Power Grid Corporation of India Ltd (NSE: POWERGRID) Q3 2026 Earnings Call dated Feb. 02, 2026
Corporate Participants:
Unidentified Speaker
Satyaprakash Dash — Company Secretary
R. K. Tyagi — Chairman and Managing Director
Khajkumar LK — Executive Director, Corporate Planning
Analysts:
Unidentified Participant
Murtuza Arsiwalla — Analyst
Shubadip Mitra — Analyst
Apoorva Bahadur — Analyst
Mohit Kumar — Analyst
Nikhil Nigania — Analyst
Sumit Kishore — Analyst
Puneet Gulati — Analyst
Prateek Jain — Analyst
Namit Arora — Analyst
Presentation:
Unidentified Speaker
Ladies and gentlemen, we start on behalf of Power Grid Corporation of India Ltd. We welcome you to the analyst and institutional investors meet organized to discuss the company’s business and outlook post the declaration of the unaudited financial results for the quarter ended 31 December and nine months ended 31 December. To introduce the dignitaries on the dais I call upon the company secretary Mr. Sathya Prakash Das to please do the honors.
Satyaprakash Dash — Company Secretary
Thank you Bakulji. Good morning everyone. I am pleased to welcome you to Power Grid Corporation of India Limited’s Analyst and institutional investors conference. Today our senior management is here and we’ll discuss about our company’s business and performance outlook based on our recently announced financial results. So let me introduce our esteemed senior management team. Dr. R.K. tyagi, chairman and Managing Director Sriji Ravi Sankar, Director Finance and CFO Dr. Atindra Dibadi, Director Personnel Sri Naveen Srivastava, Director Operations Sri Bhansi Ramamon, Director Projects we shall now watch a short corporate video on our power grids performance.
[Video Presentation]
Thank you. Now I would like to invite our chairman and Managing Director Dr. R.K. tyagi to deliver the opening remark and presentation. Following that we shall have the Q and A session. Sir, over to you sir.
R. K. Tyagi — Chairman and Managing Director
Good morning. Respected investors, my colleagues on the dais, all board members. Ladies and gentlemen, today’s investor meets. We will be sharing the achievements of power grid. What challenges we were facing last year. With the support of government of India, with the support of our stakeholders, we have been able to resolve many of the issues. And now our execution of projects.
Our performance is improving in all areas. Unlike last year wherein we had number of challenges in commissioning our projects. So I’ll be sharing the details during my presentation. My. Presentation will cover highlights, project execution, how we are operating our assets. Then financials for quarter three and for nine months. What we are doing in other businesses and what is a business outlook for power grid. How power grid is playing role in esg, CSR and different areas and awards. What we are winning. Key highlights. Power Grid has become 3 trillion rupees plus gross fixed asset company. It is a leading national transmission company not in India but in the world.
We are a backbone transmission company for supply of electricity from any corner of the country and to any other part of the country. Then second part is FY26 capex and capitalization it is on track. I can assure you that we are poised to exceed our annual guidance which we have been talking. We have entered in Africa50 with the partnership with the Africa50 in Kenya. Particularly 1,400kv and 220kv project we will be starting shortly considering energy storage in battery. So we have ventured into first battery energy storage project on Build on operate in Andhra Pradesh towards ESG we have recently commissioned first 400kV by 220kV 315 MVA transformers using synthetic stear oil which is a vegetable oil.
It is easily. It can be easily decomposed unlike mineral oil. So it is a step towards ESG or then earlier we had. In 2019 we had commissioned 400kV reactor also in between two transformers one at Aizwal and one at Pusoli we had retrofilled estor oil from mineral oil in renewable we have our power consumption we have achieved our target of 50% which we committed in front of you for by 2025 December we have achieved this target. As you know that power grid is a government of India major shareholding company 51.34% then FIIs about 24% domestic IIS 20% for 2425 Again like all the years last so many years we have been achieving MoU rating of Excellent by department Government of India Department of Public Enterprise As I told that gross fixed assets for the first time it has crossed 3 lakh trillion rupees our credit ratings as usual it has.
It is very good Excellent. These are power grid board members my team where we have functional directors, independent directors and government nominee directors and the lady director also we have which was for some time it was not there but for last 2 3/4 we have madam Sajal Jha as independent director. We have one of the largest transmission network in the World by any utility 1 83,174 Circuit kilometers with 1566 number of transmission line Our substations with the last commissioning of Ahmedabad then Anandpuram it has increased to 288 with the 505 99,000 MV capacity Inter Regional capacity that means power flow capacity from one region to another region it is one 1000 megawatt our the transmission system availability is 99.84%.
These are the details of various voltage level substations we have 18 HVDC Station 70 numbers of 765kV substations which is highest in the world by any utility. Then 400kV 169 and 400kV and below 31 numbers we have for grid stabilization SVC and Statcoms and transformers and reactors we have fleet of more than 4000 transformers and reactors we are the richest company operating 765kV transmitter network which is the backbone of India’s power sector. In capex and capitalization and what elements we have recently commissioned in 9 months our CAPEX has been 26,761 as against 17,651. We have already crossed target of 28,000 CAPEX which we committed which we had target with Government of India.
We have already achieved 29,200 crores capex and we have a target to exceed 32,000 crores capex this year by March 2026. In capitalization we have in nine months we capitalize assets worth 12,915 as against 7,423 crores last year. And as on 31st January 2026 we have commissioned projects worth 18,700 crores and we have target of achieving more than 22,000 crores as against our target of 20,000 crores which we committed during this year. So we want to surpass that target. The major elements which are likely to be commissioned in balance 2 months will be Bhadlatri Sikar 2, Padla 3 to Ramgadh then Navsari to Fadge, Maheshwaram to Kurnool and Navsari to Kala.
These are the major elements which we will be commissioning. These are the elements which have been commissioned since last quarter. After 30-9-2025 KRI Narella which was a very very critical line for power evacuation especially green energy from Rajasthan Ahmedabad Lakadia and Ahmedabad Navsari have been commissioned. These two lines also were very critical. Very much required for evacuation of power from Kavada area. KPS 1 KPS 2 KPS 3 Badla 2 to Seeker 2. This was also one of the much awaited transmission line. It has been commissioned. Then Banaskatha to Ahmedabad, Krishanpur to Kishtwar, Kundul 3 to Anantpuram.
Anantpuram also has been charged now and once generation comes then power will start flowing From Anantpuram to Kurnool 3 then Kurnool 2 and subsequently to Nelore, Raichur and other areas. Then 400 KV Maharani Bag Narella. That means power being generated in Ari area in Rajasthan through seeker Khetri. It will be coming to Delhi through Narella then to Marani Bhat. So this has also been commissioned. Major transformers which have been commissioned the 1500 MVA ICT at Kotra, then Khowda two 1500 MV ICT Ahmedabad also we have commissioned one transformer of 1500 MVA then three transformers of 4500 MV capacity at Narella substation.
1500 MV each capacity. So put together 4500 MVA then Kavda two again one more transformer of 15 MVA ICT six indoor 1500 MVA 760 by 400 KV and two numbers 1500 MVA ICT at Dosa substations in 400 KV at Kundul three 500 MVA then upgradation at Bhavana from 315 to 500 MVA for meeting requirement of Delhi then two number ICTs at Fatehgarh three then one number at Burj, one number at Bachau and two station Narella and Anantpuram have been commissioned since last Thursday 30th of September. In operations as usual we are always excellent. We have been maintaining availability better than or at least at par with the international best utilities in the world and our reliability or annual tripping per line is also comparable or better than international best utilities utilities which is 0.21 trippings per line for taking care emergencies disasters.
We have mobile substation similar to transmission line where we have emergency restoration system. So we have recently procured emergency restoration system for substation also. It is a mobile GIS mounted on the trailer. So wherever there is a failure because of any reason, natural disaster or maybe a normal failure also and we are not able to restore the normal system then this mobile GIS substation can be stored in that particular location to restore electricity immediately. So this has been procured and we are in the process of procuring at 400kv also and 132kv. So far we have only procured 220kv but 132 and 400kv have been ordered and they will be also coming very shortly.
In financials. Our Total income for 9 months is 35,714 EBITDA 29,846 crores. Profit after tax for 9 months is 11,382 crores. Net worth is 98,906 crores. Gross fixed asset it is 3,4000 crores. Our debt equity ratio is 59 to 41. If we compare with last year Q3 to FY25 to FY26. Total income has increased from 11,609 to 12,436 crores. There is increase of 7%. If we talk of 9 months revenue or income it has increased from 33,843 crores to 35,041. On standalone basis there is increase of 4%. And after considering this expenses, depreciation and other things, our profit after tax for Q3 has increased from 3,894 to 4,160 which is increase of 7% in Q3 versus Q3 and if we talk of nine months it has increased from 11,017 to 11,368.
There is increase of 3% on console basis income has increased from 11,743 to 12,599. There is an increase of 7% and in nine months also there is increase from 34,869 to 35,714. There is increase of 2% and profit after tax is 8% increase that is 3,862 crores it has become 4,185 but in nine months because last year we got some special income. It has from 11,379 it has increased to 11,382 which is only nominal increase is only there. So we will be telling the details why it is almost matching with the last year. So there was one time income last year.
So. In financial performance our gross fixed assets on a standalone basis has increased from 2,63,000 to 2,69,000. On console basis it has increased from 2,88,000 to 3,000 4,000. Capital work in progress it has increased from 29,000 crores to 50,000 crores. Work in progress our debt has increased from 1 29,000 to 1,43,000. Because number of projects are going on now our net worth as I told that it has increased from 91,000 to 98,000 crores. Earning per share is 12.23 and now it is 12.0.24. And the book value per share is 106.34 as against 98.51 last year our debt equity ratio is 59:41 maintained and return on net worth it is 11.51 as against 12.42 because the net worth has increased and profit is almost same.
These are some key financial informations. The income from previous period from 63, it has become 509. Interest on differential tariff 95 crores as against 102 crores Interest from subsidiaries and JVs 802 crores as against 560 Incentive 239 as against 150 and dividend from JVs 22 crores Dividend from subsidiaries 347 Dividend from associates CSR Expenses 130 crores against 161 Feru 166 crores as against 238 crores. Equity in TBCB 5543 as against 4390 crores Equity in TBCB under construction it has increased to 4268 crores. Our short term loan is 5500 crores. These are the commercial performance as against billing of 28,161 crores.
Realization is 103% which is 29,024 crores and lowest ever trade receivable days has reduced to 24.65 days at the end of Q3 quarter 3. In telecom and consultancy our income has increased from 825 crores to 879 crores. We have received one order worth 206 crores. This is a multi year order. 18 numbers customers have been added then backbone availability is maintained 100% like earlier years. Our telecom network is more than 1 lakh kilometers. In consultancy the income has increased from 427 crores to 1173 crores new orders we have five numbers ongoing 77 then international. We have two orders from international as well as ongoing 14 numbers.
We have footprints in 25 countries in business outlook. As you know that India is going for $10 trillion economy then it will require rapid industrialization and urbanization. It will require EVs it will require green hydrogen, it will require data centers. We know that by 2032600 gigawatt of non fossil fuel capacity power capacity is going to be added. Then 71 gigawatt will be additional electricity demand only for green hydrogen by 2032 in energy storage we have 47 gigawatt bas that is battery based energy storage by 2032 and pump hydro 27 gigawatt it will be enabler for re balancing and RTC supply in global energy integration.
Our vision of our Honorable Prime Minister for one sun, one world, one grid it will have number of cross border and international interconnections with the SAR countries. Then we will have Middle east and many more interconnections are likely to be there in future. For global energy integration. As on Today we have one 45,513 crore works in hand apart from 50,000 crore projects work in progress. So we have one 95,000 worth projects which are to be commissioned in next three to four years. Out of which tariff based competitive bidding we have won one 9,000 then new regulated tariff mechanism it is 23,000 ongoing RTM projects 9,934 and others like Data center and other projects.
We have 2,204 crores. The FY26 and capitalization guidance. We commit that there Will be increase from 28,000 to 32,000 crores and capitalization from 20,000 crores to 22,000 crores. These are the major projects which we have won in financial year 26. 1 is transmission system for evacuation of power from pump storage projects in Sonbhadra. It is costing about 3,626 crores with tariff of 328 crores. Second project is inter regional strengthening between SR and ER. It is 2,723 crores with tariff of 311 crores between NR and Wrindachal Varanasi involving station of Priyagraj and The cost is 2,368 crores with tariff of 323 crores.
We have one intrastate transmission project in Maharashtra for removal of transmission constraint in pune. It is 765kv by 400kv substation in Pune East. The tariff of which is about 368 crores. So cost will be somewhere about 3500 crores. Because NCT because it is intrastate project so the the cost is likely to be 34003500 crores and because it was not discussed in NCT so NCT cost is not available in this case. Then Devangiri Bellary 1111 crores with tariff of 130 crores between Southern region and western region which is Parli Bidar line 1007 crores with tariff of 104 crores.
Then transmission system in Devangiri at 379 crores with tariff of 42 crores. The battery energy storage which we have won in Andhra Pradesh it is for 150 megawatt. 350 megawatt hours. It is a sorry TBC way project at Kalikiri Andhra Pradesh. It is built on operate basis with VGF support. Then it is a large scale and renewable energy integration project. It shall enable on demand power availability and enhanced grid stability and reliability. The estimated cost is about 250 crores and annual tariff is 29.52 crores. We are also aggressively participating in these best projects and there are a number of projects which are likely to be bid out for battery energy storage.
So power grid will be aggressively participating in those projects. Also in Kenya. As you know that we have recently signed this PPP model project transmission project which involve a transmission line from Lusuk to lessos. It is 165km long line and Lilo of 400kv. Loyan galani suswa at Lusok it will have two stations, one at Lusuk and second at La Source. Project two is transmission line from 220kv Kubos, Kakamega, Musaga line and LILO of Both circuits of 132kV LASO to Musaga. At Musaga New it will have two stations, one at Kakamega and one at Musaga. Both of 220 by 132kV.
It is the first independent transmission project in Africa. And risk sharing is with multilateral development partner which is Africa 50. The estimated cost is about $311 million. And we are also working with Africa 50 in other countries also for similar projects on IPP model. The challenges in project implementation, securing of land. It is a challenge. But we are getting support from all the states right of way. Government of India has come out with the guidelines and June 24, then in March 25, then again in December 25. So with this guideline we expect that row issues will be better to be resolved and results are already seen on the ground that we are able to commission number of transmission projects.
There are supply chain constraints especially for transformers and reactors. Government of India is also considering this challenge. And we are talking with ema. We are talking with the Indian manufacturers for augmenting their capacity for manufacturing. And in fact with this, the transformer manufacturing facilities of foreign countries but available in India they are also likely to be approved by Government of India. So it will also have supply will improve and this problem will be reduced. Then skilled manpower availability. Again it is a challenge where we have already opened phone numbers of skill Developmental center at Malda, Baka, Raigarh and Basi close to Jaipur.
And we are developing or we are giving training to unskilled manpower making them skilled for transmission line works 50 batch for three months training we are giving. So at four location 200 the trained fitters are getting trained in three months. So 200 into four. Almost 800 fitters are getting ready each year. Then difficult terrain in Rajasthan, Gujarat, then Leh, Ladakh, that area. It is a definitely difficult terrain. Challenges are there. Then forest and wildlife clearances. Again it is a pain point for all of us. And we are discussing with Government of India and Government of India is supporting us in getting forest clearances also in esg, CSR and awards.
As I told that 50% of total power consumption has been met through renewable in December 2025. It has been achieved by our rooftop solar installations across power grid facilities. We have 85 megawatt solar plant already commissioned at Nagda. Then Pan India Green Energy initiatives reflecting green companies commitment to sustainability assistance, power grid ESG roadmap and supports India’s clean energy transition. Towards this we have commissioned Asia’s first 315 MVICT at Bhiwadi. It was recently commissioned at Viwadi. It will improve environmental performance because it is a biodegradable and fire safety will also be taken care and we have already ordered two more transformers and reactors of natural ester oil or synthetic ester oil which will also be coming shortly in a power grid network and they will also be commissioned.
Towards reducing row. We have recently installed insulated cross arm in monopole so it will help in reducing row from 46 meter to 31 meters. If a lattice tower of 400kV level it will have row of 46 meter. But in case of monopole with insulated cross arm it will have 31 meter row. So it will reduce almost 35 to 40% row and it will optimize the land utilization. It will have lower environmental and social impact. In csr we have taken a number of initiatives like Visham sudden at Siddharth Nagar then 50 bedded Vishaam sudden then 500 solar lights and 500 head pumps.
It was handed over to the Siddharth Nagar administration in the presence of honorable Member of Parliament Shiri Jagnipapalji. Then the ITI at Gorakhpur was inaugurated by honorable Chief Minister of UP Shri Yogi Adityanaji. Then Advanced Cancer care Homi Bhava Cancer Hospital at New Chandigarh. This also have been handed over to Chandigarh. Then we have got outstanding leadership in Asset Management Award to our Director operation by IAM India and 19th exceed award for outstanding CSR work in rainwater harvesting and conservation. Award was received by power grid. So thank you very much. Thank you for your patience hearing.
Thank you.
Questions and Answers:
operator
Thank you for this wonderful presentation and I take the liberty to say [Foreign Speech] We now start with the next segment which is Q and A and I request each one of you to raise your hand, introduce yourself and the house. My team is around to get you the mic. Yes please.
Murtuza Arsiwalla
Yeah. Hi sir, just want to check. You know on slide 28 you gave some of those competitive bid projects. Now when I look at the tariff and the NCT costs, doesn’t look as exciting. But I’m guessing there’s a lot of. Savings versus the NCT estimates. Could you give us a ballpark in in terms of what is the average. Cost saving versus what NCT believes the estimates versus what power grids is able to do those Projects at this is on the competitively bid projects you gave the estimated cost as per NCT cost and tariff. That’s right. So I just want to get a. Sense of compared to that cost Typically. What is power grid on average able to implement these projects at? I mean it will be project specific but still on average if we could. Give a sense and
Unidentified Speaker
before sir starts. Can you please introduce.
Murtuza Arsiwalla
Sorry Murzuza from Kotak.
R. K. Tyagi
Now whatever this because this is NCT cost but the cost considered by power grid will be different from this cost and based on that cost only we have bid out this project and we have won. And we will ensure that this project is executed within that limit. But typically compared to their estimates sometimes it is within that, sometimes it exceeds. Also our cost estimate will be closer to that but sometimes it is higher than that cost. Sure.
Murtuza Arsiwalla
Thank you.
Unidentified Speaker
Yes please
Shubadip Mitra
Grafno. Hi, this is Shubdeep from Navama. Firstly congratulations on a great set of numbers and execution for third quarter. So as you’ve already charted out the guidance for CapEx and capitalizations for 26 for FY27 and FY28 can you give us your revised numbers for CapEx and capitalization last year?
R. K. Tyagi
Sorry, last meet we have given 28,000. For FY26 we are increasing it to 32,000. As I told an FY27 capex will be 37,000 crores and FY28 it will be 45,000 crores
Shubadip Mitra
and for capitalization
R. K. Tyagi
capitalization FY27 it will be 30,000 and FY28 it will be 35,000.
Shubadip Mitra
Sorry, I’ll just take in the last one. Also in terms of the pipeline of. TBCB projects that you’re seeing in terms of fresh tenders any ballpark number as to how large that number is on an annual basis?
R. K. Tyagi
Yeah, there are about projects worth 55,000 crore projects are already under bidding and There are about 15,000 crore projects which are approved but yet to be up for bidding. So it becomes almost 70,000 crores and we out of 6 lakh 6 60,000 crore the pipeline of projects up to 2032. So we have already considering this. We have the 3 lakh crore projects will be already available for bidding and balance 3 60,000 crore will be available for bidding which are yet to be approved by NCT and government of India and which which are likely to be bid out in next four years.
So there will be almost on an average 90,000 crore projects each year will be bid out.
Shubadip Mitra
So if I hear you correctly out of 660,000 crores till FY32 3 lakh is done. Another
R. K. Tyagi
3000 is already under execution or commission. 55,000 up for bidding. They are available for bidding. 15,000 yet to be available for bidding and balance will be approved and subsequently available for bidding. So Those will be 3,60,000 in 4 years next 4 years so that they are completed before 2032.
Shubadip Mitra
Perfect. Understood sir. Thank you.
Unidentified Speaker
Yes please.
Apoorva Bahadur
Hi sir, this is APUR from iifl. In your comments you mentioned about company sort of getting aggressive on the battery storage. There was also a recent CERC draft proposing inclusion of storage in cost plus model. Any thoughts over there sir? Or if you can share some plans.
R. K. Tyagi
Yeah, there is only draft paper on this. And actually for grid reliability now we have almost 50,000 megawatt re power in grid so which is being generated. And because this variability and intermittency of renewable energy there will be some grid stability storage required also. So we are considering that this is the idea behind grid stability that as a transmission element the battery energy storage will also be part of the transmission.
And if once this CRC draft document is approved or it is available then there will be projects for battery energy storage in RTM also. So that is under discussion.
Apoorva Bahadur
Sir, how large could that quantum be
R. K. Tyagi
exactly? I cannot tell but it will be. Normally it will be 10% of the total requirement. Suppose we have 50,000 megawatts. So normally it is 10 to 15% of the total generation capacity.
Apoorva Bahadur
So another question on the budget yesterday there was a change in regime for mat. Does it have any impact on the tax liability or treatment of tax for our SPBs? The TBCB one specifically.
Unidentified Speaker
Yeah, actually all the TBCBs already are under the new tax regime only. So there is no Already all the TBCBs are not paying MAT if there is no profit on the income tax rule. And we are following only the old tax regime for power grid because we have ATIA benefits. So we will have to evaluate that how long it will be beneficial to switch over from old tax regime to new tax regime for power grid. Otherwise all other SPVs are already under the new tax regime only. And for power grid anyhow whatever you pay the taxes it is passed through only.
Apoorva Bahadur
Sir. Lastly on the Capitol you have to.
Unidentified Speaker
Restrict because other also. So maybe two questions and then we move on. Yes please, a little representation on the left side. I’ll come to. I’ll come to you.
Mohit Kumar
Hi, good afternoon Sir. My question is on the supply chain challenges. I think the government of India. Can you hold it a little? The government of India is working on some Chinese relaxation. Can you just help us with the kind of supply chain relaxation was from the government. And we expect and can just also highlight those challenges which are happening, which are happening in component wise.
Unidentified Speaker
Sir, can you introduce yourself?
Mohit Kumar
I’m Mohit Kumar from IEC ICI Securities. Yeah,
R. K. Tyagi
yeah. Especially for transformers and reactors as a component level, as of now there is no challenge only for manufacturing and assembly of transformer components like code, core, winding, bushing. There is a challenge. As per the present capacity of our transformer manufacturers. OEMs like T Hitachi, Toshiba, CG and other manufacturers. Today we have capacity of 2,28,000 MVA capacity. And even if we consider their augmentation in next two to three years, the capacity is only 3, it will become 3,98,000. Whereas demand in 26, 27 itself it is 4, 21,000.
So unless until the Chinese companies available in India, if relaxation by government of India is given, then it is going to boost the transmission sector. So it should be a good move for everybody. So on clarification, are you looking also for import? No, right. Import of customer import or import of like already whatever components like copper, then paper, these components will be. Or core, these will be coming from outside. Only today also they are coming from outside. Tomorrow also they are coming because all the manufacturers they are importing these components and assembling in India. So they will continue to be important.
Mohit Kumar
Understood. My second question,
Unidentified Speaker
we’ll have to restrict. Please. Yes, yes, please.
Nikhil Nigania
Yeah. Hi sir. Hi, I’m Nikhil from Bernstein. The first question is Right of way had been a consistent challenge for us over the last one year or so. And you highlighted it still being a challenge. But was there a change this quarter and in January that we could see such big an improvement in capitalization
R. K. Tyagi
like in Q3 and January? Yes, there was like when we talk of this change or modification in guideline in March 25th. So these guidelines were issued by government of India. Then subsequently they were adopted by government of Delhi, Government of Haryana, Government of Rajasthan, Government of Gujarat.
Gujarat. And that time took almost somewhere. Some state adopted in July, some state adopted in August. And finally the orders for this MRC rate or land rate were issued by respective District Collector or district Magistrate in September and October. So after that only work started happening. So that is why progress now it is increasing. So now in Q3, Q4 progress will be better. So would you say it’s not a temporary change we have seen, it’s a structural shift. We are seeing in RW getting much better than the last couple of years. Yes. Yes. Because earlier days there was only row area was considered 30%.
And now it is not only 30% in rural area in Sebi Erman it is 45%. And this urban area like Delhi or CITIES it is 60% of RW area. We have to compensate for land value. And earlier it was the circle rate to be paid multiplied by area. Now it is market rate. And methodology also has been issued by government of India which says that there will be three valuer. One will be by the farmer, one will be by power grid. And these two valuers will give the rate, market rate and average of this will be taken as market rate.
If the farmers are not agreeing to this rate because there can be difference between farmer and power grid value rate then there will be third valuer nominated by dm. Then rate of that will be considered for coming out with the market rate. So that that procedure has been now streamlined.
Nikhil Nigania
Perfect. Thank you, sir.
Sumit Kishore
Sumit Kishore from Access Capital. So my first question is a follow up on what you explained to Mohit. So the whole transformer in no situation will get imported. There will have to be localization of manufacturing and then components will get imported. Is that the right understanding?
R. K. Tyagi
Yeah. So government of India is not considering importing transformer as a total item. Very clear. It is only assemblies. The way it is happening now, it will continue to be like.
Sumit Kishore
Okay. Okay. So my two questions. First one is, you know when we look at the CEA website data on physical progress of projects. So up to December, when I saw the data for progress on transmission lines for power grid was 33% of the full year target. And we saw across the categories similarly for substations it was some 56% of target. So I thought that maybe, you know the capitalization will also be weak. But how does that work? How do we track that using the physical data on progress on the CEA website. And the second question is on hvdc.
So we have seen that the number two player now is almost half the works in hand of power grid. At least they claim to be 750 billion rupees. They’ve taken two HVDC projects. So what are the next two or three HVDC projects that are going to be awarded in the country? What is their size and timeline? If you can please cover that and your strategy going forward. Thank you.
R. K. Tyagi
Okay. The CA website. Yes. There was issues earlier. As I told that by Q2 the results were not good. In Q3 also you can see that it was only 12,000 crores. Capitalization. So as of today we have 3300 ckm. We have already achieved our target annual target is 5500 ckm circuit kilometer out of which we have achieved already achieved 3300 circuit kilometer in transformers. Our target as given to CA or Government of India. It is 60,000 MVA capacity. We have already achieved 42,000 MBA and we are sure that we will be achieving almost 1500-2000 circuit kilometer by end of this financial year.
So we will be very close to the target which has been given by CA or Government of India. And in similarly in transformation also we will have almost 18 to 20,000 MV capacity will be added in next two months. So we will be very close to 60,000 MBA capacity. In case of HVDC. You told that yes the only there are only. Everybody knows that there are only three manufacturers. Hitachi can you increase. Hello. Hello. Yes. So Hitachi is there then G is there and Siemens is there. So we have already given a project of this Kavla Nagpur and they are also executing this Patipur to Badla project and then Kavada to this Southall part of Adani.
Although it is a different tsp it is again it is by another GIS sorry HVDC supplier. So we have projects like Bikaner Barme 2 to South Kalam which will cost almost 35,000 worth crore project which is already up for bidding. And OBD will be done on 1st April 2026. There are a number of more projects like Bikaner 5 to Bicycle Begunia which this is also this should be shortly approved. Then there is a discussion about 320 KV 500 megawatt paradeep to Andaman. This is likely to be commissioned by 2031-32. Again it is almost 31,000 crores.
Then there are some projects in Bramputra basin. It is Nigloc in Arunachal Pradesh. Then Namsai, Rohing, Silapattar, Gogamuk, Rauta. So these are some projects which are likely to be Niyar depending on the hydro power generation in northeastern region. That the timeline will vary depending on the progress of hydro project. Because hydro project time is almost say 8 to 10 years and HVDC project is almost 4 years. So depending on the progress these projects will be available for bidding. There is one more project which is already discussed in nct. It is Kundul to Vishakhapatnam. So these are few projects which are.
Sumit Kishore
Can two LCCs get awarded this year? The two projects that you said first one and two can they get awarded this year? They are both LCC, right?
R. K. Tyagi
Hopefully. Barmaid two to South Kolam. It is sure. And there should be I think five to be also. It should be possible to be awarded this financial year. Next financial year.
Sumit Kishore
Next financial year?
R. K. Tyagi
No, not this. This financial year.
Sumit Kishore
527.
R. K. Tyagi
Yes.
Sumit Kishore
And Picar is 300 billion or smaller.
R. K. Tyagi
It is 80006000 megawatt almost. It will be again 35,000 crores.
Sumit Kishore
Thank you so much sir.
Puneet Gulati
So yeah, thank you so much. Puneet from hsbc. My first question is with respect to the increase in commodity prices how is that impacting your projects? Commodity prices means copper prices, aluminium, they’ve gone up. Is it impacting your cost estimates? Yeah.
Unidentified Speaker
There are about the transmission lines and substations, whatever the transmission contracts we are awarding an affirm price only. So the metal prices are not going to impact our returns in respect to the transmission line contracts and for substations we have certain PV class in the contracts which we actually consider during our bidding. So I don’t think we are going to be impacted much on the commodity prices variation.
Puneet Gulati
Understood. Secondly and do you also see increase in repair and maintenance contracts on your regulated business increasing in near future or you think that’s still a few years away?
Unidentified Speaker
No, next to five years. It’s already fixed. It’s. They have already given the windm charges for the next five years. So next revision will be after 2029.
Puneet Gulati
Capacity augmentation for your existing RTM projects. Is there a room for those projects to come in at a higher. Higher.
Unidentified Speaker
Yeah that we are already doing. We the capacity at whatever we are increasing at all there we are doing in ad cap which is. Which is suppose the life is over that we are already. We are putting into regulatory CSI and we get the tariff on that.
Puneet Gulati
Okay, great. Thank you. Yes,
Unidentified Participant
hi sir, this is G SH from Morgan Stanley. Thanks for the detailed presentation on the construction pipeline that you have right now. I think it’s about 1 lakh 43 thousand crore for transmission. If you can just break up the three four year five year plan because you’ve given capitalization for two years. If you can just help us with within regulated and for non regulated and within non regulated HVDC commissioning like next 4, 5 years. If you can just spell out the numbers. And the second one was the market share question.
In nine months how much bidding has completely happened thus far? And what’s your order market share for this year? Mr. Vamsi? Yeah. Market share for nine months in bidding and Commissioning, capitalization, progression for the backlog right now. And if you can break that up in hvdc, non HVDC and regulated on.
Unidentified Speaker
The HVDC front as we have one project which is going on on the tbcb it will be for the next three years, two to three years that will be spread across the entire capex. And we have one RTM project also under HVDC which was given to us by the regulator. So that will be taking up about another three years. So that Madhurawati also is there. Those are the two projects over there which will be there in the next three years. The HVDC part and most of the TBCB projects. The general TBCB projects have a range about two to three years of capex.
So whatever is there under tbcbs, what has been shown out there that will be spread across two to three years. The remaining RTM projects are also on shorter duration. They will also be overlapping in a similar period about 18 months to 24 months. Most of the projects.
Unidentified Participant
And any comment on the market share for the new projects? One in this fiscal year?
Unidentified Speaker
Yeah, we are having that guidance. We have about 50 to 60% it is there. We are getting a lot of interested projects also. So but then if you look into the interstate projects we are maintaining our market share.
Unidentified Participant
And just one clarification. Intrastate would be how big today in either your backlog. Backlog means orders in hand. How much is intrastate right now Intrastate.
Unidentified Speaker
Has a smaller share. Intrastate is just opening with states like Maharashtra and Karnataka opening up. Because these intrastate projects by and large depends upon the states how they are keen in trying to move ahead in these projects. So we see that intrastate will be gaining traction. And since the there is significant amount of projects already under the interstate front. We are also evaluating the the the risks which are associated with the intrastate projects and basis that we are going at. We have as already as our chairman has placed it one of the largest intrastate project in the state of Maharashtra.
But we have recently been successful in it. We are awaiting the LoA for it.
Unidentified Participant
Like there was as per NEP guideline there was a total 3 almost 3 lakh crore projects under intrastate. And so far only few projects have been awarded so balance are yet to be awarded by state like Rajasthan. They are talking about projects worth almost 60,000 crores. Similarly Karnataka also maybe 60 to 70,000 and all states where renewable is more. So there will be number of projects especially in intrastate and Depending on the challenge. Like if some project in Karnataka like in Bangalore or in Maharashtra like in Pune or Bombay. So depending on our book position we will be aggressively or non aggressively bidding for those projects.
Because being intra state project and very difficult projects. So we will taking a call depending on the situation. Okay.
Unidentified Speaker
Yes please.
Prateek Jain
Yes. So this is Pratik from ICICI Prudential. So just a couple of questions. So in Q3 we saw a big jump in capitalization. So just a clarification on that. So is this more of a one off thing in terms of quarterly run rate or can we expect that in Q4 and going forward in H1 next year? So how do we think about it? Should we look at it on a. Quarterly basis this figure will continue or will it be more of an annual completion target?
R. K. Tyagi
Like the capitalization depend on the project being commissioned. It depends on the size of that particular particular project. If it comes in say Q4 or Q1 or Q2. So definitely the percentage of that particular quarter will increase. Otherwise we will be continuously commissioning the projects. I can tell you the projects like we have Bala 3 to Seeker 2, Bala 3 to Ramgarh, we have Navsari to Fatgay, we have Kundal 3 to Maishwaram, we have Anandpuram to Kadappa, we have Navsari to Kala which are likely to be commissioned completed in Q4. Then if we talk of Q1 we will have projects like Kopal Gadak, we will have the Copal to Raichur, we will have Kopal to Narendra, we will have Biavar Dosa.
So these projects will continue which will be commissioned in faced manner and percentage of each quarter will be very difficult to tell. Because it depends on size of the projects which will be commissioned in a particular quarter.
Prateek Jain
Right. And so second question. So there appears to be some policy agitation regarding HVDC projects because they are quite costly. So how do we look at this? So will it impact the CAPEX guide? Can it impact the CAPEX guidance? Let’s say from FY28 to 30. And can the overall transmission CAPEX outlook be impacted because of this?
R. K. Tyagi
Like I. I told that we have now 32 000F for FY26. About 37 000. We have already committed to government of India for next financial year FY27 37,000 and FY28 45,000. So when I am talking about 37 and 45,000. So definitely our HVDC projects major expenditure will be during that period. Okay. So once it is commissioned because this project already we. It has already completed one year. So the timeline is about four years. So after three years it will be commissioned. So in after two years the major expenditure will happen because all equipments will start coming to India and they will be supplied.
And finally it will be commissioned after say three years from now. So it will vary depending on the supply and expenditure. Okay, thanks.
Namit Arora
Yes, thank you. Yeah. Good afternoon Dr. Tyagi here on the right hand side. Firstly, since it may be our last opportunity to interact with you in such a forum, many congratulations on a very illustrious career and all the contributions to the nation. So my question, I’m Namit Arora from Ingrowth Capital. So my question was in the last three and a half, four years there may be a lot of initiatives that you would have taken to build on the foundation which may not have fully borne fruit so far but will obviously benefit the organization over the next five to 10 years.
If you could give us some color on that. Thank you.
Unidentified Speaker
[Foreign Speech]
R. K. Tyagi
Okay, thank you. Thank you very much. So like Power grid is a company which was born in 1989 and we have started operations in 91, 92. So we have been taking initiatives all these years. So there is no last three years or four years we have been taking initiatives and it is keeping on adding value to power grid. So similarly in last three years or you could talk of any three years. So there have been addition of new initiatives and which help power grid in achieving our capex and capitalization and growth of power grid.
Like we had in FY25 24 we had this capex of about 12,500 crores. Last year we had 26,000 crores. This year we are going to have 32,000 crores. Similarly we will have capitalization also like last year it was not much but this year it will be 22,000 crores. Next year again it will increase. So the initiatives which we have taken in recent past is we have made dedicated row cell. So the row cell it is being handled from corporate office where it is being monitored on day to day basis from corporate office. So and in each region there will be row cell.
So they are discussing row issues of each and every tower, each and every transmission line. So that is helping us in a big way to take care that management is aware that what is happening in this particular line and immediately action is taken. Suppose there is a row in a particular line then if it is brought to the knowledge of management then immediately we discuss with say chief secretary of that particular state or power secretary of government of India so that whatever help is required at ground immediately that is taken. And we we are meeting with the chief ministers of various states.
The power minister is calling or having meetings with all the states. So government of India is also helping power grid in resolving row issues. Second is like transformers and reactors we are taking in advance. Like Suppose I know that so many projects are coming for for bidding. And after two years or three years so many transformers will be required for commissioning. So I should have those transformers in hand. So there should not be uncertainty that project is won. But transformer is not there. So we are procuring as a bulk transformer. And each package we are having 30 transformers.
One package we are procuring which will be requirement for maybe 23 substation requirement will be taken in advance only in one package and such package we are maybe 10 to 12 package each year we are coming out with these packages. Then we also have a land acquisition cell or land acquisition department which we are whenever any project is coming for bidding. So immediately we are our land acquisition cell is active and they are going to ground and they are talking to various. And for each project we are the four options will be there three to four option.
So that in case we win the project immediately the land should be available. So that initiative is also helping us. Then one more project, one more initiative. I can say that the mechanization of transmission line tower erection that now we are talking of cranes. We are talking of central cranes. So we it is a now reality that cranes are to be used for making transmission line towers or erecting transmission line towers. We have portadex that Portadex mats are available that even in rains or where muddy area is there or even this mud is there in that those conditions also we were able to work in rains also.
So the porter deck mats are being used in last three to four years. So then we also started monitoring. We also have the control looms in each region that all sides are connected through camera. Earlier we had for operation these control centers were used for only for monitoring of operations operation now. But now project monitoring is also being done through control center installed by camera. And we can see even chairman can see in his room that what is happening in this particular project. What is the progress yesterday? What is the progress today? If any challenge is there in this particular project.
So the chairman can call that project manager on the screen on the camera and discuss what is happening in this particular project. So I I remember only these initiatives.
Namit Arora
Thank you very much.
Unidentified Speaker
[Foreign Speech]
Namit Arora
Thank you very much, sir. All the best to you and the Entire team. Thank you.
R. K. Tyagi
Super performance.
Unidentified Speaker
Last couple of questions and then we need to close. So please. Yep.
Unidentified Participant
Hi sir. Thank you. Shapoor from Jeffries. So I just want to understand the numbers that you shared on the capitalization guidance now and going forward it has been raised. So could you maybe help us understand what has driven this acceleration in the capitalization and maybe quantify between RTM and tbcb? What will be the rough split in the capitalization for 26, 27 and 28? And other than that, what has driven the increase in guidance? Is it, you know, are you expecting some projects which were scheduled to commission later coming forward? Or is just your overall works and handling expanded? If you could help with that, sir.
R. K. Tyagi
Yeah. Like if you see from the data that it is 1 lakh 45,000. If we remove 2000 worth projects for data center and other areas, it becomes 1:43,000. So most of the projects are under TBCB only. And the ongoing RTM is hardly 9,000, 10,000 crores. And one RTM project which we are talking is the Leh Pang which is yet to be launched. Basically. So in next 2 to 3 years we will have mainly TBCB project. So I can say that 80 to 90% will be TBCB, 10 to 20% will be RTM. Got it sir. Thank you so much.
And you are saying like what trigger or why? Like say suddenly there is an increase in this. Because this RE projects are very critical projects which are commissioned. And we don’t want that any power, RE power, green power, which is almost free given by nature. So it should not be curtailed at any cost. So we want to focus on these projects so that no power is curtailed in India.
Unidentified Participant
Got it, sir. Thank you so much.
Unidentified Speaker
Sir, the last question. [Foreign Speech] Yeah, we can close. Good. May I now request. [Foreign Speech] Sri L Kaj Kumarji. He’s the Executive Director, Corporate Planning. And I must congratulate him for the fantastic presentation that he and his team they put together. So nice of you, sir. Please come.
Khajkumar LK
Good afternoon to all. Respected Chairman and Managing Director Power Grid, members of the board of directors, distinguished investors and dear friends. On behalf of Power Grid, I express our sincere gratitude to our CMD and the board for their insights and vision that continues to steer the organization towards sustained growth and excellence. I also extend our thanks to all investors and partners for your presence and valuable participation. Your trust and confidence in Power Grid strengthens our resolve to deliver on our commitments and pursue continued progress in the power sector. My appreciation also goes to the organizing team for their meticulous efforts in ensuring the smooth conduct of this event.
Finally, I thank all attendees who for your engagement and constructive feedback which make this interaction meaningful. As Power Grid continues to expand transmission networks, adopt advanced technologies and pursue sustainable growth, we look forward to your continued support and partnership. Thank you once again for your faith in Power Grid and thank you.