially impacting stakeholder confidence and market positioning.

Power Grid Corporation Schedules Investor Presentation for August 2025
Aug 1, 2025

Power Grid Corporation of India Limited has announced an Investor Presentation scheduled for August 1, 2025, in Mumbai. This presentation is part of their ongoing communication efforts with investors and analysts, highlighting the company’s commitment to transparency and engagement with stakeholders. The meeting is expected to provide insights into the company’s operations and future strategies, potentially impacting its market positioning and investor relations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 15, 2025