Power Grid Corporation of India Ltd (NSE: POWERGRID) Q3 2026 Earnings Call dated Feb. 02, 2026
Corporate Participants:
Satyaprakash Das — Company Secretary and Compliance Officer
R. K. Tyagi — Chairman and Managing Director
Unidentified Speaker
L. K. Khajkumar — Executive Director, Corporate Plannin
Analysts:
Murtuza Arsiwalla — Analyst
Shubadip Mitra — Analyst
Apoorva Bahadur — Analyst
Mohit Kumar — Analyst
Nikhil Nigania — Analyst
Sumit Kishore — Analyst
Puneet Gulati — Analyst
Unidentified Participant
Prateek Jain — Analyst
Namit Arora — Analyst
Shirom Kapur — Analyst
Presentation:
Operator
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. Sathyaprakash Das to please do the honors.
Satyaprakash Das — Company Secretary and Compliance Officer
Thank you, Bakulji. Good morning, everyone. I’m pleased to welcome you to Power Grid Corporation of India Limited’s Analysts 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; Shri Ravisankar, Director Finance and CFO; Dr. Yatindra Dwivedi, Director Personnel; Shri. Naveen Srivastava, Director Operations, Shri Vamsi Rama Mohan, Director Projects.
We shall now watch a short corporate video on our power is performance.
[Video Presentation].
Thank you. Now I would like to invite our Chairman and Managing Director, Dr. R. K. Tyagi to deliver the opening remarks and presentation. Following that, we will have the Q&A session. Sir, over to you.
R. K. Tyagi — Chairman and Managing Director
Good morning, respected investors, my colleagues on the dais, all board members. Ladies and gentlemen, in today’s Investor Meet, 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 a number of challenges in commissioning of 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 our 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 INR3 trillion 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 a partnership with Africa50 in Kenya, particularly one 400 kV and 220 kV project, we will be starting shortly. Considering energy storage in battery, so we have ventured into first battery energy storage project on build-own-operate in Andhra Pradesh.
Towards CSG, we have recently commissioned first 400 kV/220 KV, 315 MVA transformers using synthetic ester oil, which is vegetable oil. It is easily — it can be easily decomposed unlike mineral oil. So, it is a step towards ESG. Then earlier we had in 2019, we had commissioned 400 kV reactor also. In between two transformers, one at Aizawl and one at Pusauli, we had retrofilled ester 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 FII is about 24%, domestic IIs 20%. For ’24-’25, again, like all the years last so many years, we have been achieving MOU rating of excellent by government of India, Department of Public Enterprise. As I told that gross fixed assets for the first time, it has closed INR3 lakh trillion. 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 two, three quarters, we have Madam Sajal Jha as Independent Director.
We have one of the largest transmission network in the world by any utility. It is 1,83,174 circuit kilometers. With 1,566 number of transmission line, our substations with the last commissioning of Ahmedabad then Ananthapuram, it has increased to 288 with 5,99,000 MVA capacity. Inter-regional capacity, that means power flow capacity from one region to another region, it is 1,01,000 megawatt. The transmission system availability is 99.84%. These are the details of various voltage level substations. We have 18 HVDC station, 70 numbers of 765 kV substations, which is the highest in the world by any utility.
Then 400 kV is 169 and 400 kV and below 31 numbers. We have, for grid stabilization, SVC and STATCOMs. And transformers and reactors, we have fleet of more than 4,000 transformers and reactors. We are the richest company operating 765 kV transmitted network, which is the backbone of India’s power sector. In capex and capitalization and what elements we have recently commissioned. In nine months, our capex has been INR26,761 crores as against INR17,651 crores. We have already crossed target of INR28,000 crores capex, which we committed, which we had target with Government of India. We have already achieved INR29,200 crores capex. And we have a target to exceed INR32,000 crores capex this year by March 2026.
In capitalization, we have — in nine months, we capitalized assets worth INR12,915 crores as against INR7,423 crores last year. And as on 31st January, 2026, we have commissioned projects worth INR18,700 crores. And we have a target of achieving more than INR22,000 crores as against our target of INR20,000 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 two months will be Bhadla-III -Sikar II; Bhadla-III to Ramgad, then Navsari to Padghe, Maheswaram 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 30th September, 2025. Khetri-Narela, 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 Khavda area, KPS1, KPS2, KPS3. The Bhadla II to Sikar II, this was also one of the much awaited transmission line. It has been commissioned. Then Banaskantha to Ahmedabad, Kishanpura to Kishtwar, Kurnoo-lIII to Ananthapuram. Ananthapuram also has been charged now and once generation comes, then power will start flowing from Ananthapuram to Kurnool-III, then Kurnool-II and subsequently to Nellore, Raichur and other areas.
Then 400 kV, Maharani Bagh-Narela, that means power being generated in RE area in Rajasthan through Sikar-Khetri, it will be coming to daily through Narela then to Maharani Bagh. So, this has also been commissioned. Major transformers, which have been commissioned, the 1,500 MVA ICT at Kotra, then Khavda-II 1,500 MVA ICT. Ahmedabad also, we have commissioned one transformer of 1,500 MVA. Then three transformers of 4,500 MVA capacity at Narela substation, 1,500 MVA each capacity. So, put together 4,500 MVA. Then Khavda-II, again one more transformer of 1,500 MVA ICT-6, Indore 1,500 MVA 760/400 kV, and two numbers, 1,500 MVA ICT at Dausa substations. In 400 kV, at Kurnool-III 500 MVA, then upgradation at Bawana from 315 MVA to 500 MVA for meeting requirement of Delhi. Then two number ICTs Fatehgarh III, then one number at Bhuj, one number at Bhachau. And two stations at Narela and Ananthapuram have been commissioned since last 30th 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, which is 0.21 tripping 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 normal failure also, and we are not able to restore the normal system, then this mobile GIS substation can be installed in that particular location to restore electricity immediately. So, this has been procured, and we have — we are in the process of procuring at 400 kV also and 132 kV. So far, we have only procured 220 kV, but 132 kV and 400 KV have been ordered and there will be also coming very shortly.
In financials, our total income for nine months is INR35,714 crores, EBITDA, INR29,846 crores, profit after tax for nine months is INR11,382 crores, net worth is INR98,906 crores, gross fixed asset INR3,04,000 crores, our debt-equity ratio is 59% to 41%. If we compare with the last year Q3 to FY25 to FY26, total income has increased from INR11,609 crores to INR12,436 crores. There is an increase of 7%. If we talk of nine months revenue or income, it has increased from INR33,843 crores to INR35,041 crores on a stand-alone basis. There is increase of 4%. And after considering these expenses, depreciation and other things, our profit after tax for Q3 has increased from INR3,894 crores to INR4,160 crores, which is an increase of 7% in Q3 versus Q3. And if we talk of nine months, it has increased from INR11,017 crores to INR11,368 crores. There is an increase of 3%.
On a consol basis, income has increased from INR11,743 crores to INR12,599 crores. There is an increase of 7%. And in nine months also, there is increase from INR34,869 crores to INR35,714 crores. There’s an increase of 2%. And profit after tax is an 8% increase. That is INR3,862 crores, it has become INR4,185 crores. But in nine months because last year, we got some special income, it has — from INR11,379 crores, it has increased to INR11,382 crores, 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 stand-alone basis has increased from INR2,63,000 crores to INR2,69,000 crores. On consol basis, it has increased from INR2,88,000 to INR3,04,000. Capital work in progress it has increased from INR29,000 crores to INR50,000 crores work in progress.
Our debt has increased from INR1,29,000 crores to INR1,43,000 crores because number of projects are going on now. Our net worth, as I told that it has increased from INR91,000 crore to INR98,000 crores. Earnings per share is 12.23% and now it is 12.24%. And the book value per share is INR106.34 crores as against INR98.51 crores last year. Our debt-to-equity ratio is 59:41maintained. 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 information. The income from previous period from INR63 crores, it has become INR509 crores. Interest on differential tariff INR95 crores as against INR102 crores, interest from subsidiaries and JVs, INR802 crores as against INR560 crores, incentive INR239 crores as against INR150 crores.
And dividend from JVs, INR22 crores, dividend from subsidiaries, INR347 crores, dividend from associates, CSR expenses INR130 crores, against INR161 crores. FERV INR166 crores as against INR238 crores. Equity in TBCB INR5,543 crores as against INR4,390 crores. Equity in TBCB under construction, it has increased to INR4,268 crores. Our short-term loan is INR5,500 crores. These are the commercial performance as against billing of INR28,161 crores, realization is 103%, which is INR29,024 crores. And lowest ever trade receivable days has reduced to 24.65 days at the end of Q3 — quarter three.
In telecom and consultancy, our income has increased from INR825 crores to INR879 crores. We have received one order worth INR206 crores. It is a multi — multiyear order. 18 numbers customers have been added, then backbone availability is maintained 100% like earlier years. And our telecom network is more than 1 lakh kilometers. In consultancy, the income has increased from INR427 crores to INR1,173 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 the 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 2032, 600 GW of non-fossil fuel capacity, power capacity, is going to be added. Then, 71 GW will be additional electricity demand only for Green hydrogen by 2032. In Energy Storage, we have 47 gigawatt BESS [Phonetic], 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, 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 SAARC countries, then we will have Middle East and many more interconnections are likely to be there in future for global energy integration. As of today, we have INR1,45,513 crore works in hand, apart from INR50,000 crore projects work in progress. So, we have INR1,95,000 worth projects which are to be commissioned in next 3-4 years. Out of which, Tariff Based Competitive Bidding we have won INR1,09,000 crores, then New Regulated Tariff Mechanism it is INR23,000 crores, ongoing RTM projects INR9,934 crores and others like data centre and other projects we have INR2,204 crores. The FY26 and capitalization guidance, we commit that there will be increase from INR28,000 crores to INR32,000 crores and capitalization from INR20,000 crores to INR22,000 crores. These are the major projects which we have won in FY26.
One is, transmission system for evacuation of power from pumped storage projects in Sonbhadra. It is costing about INR3,626 crores with tariff of INR328 crores. Second project is inter-regional strengthening between SR and ER. It is INR2,723 crores with tariff of INR311 crores. Between NR and WR, Vindhyachal-Varanasi, involving station of Prayagraj, and the cost is INR2,368 crores with tariff of INR323 crores. We have one intrastate transmission project in Maharashtra for removal of transmission constraints in Pune. It is 765 kV/400 kV substation in Pune East, the tariff of which is about INR368 crores. So, cost will be somewhere about INR3,500 crores. Because it is an intrastate project, so the cost is likely to be INR3,500 crores, because it was not discussed in NCT. So, NCT cost is not available in this case. Then Davangere-Bellary, INR1,111 crores with tariff of INR130 crores.
Between southern region and western region, which is Parli-Bidar line, INR1,007 crores with tariff of INR104 crores. Then transmission system in Davangere, INR379 crores with tariff of INR42 crores. The Battery Energy Storage which we have won in Andhra Pradesh, it is for 150 megawatt, 350 megawatt hours. It is a TBCB project at Kalikiri, Andhra Pradesh. It is Build-Own-Operate basis with VGF support. It is a large scale and renewable energy integration project. It shall enable on demand power availability and enhance grid stability and reliability. The estimated cost is about INR250 crores and annual tariff is INR29.52 crores. We are also aggressively participating in the BESS projects. And there are 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 involves transmission line from Loosuk to Lessos. It is 165 kilometer long line and LILO of 400kV Loyangalani-Suswa at Loosuk. It will have two stations, one at Loosuk and second at Lessos. Project two is transmission line from 220kV Kibos-Kakamega-Musaga line and LILO of both circuits of 132kV Lessos to Musaga at Musaga at Musaga New. It will have two stations, one at Kakamega and one at Musaga, both of 220/132kV. It is the first independent transmission project in Africa and risk sharing is with multilateral development partner which is Africa50. The estimated cost is about $311 million. And we are also working with Africa50 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 in 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 IEEMA, we are talking with the Indian manufacturers for augmenting their capacity for manufacturing. And, in fact, with the transformer manufacturing facilities of foreign countries but available in India, they are also likely to be approved by Government of India. So, supply will also improve and this problem will be reduced.
Then skilled manpower availability, again, it is a challenge. We have already opened four numbers of skill developmental center at Malda, Banka, Raigad, and Bassi 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 fourlocations 200 trained fitters are getting trained in three months. So, 200 into 4, 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 and 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 company’s commitment to sustainability, it strengthens Power Grid ESG roadmap and supports India’s clean energy transition.
Towards this, we have commissioned first — Asia’s first 315 MVA ICT at Bhiwadi. It was recently commissioned at Bhiwadi. It will improve environmental performance because it is a biodegradable and a 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. So, which will also be coming shortly in the 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 metres to 31 metres. If a lattice tower of 400 kV 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 Vishram Sadan at Siddharth Nagar, then 50 bedded Vishram Sadan and 500 solar lights and 500 hand pumps. It was handed over to the Siddharth Nagar administration in the presence of Hon’ble Member of Parliament, Shri Jagdambika Pal ji. Then, the ITI at Gorakhpur was inaugurated by Hon’ble Chief Minister of U.P., Shri Yogi Adityanath ji, then Advanced Cancer Care Homi Bhabha Cancer Hospital at New Chandigarh. This also has been handed over to Chandigarh. Then we have got outstanding Leadership in Asset Management award to our Director Operations by Institute of Asset Management, 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 patient hearing. Thank you.
Questions and Answers:
Operator
Thank you for this wonderful presentation. And I take the liberty to say Chairman sir, [Foreign Speech]. We now start with the next segment, which is Q&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.
Murtuza Arsiwalla
Yeah. Hi, sir! I 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, it 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 terms of, what is the average cost saving versus what NCT believes the estimates versus what Power Grid is able to do those projects at? This is on the competitively bid projects. You gave the estimated cost as per NCT.
R. K. Tyagi
Cost and tariff.
Murtuza Arsiwalla
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?
Operator
Before, Sir, starts, can you please introduce.
Murtuza Arsiwalla
Sorry, Murtuza from Kotak.
R. K. Tyagi
No. 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.
Murtuza Arsiwalla
But typically, compared to their estimates —
R. K. Tyagi
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.
Murtuza Arsiwalla
Sure. Thank you.
Operator
Yes, please.
Shubadip Mitra
Good afternoon. Hi, this is Shubadip from Nuvama. 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 Capitalisations for ’26, for FY27 and FY28, can you give us your revised numbers for capex and capitalization?
R. K. Tyagi
Last year, sorry, last meet, we have given INR28,000 crores for FY26. We are increasing it to INR32,000 crores as I told and for FY27, capex will be INR37,000 crores. In FY28, it will be INR45,000 crores.
Shubadip Mitra
And for capitalization?
R. K. Tyagi
Capitalization, FY27, will be INR30,000 crores, and FY28, it will be INR35,000 crores.
Shubadip Mitra
Understood. Sorry, I’ll just take 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 INR55,000 crore. Projects are already under bidding, and there are about INR15,000 crore projects, which are approved but yet to be, up for bidding. So, it becomes almost INR70,000 crores. And we — out of INR6,60,000 crore, the pipeline of projects up to 2032. So, we have already considering this, we have the INR3,00,000 crore projects will be already available for bidding and balance INR3,60,000 crore will be available for bidding, which are yet to be approved by NCT and Government of India, and which are likely to be bid out in next four years. So, there will be almost, on an average INR90,000 crore projects each year will be bid out.
Shubadip Mitra
So if I hear you correctly, out of INR6,60,000 crores till FY32, INR3,00,000 crores is done. Another INR3,60,000 crore is to —
R. K. Tyagi
INR2,30,000 crores is already under execution or commissioned, INR55,000 crores up for bidding. They are available for bidding. INR15,000 crore yet to be available for bidding and balance will be approved and subsequently available for bidding. So those will be INR3,60,000 crores in four years — next four years, so that they are completed before 2032.
Shubadip Mitra
Perfect. Understood, sir. Thank you.
Operator
Yes, please.
Apoorva Bahadur
Hi, sir. This is Apoorva 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 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 a part of the transmission. And if once this, CERC 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
Understood. 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 SPVs? The TBCB one specifically?
Unidentified Speaker
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 80(IA) 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 pass through only.
Apoorva Bahadur
So lastly, on the —
Operator
We have to restrict because there are others also. So maybe two questions and then we move on. Yes please? A little representation on the left side. I’ll come to you. 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 —
Operator
Can you hold it a little closer.
Mohit Kumar
Government of India is working on some Chinese relaxation. Can you just help us with the kind of supply chain relaxation you asked from the government and the expect? And can you just also highlight the challenges which are happening in component wise?
Operator
Sir, can you introduce yourself?
Mohit Kumar
Hi I’m Mohit Kumar from ICICI Securities.
R. K. Tyagi
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 core, winding, bushing, there is a challenge. As per the present capacity of our transformer manufacturers, OEMs like T&R, 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 become 3,98,000 MVA, whereas demand in ’26-’27 itself, it is 4,21,000 MVA. 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.
Mohit Kumar
Sir, one clarification. I was looking also for import, no, right? Import of [Indecipherable] part or import of —
R. K. Tyagi
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 —
Operator
We’ll have to restrict please. Yes. Yes please?
Nikhil Nigania
Yeah. Hi, sir. I am 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 and 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 ’25. 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. And that time took almost, some states adopted in July, some states 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.
Nikhil Nigania
So would you say it’s not a temporary change we have seen? It’s a structural shift we are seeing in ROW getting much better than the last couple of years?
R. K. Tyagi
Yes, yes, because earlier days, there was only, ROW area was considered 30% and now it is not only 30% in rural area, in semi urban it is 45%. And this urban area like Delhi or cities, it is 60% of ROW 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 valuer 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 procedure has been now streamlined.
Nikhil Nigania
Perfect. Thank you sir.
Sumit Kishore
Sir, Sumit Kishore from Axis 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. They 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.
Sumit Kishore
Very clear.
R. K. Tyagi
It is only assemblies. The way it is happening now, it will continue to be like that.
Sumit Kishore
Okay. Okay. Sir, 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 is, 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’ve seen that the number two player now is, almost half the works in hand of Power Grid. At least they claim to be INR750 billion. 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 CEA website, yes, there were issues earlier as I told that by Q2, the results were not good. In Q3 also, you can see that it was only INIR12,000 crores capitalization. So, as of today, we have 3,300 ckm, we have already achieved. Our target, annual target is 5,500 ckm, circuit kilometer, out of which we have achieved, already achieved 3,300 circuit kilometer. In transformers, our target as given to CEA or Government of India, it is 60,000 MVA capacity. We have already achieved 42,000 MVA and we are sure that we will be achieving almost 1,500 to 2,000 circuit kilometer by end of this financial year. So, we will be very close to the target which has been given by CEA or Government of India. And similarly, in transformation also, we will have almost 18,000 to 20,000 MVA capacity will be added in next two months, so we will be very close to 60,000 MVA capacity.
In case of HVDC, you told that, yes, everybody knows that there are only three manufacturers. Hitachi is there, then GE is there, and Siemens are there. So, we have already given a project of this Khavda Nagpur and they are all also executing this Fatehpur to Bhadla project and then Khavda to the South Olpad, all 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, Barmer to South Kala Amb, which will cost almost INR35,000 worth crore project, which is already up for bidding and OBD will be done on 1st April 2026. There are number of more projects like Bikaner V to Begunia, this should be shortly approved. Then there is a discussion about 320 kV, 500 MW Paradeep to Andaman. This is likely to be commissioned by 2031 to 2032. Again, it is almost INR31,000 crores.
Then there are some projects in Brahmaputra basin. It is in Niglok in Arunachal Pradesh, then Namsai, Roing, Silapathar, Gogamukh, Rauta. So, these are some projects, which are likely to be, in any are depending on the hydropower generation in Northeastern region, that the timeline will vary depending on the progress of hydro project, because hydro project time is almost, say, 8 years to 10 years and HVDC project is almost four 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 Kurnool 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. Barmer II to South Kala Amb, it is sure and there should be, I think Bikaner V to Begunia also, it should be possible to be awarded this financial — next financial year.
Sumit Kishore
Next financial year.
R. K. Tyagi
No, not this financial —
Sumit Kishore
FY27, both will be in FY27.
R. K. Tyagi
Yes.
Sumit Kishore
And Bikaner to Begunia is INR300 billion or smaller?
R. K. Tyagi
It is 8,000 megawatt, 6,000 megawatt. Almost, it will be again INR35,000 crores.
Sumit Kishore
Thank you so much, sir.
Puneet Gulati
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?
R. K. Tyagi
Commodity prices means?
Puneet Gulati
Copper prices, aluminium, they’ve gone up. Is it impacting your cost estimates?
Unidentified Speaker
Yeah. As you know, there are about the transmission lines and substations, whatever the transmission contracts we are awarding on a firm 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 a certain PV clause 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 do you think that’s still a few years away?
Unidentified Speaker
Next to five years, it’s already fixed. It’s — they have already given the O&M charges for the next five years. So next revision will be after 2029.
Puneet Gulati
Sir, I meant capacity augmentation for your existing RTM projects. Is there a room for those projects to come in at a higher price?
Unidentified Speaker
Yeah, that we are already doing.
Unidentified Speaker
The capacity, at whatever we are increasing at all there, we are doing it in ad cap which is, suppose the life is over, that we are already, we are putting in the regulator CERC and we will get the tariff on that.
Puneet Gulati
Okay, great. Thank you.
Unidentified Participant
Hi, sir. This is Girish here from Morgan Stanley. Thanks for the detailed presentation. On the construction pipeline, that you have right now, I think it’s about INR1,43,000 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 four or five 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? Market share for nine months in bidding and commissioning — capitalization progression for the backlog right now. And if you can break that up into HVDC and non HVDC and regulated?
Unidentified Speaker
On 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 about another three years. So, Bhadravati 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 of about two to three years of capex. So, whatever is there in the TBCB, 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 are about 50% to 60%. It is there. We are getting a lot of intra-state projects also. So, but then, if you look into the interstate projects, we are maintaining our market share.
Unidentified Participant
And just one clarification, intra-state would be how big today in, either your backlog?
Unidentified Speaker
Backlog means?
Unidentified Participant
Your orders in hand.
Unidentified Speaker
Orders in hand.
Unidentified Participant
How much is intrastate right now?
Unidentified Speaker
Intrastate has a smaller share. Intrastate is just opening with states like Maharashtra and Karnataka opening up. We, because these intrastate are 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 there is significant amount of projects already under the intrastate front, we are also evaluating the, the, the risks, which are associated with intrastate projects and basis that we are going ahead with it. We have, as already as our Chairman has placed it, one of the largest intrastate project in the state of Maharashtra, is what we have recently been successful in it. We are awaiting the LoI for it.
R. K. Tyagi
Like, there was, as per NEP guideline, there was a total three, almost INR3,00,000 crore projects under intra state. And the, 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 INR60,000 crores. Similarly, Karnataka also, maybe INR60,000 to INR70,000 crore and other 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 and Bombay. So, depending on our book position, we will be aggressively or not aggressively bidding for those projects because being intra state project and very difficult projects. So, we will be taking a call depending on the situation.
Operator
Okay. Yes, please?
Prateek Jain
Yes, sir. This is Prateek 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 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 Bhadla III to Sikar II, Bhadla III to Ramgarh, we have Navsari to Padghe, we have Kurnool III to Maheshwaram, we have Ananthapuram 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 Koppal Gadag, we will have Koppal to Raichur, we will have Koppal to Narendra, we will have Beawar Dausa. So, these projects will continue, which will be commissioned in phased 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 Sir. And the second question, so there appears to be some policy hesitation regarding HVDC projects because they are quite costly. So how do we look at this? So, will it impact the capex? Can it impact the capex guidance, let’s say, from FY28 to FY30, and can the overall transmission capex outlook be impacted because of this?
R. K. Tyagi
Like I told that, we have now INR32,000 crores for FY26. We have already committed to Government of India for next financial year, FY27, INR37,000 crores and FY28, INR45,000 crores. So when I’m talking about INR37,000 crores and INR45,000 crores, so definitely our HVDC projects, major expenditure will be during that period. So, once it is commissioned, because this project already, 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 equipment 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.
Prateek Jain
Sure. Okay. Thanks.
Operator
Yes, please.
Namit Arora
Thank you. 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. Sir, my question, I’m Namit Arora from InGrowth Capital. Sir, 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 5 to 10 years. If you could give us some color on that? Thank you.
Unidentified Speaker
[Foreign Speech].
R. K. Tyagi
Thank you. Thank you very much. So, like, Power Grid is a company which was born in 1989 and we have started operations in 1991-’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 talk of any three years. So, there have been additions of new initiatives and we shall help Power Grid in achieving our capex and capitalization and growth of Power Grid like we had in FY24, we had this capex of about INR12,500 crores. Last year, we had INR26,000 crores. This year we are going to have INR32,000 crores. Similarly, we will have capitalization also, like last year, it was not much, but this year it will be INR22,000 crores. Next year, again it will increase. So, the initiatives which we have taken in recent past, 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 the, 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 are meeting with the Chief Ministers of various states. The Power Minister is calling or having meetings with the 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 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 two or three, substations 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. Whenever any project is coming for bidding. So, immediately our land acquisition cell becomes active and they are going to ground and they are talking to various for each projects, we are 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, it is now reality that cranes are to be used for, making transmission line towers or erecting transmission line towers.
We have Portadeck mats that are available that even in rains or where muddy area is there or even this mud is there, in those condition also, we were able to work in rains also. So, the Portadeck mats are being used in last three to four years. So, then, we also started monitoring. We also have those control rooms in each region, that all sites are connected through camera. Earlier we had for operation, these control centers were used for only for monitoring of operation. 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 remember only these initiatives.
Namit Arora
Thank you very much, sir.
Unidentified Speaker
[Foreign Speech] modesty is the virtue.
Namit Arora
Thank you very much, sir. And all the best to you and the entire team. Thank you.
Operator
Super performance. Last couple of questions and then we need to close. So please, yeah.
Shirom Kapur
Hi sir. Thank you. Shirom Kapur from Jefferies. So 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 are scheduled to commission later coming forward, or is it just your overall works in hand expanded? If you could help with that, sir?
R. K. Tyagi
Yeah. If you see from the data that it is INR1,45,000 crores, if we remove INR2,000 crores worth projects for data center and other areas, it becomes INR1,43,000 crores. So, most of the projects are under TBCB only, and the ongoing RTM is hardly INR9,000 crores, INR10,000 crores. And one RTM project, which we are talking is the Leh Pang, which is yet to be launched basically. So, in next two to three years, we will have mainly TBCB projects. So, I can say that 80% to 90% will be TBCB, 10% to 20% will be RTM.
Shirom Kapur
Got it, sir. Thank you so much.
R. K. Tyagi
And you are saying, like what trigger or why suddenly there is an increase in this? Because 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.
Shirom Kapur
Got it, sir. Thank you so much, sir.
Unidentified Speaker
[Foreign Speech].
Operator
Yeah, we can close. Good. May I now request, Shri L. K. Khajkumarji. 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.
L. K. Khajkumar
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 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 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 very much.