Power Grid Capitalization Rises Sharply, FY26 Guidance Upgraded Amid Project Execution Gains
In Q3FY26, Power Grid's project capitalization soared to ₹9,023 crore, significantly surpassing market expectations. This increase is attributed to new government guidelines facilitating land acquisition and project execution. Consolidated Ebitda rose by approximately 6% year-on-year to ₹10,100 crore. The company revised its FY26 capex guidance to ₹32,000 crore and capitalization target to ₹22,000 crore. Despite facing challenges in transformer manufacturing capacity, Power Grid has plans for imports to meet requirements.
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Power Grid reported a substantial increase in project capitalization to ₹9,023 crore in Q3FY26, up from ₹3,900 crore in H1FY26, exceeding market expectations by 80-90%. This acceleration is linked to new government guidelines on right-of-way compensation, aiding project execution.
Consolidated Ebitda grew about 6% year-on-year to ₹10,100 crore, with adjusted revenue also rising nearly 6% to ₹11,900 crore. For FY26, capex guidance was increased to ₹32,000 crore, with a capitalization target raised to ₹22,000 crore.
The pipeline includes ₹55,000 crore in projects currently under bidding. However, challenges remain in domestic transformer manufacturing capacity, prompting Power Grid to seek government approval for component imports.
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