Power Grid Corporation of India Ltd (NSE: POWERGRID) Q4 2025 Earnings Call dated May. 21, 2025
Corporate Participants:
Satyaprakash Dash — Company Secretary and Compliance Officer
R. K. Tyagi — Chairman and Managing Director
G. Ravisankar — Director, Finance and Chief Financial Officer
Naveen Srivastava — Director, Operations
Vamsi Ramamohan Burra — Director, Projects
Yatindra Dwivedi — Director, Personnel
Analysts:
Vishal Periwal — Analyst
Sumit Kishore — Analyst
Apoorva Bahadur — Analyst
Satyadeep Jain — Analyst
Unidentified Participant
Puneet Gulati — Analyst
Subhadip Mitra — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Power Grid Corporation of India Limited Q4 FY ’25 Earnings Call hosted by Antique Stockbroking. [Operator Instructions] And there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions]
I now hand the conference over to Mr. Vishal Periwal from Antique Stockbroking. Thank you, and over to you, sir.
Vishal Periwal — Analyst
Yeah. Good morning, everyone, and welcome to the webinar with the management of Power Grid Corporation. In the webinar, management of Power Grid will be discussing their quarter four result. Detailed presentation will be provided. And post that, we’ll have Q&A from the participants. And I’d like to thank the management for giving us this opportunity. For further proceeding, now I hand over the line to Shri Satya Prakash Das, Company Secretary, Compliance Officer at Power Grid.
Thank you, and over to you, sir.
Satyaprakash Dash — Company Secretary and Compliance Officer
Thank you, Vishal. Good morning, ladies and gentlemen. I extend a very warm welcome to all of you for this analyst and institutional investor conference of Power Grid Corporation of India Limited. Today, our senior management team will discuss the company’s business and share our performance outlook based on the recently announced financial results.
It’s my pleasure to introduce my senior management. We have with us Shri R.K. Tyagi, Chairman and Managing Director.
R. K. Tyagi — Chairman and Managing Director
Namaskar.
Satyaprakash Dash — Company Secretary and Compliance Officer
Shri G. Ravisankar, Director, Finance and CFO.
G. Ravisankar — Director, Finance and Chief Financial Officer
Namaskar.
Satyaprakash Dash — Company Secretary and Compliance Officer
Shri Naveen Srivastava, Director, Operations.
Naveen Srivastava — Director, Operations
Namaskar.
Satyaprakash Dash — Company Secretary and Compliance Officer
Shri Vamsi Ramamohan, Director, Projects.
Vamsi Ramamohan Burra — Director, Projects
Namaskar.
Satyaprakash Dash — Company Secretary and Compliance Officer
Our Director, Personnel, Dr. Yatindra Dwivedi sir, he has joined from Navi Mumbai substation.
Yatindra Dwivedi — Director, Personnel
Namaskar.
Satyaprakash Dash — Company Secretary and Compliance Officer
Now, I invite our CMD, Mr. R.K. Tyagi to make the opening remarks and presentation.
R. K. Tyagi — Chairman and Managing Director
Good morning, everyone. I want to thank all the connected participants and investors for this investors meet today where we’ll be discussing about Power Grid financial results, financial year 2025. So I will give a small presentation about the performance. I request to put the presentation.
Next, these are disclaimer. Next, presentation will have an overview, major highlights, performance highlights, then growth outlook, sustainability, CSR and awards, which we have received.
Next, as you know, that Power Grid is India’s flagship transmission utility, which was established in 1989. Today, we have government of India shareholding as 51.34%, and FII 26.78% and domestic institutional investors 18.35%. Power Grid has achieved highest market cap in September ’24 where the price of Power Grid share is INR3.66 per share with market cap of INR3.4 trillion. We have been getting MOU rating as excellent since 1993-’94. And we operate about 84% of inter-regional transmission network. Our domestic and international credit has been excellent and at par with the sovereign rating.
Today, we have our Board members, four functional directors, two government nominee directors, three independent directors. I’m happy to announce that today, we have been enriched by women independent directors, Shrimati Sajal Jha, who has recently joined Power Grid Board. So we will have experience of various independent directors and government nominee directors, and it will help us in taking better decisions for Power Grid growth and operations.
Next. We operate in almost all the states and all the districts of the country, and we are playing a very important role in meeting the power demand of the country with transmission lines of 1,533 numbers with 180,239 circuit kilometers and more than 3 lakh towers spread across width and breadth of the country. With 283 substations and 564,961 MVA capacity. Our inter-regional capacity — inter-regional capacity is capacity to transfer power from one region to another region, that means power generated in any part of the country can be transmitted to other part of the country from northeastern region to southern region or from southern region to western region, western region to northern region, northern region to eastern region and vice versa. Our share is almost 84%.
We have been maintaining our system availability 99.82% in financial year 2025. We have HVDC station and very large fleet of 765 kV substations, 400 kV, then dynamic compensation, 20 numbers, static var compensator and SATCOMs, which are helping in grid stability. Wherever we have the land constraints, we use gas insulated substations. So as on today, we have 66 numbers of gas insulated substations. We have more than 3,800 transformers and reactors.
Next. In financial year ’24-’25, we have won 24 numbers of TBCB projects, where cost of projects is about INR92,000 crores and market share 57.34% in terms of NCT cost and about 54% in terms of project wins. The major projects, which we have won is transmission system for evacuation of power from Rajasthan. Phase 4, Part 4, Part A. It is in Bikaner area, power generated in RE area in Bikaner to Siwani, then to Haryana, Punjab and Delhi. It will evacuate power from Rajasthan to various parts of Northern states. Then we have a very important and first TBCB HVDC project won by Power Grid from Khavda to Nagpur, which is about 6,000 megawatt capacity. It will transmit power from Khavda area to Nagpur and then in Maharashtra and other part of country power will be transmitted. Similarly, we have one important project in Kurnool where nearby Kurnool area, RE parks are there. So transmission system for Kurnool area Phase 1, which is for about 4.5 gigawatts. One more project, which we have won — another in Khavda area, phase 4, which is Part B and for 7 gigawatts.
Next. In asset management and operational management, we have been performing excellent always. And this is an indication that we are participating in international benchmarking, being conducted by UMS US, where leading transmission companies of the world participate. In recently announced results in ITOMS 2025, Power Grid has been benchmarked as one of the best utility in the world. We have been benchmarked in quadrant one, which means that our cost is low, our performance is high. So our operational efficiency and reliability is one of the best in the world.
We have been ranked the best performers in transmission lines, transformers, circuit breakers, control and protection. So I just want to inform that the world’s leading utilities from US, South America, South Africa, then Europe and other parts of country, including Australia, China and other countries, they participate in this international benchmarking. So our performance is at par or better than other leading transmission companies of the world.
Next. We have commissioned one of the largest digital substations at 765 kV. This is the first digital substation in the world at 765 kV level. It is a very big station as far as digital technology is concerned. So we have commissioned recently at Navsari, which is for evacuation of power from Khavda area in Gujarat to Maharashtra. And within Gujarat also, Navsari to Magarwada, Navsari to Kala, Navsari to Ahmedabad, Navsari to Padghe in Maharashtra. So it will be a very — technologically excellent substations, which will have less or reduced CO2 carbon footprints.
And it can be commissioned. It can be tested from remote. Online testing can be done sitting from remote area. Experts can sit in US or Europe or any part of the country, and the schemes can be tested from remote. And downtime is also reduced. More important is at 765 kV level, where EMI and EMC interferences are there. So IDs tend to mal-operate because of EMI and EMC interference. So if we use fiber cables and digital technology, the challenge or risk of mal-operation will become almost negligible. So it will be very beneficial for EMI EMC interference.
Next. In performance highlights about project execution, then operational performance, financial performance and other business and commercial performance. I will touch upon these areas. In project excellence, we are considering a large number of projects being executed by Power Grid. So we cannot go in a conventional way. So we have introduced many excellence in project management. We are monitoring all the stations from remote control center in Gurgaon in headquarter, which all stations are fitted with the cameras, and we are monitoring, including CMD power grid and director projects. We are monitoring each and every site shipping from our office. And we have centralized control center at Gurgaon.
Considering shortage of skilled manpower, we have opened three skill development center, one at Malda, one at Banka in Bihar and one at Bassi in Rajasthan, which is close to Jaipur. Both in Malda and Banka, two batches have been already — they have passed their training. And they have been deployed or they have been employed in the industry for working in transmission lines. And Bassi Skill Development Center has been recently opened on 1st May 2025.
Apart from these three, we are also working on 2 more skill development centers, one at Rajgad, one at Rourkela in Odisha. So that shortage of skilled manpower can be minimized because for tower erection, for transmission line, we require skilled manpower to work at height with tower height for 765 kV lines can vary from 50 meters to maybe 100 meters. So we require a very, very skilled manpower. So for that skill development center will help in a big way. We have dedicated ROW and land acquisition cells at Gurgaon, where all the ROW issues being faced by site are addressed from here. We are sending our expert team from corporate office to various sites to take care of ROW and land acquisition issues.
For strategic equipments like transformers, GIS, conductor, insulator, tower material because there is a huge demand for these equipments, so we have adopted bulk procurement strategy to procure in advance so that we have these equipments well in advance to take care of any project or execution. So that once we win the project, the time line for which may be 18 months or 21 months or 24 months. The procurement of vital equipments like transformers in 18 months or 21 months will not be possible. So we are procuring in advance these equipments.
We have also introduced advanced tower erection techniques like for — we are using cranes for tower erection at 400 kV and 765 kV level. And for power line crossing and important crossing, we are using drone-based stringing. And in hilly area also, drone-based stringing is being used. For expediting substation construction, we are using prefabricated firewalls for transformers and reactors and also cable trenches are also prefabricated so that execution time at site is minimized.
I’m happy to announce that in the financial year ’24-’25, we have commissioned Sikar 765 kV substation in about nine months to 10 months from date of acquisition of land, which is, I think, which maybe world record that in nine months or 10 months, any 765 kV substation can be commissioned that, but our project management has shown that it is possible that we can commission in nine months to 10 months. One more substation, which we are targeting to better our performance from Sikar at DOSA, we are expecting, we are trying to commission even less than nine months, which is expected to be commissioned maybe in one month or two months, but we are excelling in project management.
Similarly, we are using like in rainy season or where there may be a constant movement of this like crane or porta decks — sorry, the proclainer or other heavy equipments. So we are using porta decks. These are the mats on which these heavy equipment can be moved from one place to another place. So that movement of these equipments is easy. And even we can work in rainy season for erection of towers, erection of equipment and various execution works. So these techniques we have introduced in our project management.
Next. With the result of these project management technique, we have demonstrated that one 765 kV complete tower can be erected in one single day. So 765 kV DA type tower having weight of about 37.4 metric tons was directed in a single day in Banaskantha to Ahmedabad line. Normally, the output of erection gang is about 8 metric tons to 10 metric tons in a day, but our project management has shown that we can even achieve 37.4 metric ton in a single day. So this is — this may be world record that we could erect one 37.4 metric ton tower in a single day.
Next. Last year, as committed, we have surpassed our target of about INR20,000 crores. So we achieved INR26,255 crores capex in financial year ’24-’25. In capitalization also, we have increased from INR7,618 crores to INR9,014 crores.
Next. The major elements which have been commissioned, as I already mentioned that Sikar 765 kV/400 kV Sikar-II substation was commissioned in about nine months to 10 months from land acquisition. Then Kurnool-II in Andhra Pradesh, 765/400/220 kV and 765/400 kV Navsari with digital technology and 400/220 kV at Navi Mumbai, then Khavda Pooling KPS-II in Gujarat. These five stations have been commissioned in financial year 2025.
Important transmission lines, 765 kV from Fatehgarh-II to Bhadla-II, then Bhadla-II to Sikar II and 765 kV Sikar II to Aligarh, then 765 kV Kurnool III to Kurnool new. In 400 kV, from Navsari to Magarwada, Sikar II to Neemrana, Jamnagar to Jam Khambaliya, Raipur to Dhamtari, Banaskantha to Sankhari. These are major elements, which we are commissioned apart from many transformers and reactors commissioned at various stations. I just want to inform that at Bikaner II in last financial year, we have commissioned six 400/220 kV 500 MVA transformers in a single financial year, which is also maybe record that six transformers were commissioned.
In operational side, we — as I told that we achieved 99.82%, which is more than 99.75% at which we are normally getting incentive after — because after 99.75%, normally, incentive is capped at that particular value. But our performance has been always good, and we are always achieving more than 99.75%. In terms of tripping per line per year, also continuously, our performance is improving. And last year also, we have 0.27 trippings per line per year, which indicate that our one transmission line trips in almost four years. So 0.27 per year means almost in four years any single transmission line will trip.
In GRIDCON 2025, International Conference Cum Exhibition was arranged by Power Grid, which has witnessed about 10,000 participants with 3,000 delegates, representation from 32 countries. We — about 160 papers were presented. We had in exhibition 150 exhibitors, and nine start-ups and 15 student pavilions were there. About 86 learning hours were there. And this GRIDCON 2025 was a unique platform for key stakeholders to explore the future of India’s power transmission sector aligned with global energy transition trends and discuss transformative technologies. It was attended by our honorable Power Minister, Shri Manohar Lal ji; and Minister of State for Power, Shri Shripad Naik ji, then our Secretary Power, Chairman, CEA apart from other dignitaries from India and various countries.
Next. In technology development, we have, again received one patent on condition monitoring of transformers and reactors. Our transformers and reactors are fitted with the sensors. And this data is communicated to our — this software where we can have online condition monitoring assessment of transformers and reactors, so we got patented in this particular application. It is a basically centralized monitoring and diagnostics of large fleet of transformers and reactors.
Next. In substation inspection, robots have been put into operation. One robot has been developed in association with IIT Kanpur and which has been used at our 400 kV substations. Now we are deploying this robot at our 765 kV/400 kV Jhatikara substation, which is close to Delhi.
Next. Further in technology development, we are working for SF6 free circuit breakers at 145 kV level, already pilot project is already taken up. We are also considering 220 kV and 400 kV. Then super-hydrophobic coating of insulators for enhancing the self-cleaning and anti-icing to reduce the maintenance of insulators. Then, non-destructive testing of transmission line tower members. The mobile GIS for 400 kV, 132 kV and 220 kV. So this mobile GIS will help in case of any natural calamity or any, suppose, earthquake or cyclone is there and a particular bay is damaged, so power supply can be restored at very fast that it can be maybe six hours to eight hours, we can restore the power supply by using mobile GIS bays.
Then we are also working in wireless strain gauge. Technology for evaluation of strain in critical members of towers, then heavy lift programmable drones to support transmission infrastructure development in remote areas, especially in hilly area that cement bags or the tower members can be transported by this heavy lift drones.
Next. One more technology development, especially in area of transmission line to reduce ROW and to reduce cutting of trees, we are using insulated cross arm at 400 kV. And with two parties are already developed. This one is expected to supply in May end, which will reduce the ROW from, say, 46 meters to about 36 meters. So it will reduce the requirement of tree cutting and it will save environment-friendly technology. We will have compact design, horizontal B-strings again for ROW requirements. So these technologies, we are expecting to deploy in financial year ’25-’26.
Next. One more initiative we are taking, especially in J&K, in Zojila pass, where 12-kilometer underground cable is being laid between Minamarg and Zojila top to bypass the over headline because whenever any avalanche is there, so that leads to damage of transmission line towers. And this particular line from Srinagar to Drass to Kargil, then Khaltse and Leh. It is a single line, if it is damaged, then power supply to Leh is affected. So we are laying this cable in that particular area so that power supply to Leh is maintained all the time.
Next. In financial performance, standalone in quarter four, we have revenue or income of INR12,482 crores, PAT at INR4,336 crores. In consol basis, we have INR12,591 crores and PAT at INR4,143 crores. In case of financial activity for ’25, our total income is INR46,325 crores with profit of INR15,354 crores. On a consol basis, our income is INR47,459 crores against INR46,913crores last year and PAT also INR15,521 crores in financial year ’24-’25.
Next. So these are various details of our revenue on consol basis, transmission charges, consultancy charges, telecom and other heads, how we have performed in last financial year. And standalone also, these are the details, which have been already published and these are the details in various heads.
The financial performance, we have — next, please. About INR2,90,715 crores as gross fixed assets. Capital work in progress is about INR36,341 crores. We have debt of INR1,30,965 crores. Net worth has increased from INR87,145 crore to INR92,663 crore. Our earnings per share is at INR16.69. Book value per share is INR99.63. Debt-to-equity ratio is 59:41 and return on net worth is 16.75%. These are the details of income and where various heads, how we have performed in terms of income from operations and differential tariff and other heads. These are also mentioned in our details given — already published.
Next. In Telecom segment, first time we have crossed INR1,000 crores income. We have achieved INR1,128 crores as against INR910 crores last — in last financial year. Total order received INR412 crores. New customers added 75 numbers. Our backbone availability is again 100%, and major projects under implementation is a data center at Manesar, and then Zone II data center at Chennai then government projects, ERNET and NKN, National Knowledge Network.
Next, please. Yeah. In consultancy assignment, we have revenue from operations INR799 crores against INR553 crores. In International, we have 16 ongoing assignments and eight orders during financial year 2025. In domestic, we have 80 ongoing assignments and 55 new orders during financial year 2025.
Next, please. In commercial, we have a billing of INR36,877 crores with realization of INR38,284 crores, realization at 103.8%. Our outstanding at the end of quarter is about INR3,388 crores.
Next, please. Then in terms of investor-centric growth, we have this increase of market cap, about 2.4 times what we had in financial year ’21. In price CAGR from FY ’21 to ’25 is 24.4%. Dividend paid during financial year on cash basis is INR10.5 per share. Our market capitalization is also increasing. So at the end of financial year 2025, it was our — this was INR2,70,136 crores with the share price of INR290.35 per share.
Next, please. Investment or capex, we have this five-year CAGR, about 23.5%. Last year, we have achieved capex of INR26,255 crores. And from financial year ’21 to ’25 INR68,000 crore projects we have had capex in various areas.
Next. If we see growth outlook, sectoral outlook, then business outlook and works in hand and capex outlook. As you know that India is targeting about $10 trillion economy by 2032 with rapid industrialization, urbanization and e-mobility adoption. Energy storage expansion will be about 47 gigawatt by 2032. Pump hydro storage is about 36 gigawatt, then clean energy commitments more than 600 gigawatt by 2032 and with present capacity of 71 gigawatt additional electricity demand on account of green hydrogen production by 2032. Then global energy integration with the vision of our honorable Prime Minister, One Sun, One World, One Grid for international power connectivity. So these are sectoral outlook, which will help us Power Grid growth also.
As of now, we have business outlook 2032, about INR3,06,600 crores, out of which about INR2,70,000 crores will be in inter-state transmission and balance will be in other areas, including intra-state transmission system. Other business, we have about INR7,500 crores, including solar generation, smart metering, data center. So put together, we have about INR3,06,600 crores as of now, which is likely to increase, but as of now, it is INR3,06,600 crores. Today, we have about INR1,54,680 crores works in hand, in TBCB INR1,05,000 crores, new RTM about INR37,000 crores, ongoing RTM INR9,580 crores and others INR2,785 crores. So put together, we have works in hand about INR1,54,680.
Next, please. Capex outlook, we are targeting INR28,000 crores in financial year ’25-’26. In financial year ’26-’27, INR35,000 crores. Financial year ’27-’28, INR45,000 crores. As far as INR25,000 crores, INR26,000 crores, it is as of now, whatever visibility we are seeing as of now, but it is likely to increase to more than INR30,000 crores. So that exact figure we can tell after three months once we see the progress and other projects, which we are likely to win. So today, we are committing about INR28,000 crores, but it is likely to increase.
Next. In sustainability and CSR, we have a target of 50% of electricity consumption from RE. So we have already achieved 36% electricity consumption from RE. And we have target to achieve 50% before December 2025. And net water positive by 2030 and zero waste to landfill status by 2030, net zero emission by 2047.
I just want to announce that we have now dedicated department and dedicated group, which is working mainly for ESG and net zero. So we are targeting 2047 at net zero Power Grid. In achievements, in Scope 1 emissions, we have achieved 40.61% reduction. And in Scope 2, 5.23% reduction and 21% increase in emission offset compared to FY ’24.
Next, please. In the sustainability, we have now first ICT with ester oil in power grid 132/33kV, 10 MVA ICT at HVDC Pusauli has been successfully charged after retro filling with natural ester oil. Earlier, we had two reactors, one 400 kV shunt reactor with the natural ester oil at Maithon substation, and one 132 kV shunt reactor at Aizawl in Mizoram, which were earlier fitted with — which were earlier fitted with the natural ester or vegetable oil. So we are always working for sustainability areas. And one more transformer, which is likely to be commissioned in financial year ’25-’26 is 400 kV/220 kV 500 — 315 kV then we had ICT, which is likely to be commissioned in financial year ’25-’26.
We have commissioned 85-megawatt solar PV power project at Nagda which was commissioned in April 2025, which has already started generating power and we are selling electricity about 70% to 80% in GDAM, Green Day Ahead Market and realtime markets in power exchange. We also have a pilot project of Green Hydrogen at our Neemrana Substation, which is — which will meet the captive load using solar-powered green hydrogen. So we will generate RE power from solar, then this RE Power will generate green hydrogen. And in night time, this green hydrogen will again convert to electricity, which we will use for our captive use at Neemrana. The project cost is about INR32 crores, and this is likely to be awarded in June 2025 with the implementation schedule of about 12 months.
In CSR activities, we are considering our — this CSR, we have Vishram Sada at AIIMS, Bilaspur, 250 bedded which was inaugurated and foundation stone was laid by our honorable minister, Shri JP Nadda ji, BJP President. Then, Vishram Sadan at Gorakhpur — AIIMS, Gorakhpur, which was also — foundation stone was laid by honorable CM of UP. Then we have this skill development center at Bassi, Banka, Malda, these are also under CSR. Then we have this THIRA, meaning Waves is a skill development program for unemployed youth from Trivandrum fisherfolk communities offering divemaster and rescue divers training to boost marine employment opportunity. This also we have taken up.
Then we have won some awards and recognition. The CMD Power Grid has been conferred with prestigious CBIP Individual Award for outstanding contribution in power sector. Our Director of Finance has also been recognized as Best CFO and Energy & EPC at the ASSOCHAM 3rd Vibrant Bharat CFO Summit & Awards. Director Operations, Power Grid has been conferred with GEEF Global HSE Leader of the year 2025. Then, Power Grid has also been conferred with World Congress on Disaster Management, Disaster Risk Reduction 2024 Award in category Response during disaster and emergencies.
Our women leaders also have been recognized. We have been recognized as Best Enterprise Maharatna company, second runner up at 35th National meet of Women in Public Sector. Our Executive Director Manju Gupta has been honored with Corporate Visionary Nari Award at Ujjwala Summit 2025. Then Power Grid has also been conferred with Economic Times Human Capital Awards 2025 for excellence in HR Digital Transformation & Excellence in creating culture and continuous learning and upskilling.
Thank you very much. Thank you.
Operator
Sir, should we begin the question-and-answer session?
R. K. Tyagi — Chairman and Managing Director
Yes, please.
Questions and Answers:
Operator
Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] Our first question comes from the line of Sumit Kishore. May I request you to unmute your line and go ahead with your question, please.
Sumit Kishore
Good morning. Am I audible?
Operator
Yes, sir.
Sumit Kishore
I’m Sumit Kishore from Axis Capital. My first question is you have had a terrific year in terms of TBCB project wins of almost INR92,000 crores. What is the transmission bid pipeline for the — for this current financial year? And secondly, you had a capitalization miss versus what was guided earlier. So if you could state what is the picture today in terms of the spillovers of commissioning, which have happened maybe early this fiscal, and what is your guidance for FY ’26-’27 in terms of capitalization, given that you have provided capex numbers for FY ’26, ’27, ’28? That is the first part of the — yeah. Thanks.
R. K. Tyagi
Yeah. For — thank you, Kishore. Like as we mentioned that in financial year, ’24-’25, we had capex of about INR26,000 crore plus and INR9,000 crores plus capitalization. So we had a plan for about INR16,000 crores to INR17,000 crores capitalization. So because of this, there are challenges of ROW and supply issues and skill manpower, we are facing problems of skilled manpower. And then there was election also in central government. So because of that, there have been some delays especially ROW issues in Rajasthan, Haryana, Delhi and Gujarat, so that led to some delays in this capitalization of — or commissioning of some projects, which are now planned to be commissioned in quarter one of FY ’25-’26. And some may go in quarter two also. In financial year ’25-’26, we are expecting about INR23,000 crores to INR25,000 crores capitalization.
Sumit Kishore
Sir, also on the bid prospect pipeline for FY ’26.
R. K. Tyagi
Yeah, it is a pipeline, the projects which are already in pipeline is about INR45,000 crore to INR46,000 crore, out of which about INR34,000 crore projects are already under bidding and INR10,000 crore, INR11,000 crores projects are yet to be bid. So INR46,000 crore you can say as of now.
Sumit Kishore
But this is significantly lower after you won almost INR92,000 crores of contracts last year. So maybe this would be a slower year in terms of building new jobs into your works in hand.
R. K. Tyagi
This is as of now, but more projects are in pipeline, visibility of those projects will be seen after maybe two, three months.
Sumit Kishore
Sir, one question at the sector level is that we have seen that there was a bunching up of a lot of RE projects where LOAs were awarded, but PPAs were not signed and power demand so far this financial year has also started on a weak note. So in the event, what is the impact on Power Grid’s capitalization in case there is a large pipeline of projects where in RE, which were planned to be added, but those are obviously getting delayed? So how does that impact works in hand for Power Grid? That’s the question.
R. K. Tyagi
Our transmission line is not dependent on whether PPA is signed or not. Normally, we are given any project for which a separate time line is given. Once we commission any RE project or any project for that matter, we start getting our tariffs. So we are not having any risk of whether RE is delayed or PPA is signed or not. The Power Grid as such will not be affected by any of these issues.
Sumit Kishore
Fair enough. So just if I may ask one last question. So your ROE has dipped by about 100 basis points at the consolidated level this year with the various issues that we have been discussing so far. Has the ROE stabilized here now with all the issues baked in and what is the outlook? And the capital structure, which is at 59:41. So how do you see this evolving? So given your dividend per share has also come off at INR9 on a year-on-year basis. Thank you.
R. K. Tyagi
As far as dividend is concerned, like we have — as you know, that we have more projects now. So we require equity for our project execution. So that is why our dividend payout is reduced by about INR2 — INR2.25. So we will require more money in future. So maybe next year also, there may be some change from INR9. It can further reduced depending on the capex, which we are expecting, say, about INR28,000 crores to INR30,000 crores. So that was the reason why we have reduced our dividend payout. As far as this — this ROE impact, last year, we had INR15,500 crores. And this year, also, our profit is again in the same range, but our net worth has increased from INR87,000 crore to about more then INR90,000 crores. So that is the reason why you can see that impact.
Operator
Thank you. Mr. Sumit, may we request that you return to the question queue for follow-up questions. Thank you. [Operator Instructions] Our next question comes from the line of Apoorva Bahadur. May I request you to unmute your line, introduce yourself and go ahead with your question.
Apoorva Bahadur
Hi, sir, thank you for the opportunity. Quickly, sir, I wanted to understand and know your view over here, you highlighted that the company has INR92,000 crores worth of projects in FY ’25. I assume this is the NCT cost and how much higher do you expect the actual cost to be over here?
R. K. Tyagi
Yeah. It is not NCT cost. It is the cost which we are having our — it is our internal cost, at which we have awarded the projects.
Apoorva Bahadur
Okay. Sir, secondly, do — has there been any change in the competitive intensity for TBCB projects for the bids now, given that the overall pie had increased significantly last year?
R. K. Tyagi
Can you repeat, please?
Apoorva Bahadur
Sir, are you seeing any material change in the competitive intensity in bids this year?
R. K. Tyagi
No, intensity in the sense that like we are not going below a certain level that we have fixed a particular level that were maybe more than 12% or 13% ROE. So we are maintaining that and maintaining that whatever projects we are able to win, we are winning and our percentage is very good. As you can also appreciate INR92,000 crore projects in a single year is not a small thing. So — but still, we are maintaining our ROE above the particular level.
Apoorva Bahadur
Thank you, sir. Sir, last question from my side. on the HVDC projects, can you give us some visibility beyond the three or four projects that are known as of now? How many more are under planning?
R. K. Tyagi
As far as this HVDC project, like we have this Khavda to Nagpur, then we have Fatehgarh to Bhadla. We have this Leh to Pang. Then, we have one more already under bidding from Khavda to South Olpad. Then, one more project from Rajasthan to Maharashtra. Then, one more project in Andhra from Kurnool area to Vizag. So these are, as of now, within India, maybe outside India, maybe between India to Singapore via Andaman. Then, maybe from India to Sri Lanka and India to Myanmar. Apart from this side, One Sun, One World, One Grid may be from India to Oman, UAE and other countries.
Operator
May we request you return to rejoin the queue as several participants are waiting for their turn. Thank you. Our next question comes from the line of Satyadeep. Please go ahead.
Satyadeep Jain
Hi, am I audible?
Operator
Yes sir, please go ahead.
Satyadeep Jain
Just first question on the delays that were seen in the fourth quarter. I think elections and all, I know happened towards the earlier part of the year. But in 3Q, management was guiding to INR11,000 crores of capitalization in 4Q. So I just wanted to understand what is leading to some of these delays. And given the large difference between capex and capitalization, obviously, you’re incurring the capex, but there is some delay in commissioning of the project, which means you’ve already acquired land, maybe already base suppliers, but maybe there is some delay in actual commissioning. And how does it impact your actual commissioning cost and time line versus what you were expecting. So maybe when you built a project, you had a certain capex estimate and certain time line. How much time are you seeing for commissioning of these AC lines, TBCB projects now? And how much cost inflation are you seeing versus the initial expectations you had for some of these? That’s the first question.
R. K. Tyagi
Let us accept that there are challenges of ROW and because everyone, including landowners and farmers, they are demanding more and more money. Our government of India is also considerate to their demands. And you may be knowing that in June 2024, there was a ROW guideline issued by government of India. Considering requests or demands or resentment of farmers, so from 15% ROW land compensation, it was increased to 30%. And on tower base, it was increased from 85% to 200%. And these schemes were like — these policies, ROW compensation policies are to be adopted by various states. So there is some delay between adoption of these guidelines from issuance by Government of India to adoption by state government. So that leads to a delay in execution or completion of transmission projects.
Then again, in — there was unrest in Haryana and Delhi. Again, in March 2025, Government of India has again increased compensation, and from 200% and this ROW has increased to 60% from 30% in urban areas and in semi-urban areas, it has increased to 45%. And now they have clearly indicated how to give the price to the farmers or cost to the farmers for land compensation. So that methodology also shared by government of India, guideline has been issued. As per that, two valuers will be there, one by the transmission developer, one by the farmers. And that — they will decide the market rate. And we will have to pay land compensation as per the market rate.
So there will be — there has been some delays because of these ROW compensation policies issued by government of India and adoption by state government. So in ’24-’25, there has been delays in some projects. But we are expecting that in ’25-’26 since already guidelines are in place. So the execution will be much faster as compared to FY ’24-’25. And as far as you are seeing impact on the return on equity or our — the return, what will happen to time overrun and post-overrun.
So we are likely to get these claims under change of law because, as on date, when we got these projects, the compensation policies were issued — this compensation policy issued in 2025 — October 2015, sorry. So we have considered that compensation policy, but now compensation policies has been changed. So whatever differential amount will be there, will be claiming under change of law. So we are not expecting impact of any delay or our expenditure incurred on these schemes. So we are not expecting much impact. There may be some impact but not much impact.
Satyadeep Jain
Okay. Thank you for clarifying that. Second question on the pipeline. So in the INR3 lakh crore pipeline that you have, you obviously have INR2,70,000 crores of ISTS, that I’m sure there’s some maths involved in that based on NEP estimates and some market share. But also just on that, given the previous speaker also asked the question on that, if the — ultimately the DISCOM has to bear that cost, if you commission the project, but there is no RE, would you sense some pressure from DISCOMs to delay some of these projects, if the RE player has requested connectivity under G&A, but there are some delays? Would you not expect some requests from DISCOMs to delay these projects? And given there is change in G&A regulations on battery, solar or non-solar, do you see some risk to these estimates you have, just wanted to see sensitivity and maybe is there any risk to these capex expectations that you have?
R. K. Tyagi
As we have indicated that a $10 trillion economy by 2032 and in transmission itself as per NEP issued by government of India, National Electricity Plan for transmission, about INR10 lakh crore are to be spent in transmission system development. So out of which, INR3 lakh crore is, I think it is very, very optimistic figure. So it may be more. So we are not seeing any challenge or any issue in achieving this target.
Operator
Thank you. Our next question comes from the line of Mohit. May I request you to unmute your line and go ahead with your question, please.
Unidentified Participant
Yeah. Good morning, sir. Am I audible?
Operator
Yes, sir. Please go ahead.
R. K. Tyagi
Yeah.
Unidentified Participant
Sir, my question is what is the status of the HVDC Leh-Ladakh. And why there is a delay in awarding of the equipment? That’s the first question.
R. K. Tyagi
Yeah. Please, carry on.
Unidentified Participant
My second question is on the, what is the status of Paradeep-Andaman link. I think it was supposed to be awarded to us on a cost-plus basis. Are you expecting this project to get added to the pipeline in FY ’26?
R. K. Tyagi
Okay. As far as the Leh-Ladakh project is there, it is already being executed by Power Grid. We have already acquired land at Leh. And our — the infrastructure development work is already going on there. And we are also working for a line between Pang to Leh. So that’s also there. But as far as award of HVDC is concerned because you will appreciate that this is a very — height is about 4,500 meters to 5,000 meters. So there are technological challenges.
And worldwide, there is no experience at this height. So that have been concerns raised by various bidders, and there have been some discussion with our experts. We have technical experts and adviser team. So we are addressing those issues with our prospective bidders. And now we are now expecting that it will be awarded somewhere in — we have already got the bid, which is under evaluation. And in quarter two, it is likely to be awarded. So it will not be — I think it will not be further delayed after quarter two.
For Paradeep Andaman and Singapore, preliminary studies have been already done. And Government of India is working out the capacity between this Paradeep to Andaman. And same line — HVDC line is likely to be like maybe between Singapore to India. So same line will continue to Singapore also. Those modalities are being worked out by Government of India. And then — once the Government of India comes out with a clear methodology, then we will consider this project also. So as of now, there is no clear visibility. Maybe in quarter two, there will be some clear visibility by government of India.
Operator
Thank you. Due to time constraint we will move to the next question. Our next question comes from the line of Puneet. I request you to unmute your line and go ahead with your question, please.
Puneet Gulati
Yeah. Thank you so much. My first question is if you can talk what is gap between the NCT value and your own estimates for the projects that you have won?
R. K. Tyagi
Gap between?
Puneet Gulati
The NCT value and your own internal estimates of INR92,000 crores that you’ve talked about in the projects that you’ve won.
R. K. Tyagi
Yes. Except for HVDC project, which we have between Khavda to Nagpur, so maybe others are almost matching maybe — within 5% variation maybe there. But in this particular case, cost — NCT cost is about INR24,000 crores, but actual cost may be INR33,000, INR34,000 crores. Otherwise, other projects are within 5%.
Puneet Gulati
Understood. That’s very helpful. And secondly, you talked about pass-through of compensation under change in law, would you also get the benefit of — or the additional cost overruns that you — that happened in terms of delayed execution because of ROW issues, or is the compensation limited to only the value of the land?
R. K. Tyagi
Normally, this also IDC because it will impact IDC. So we are likely to get this also, and we will claim also that whatever — because of delay there have been project overrun and IDC has increased. So we will claim that amount also.
Operator
Thank you. Our next question comes from the line of Subhadip Mitra. May I request you to unmute your line and go ahead with your question, please.
Subhadip Mitra
Good afternoon. Am I audible?
Operator
Yes, sir. Please go ahead.
Subhadip Mitra
Thank you for the opportunity. Sir, my first question is with regard to the HVDC TBCB pipeline. So the South Olpad project is expected to come into the tendering phase by when?
R. K. Tyagi
Yes, it is already under — RFP has already been issued and bids are likely to be submitted very soon. So there was a date of 16th May, which has been increased now because of some — they’ve got some queries from the prospective transmission system. So it will be like — a tender is already out and RFP is already out, and it will be — very soon it will be finalized.
Subhadip Mitra
Understood. And secondly, are we seeing more HVDC projects, maybe the Barmer project or any other LCC based projects coming up after South Olpad?
R. K. Tyagi
South Olpad is VSC and Barmer to Maharashtra, it is likely to be LCC as of now. And this — the Andhra Pradesh also Kurnool to Vizag is also LCC. VSC as of now, only between two countries like if it is India to Oman or Oman to UAE or maybe between Singapore to India, that will be VSC.
Operator
Thank you. Our next question comes from Atul Tiwari. May I request you to unmute your line and go ahead with your question.
Unidentified Participant
Yeah. Sir, any idea about likely capex on Paradeep, Andaman, Singapore link, what will be the rough size of the project?
R. K. Tyagi
As per initial estimates, it is 30 — yes. So it will be — I cannot say exactly, but it will be INR30,000-plus crore.
Unidentified Participant
And what will be the capacity roughly for that capex?
R. K. Tyagi
Capacity, if it is, say, between Singapore to India, it may be about 2,000 megawatt. But between Andaman to Paradeep, it will be about, say, 250 megawatt.
Unidentified Participant
Okay. And sir, in terms of the TBCB pipeline, you did mention about INR45,000 crores as you can see right now. But if you take a slightly longer term view FY ’27 and ’28, over next three years, what is the likely pipeline for TBCB that you — that will be bid for?
R. K. Tyagi
Yeah. So as far as this NEP — as per NEP pipeline, more then INR9 lakh crore projects are to be completed by in 2032. So out of which already INR3 lakh crores projects are already — they have been already allocated. So about INR6 lakh crore projects will — are still to be allocated, which are to be completed by 2032. So considering execution time of about two to three years. So by ’29, all balanced projects are to be allocated. So you can consider that in the next four years. So these all balanced transmission projects are to be allocated. So you can calculate yourself.
Operator
Thank you. Our next question comes from the line of Sumit Kishore. May I request you to unmute your line and go ahead with your question.
Sumit Kishore
So thank you so much for the opportunity once again. So my question is that in terms of the in terms of your capex over FY ’26 to ’28, it adds up in terms of guidance to about INR1,080 billion as compared to your works in hand of roughly about INR1,546 billion. So in this INR1,080 billion, how much is the capex that you are planning to incur for the HVDC projects, which have typically a longer gestation period and I’m referring to the larger ones, including the Leh project?
R. K. Tyagi
Yeah. We have mentioned that we have about INR1,54,000 crore projects in hand, to — and say, about INR28,000 crores in FY ’25-’26 and INR35,000 crores in ’26-’27 and ’27-’28, INR45,000 crore, which adds up to, say, about INR1,08,000 crores or INR1,10,000 crores. So balance will be for HVDC, which will be this Kaithal to Pang and HVDC Khavda to Nagpur. So majority of this capex for HVDC will be after two years only. So we will have some maybe 20% or 30% up to ’27-’28, but balance will be after two years only.
Sumit Kishore
Sir, what will be the total value of the HVDC contracts under VSC or LCC route that you’re looking to award two contractors in the next one year or next two years, typically VSC and LCC, if you can give separately, that will be very useful for FY ’26 and FY ’27.
R. K. Tyagi
We can tell only like we have only one project in hand, which is Leh and Kaithal and balance this Khavda to South Olpad, it is not in hand. So we cannot talk anything about that unless until we win that. So you know that this Leh and Kaithal is INR20,000 crore plus. So out of which maybe INR12,000 crores, INR13,000 crores will be for HVDC portion. Balance will be for transmission line. So that only I can confirm as of now. Balance — once we win these projects, then only we can say LCC or VSC or others.
Operator
Thank you. Our last question for the day comes from the line of Puneet. May I request you to unmute your line and go ahead with your question, please.
Puneet Gulati
Yeah. Thank you so much for the opportunity. If you can also talk about the potential opportunity on the inter — intra-state transmission side. Is that opening up? Or is it still largely done by state transcos?
R. K. Tyagi
No. Intra-state, as per NEP, they have shown that they have indicated that there will be expenditure or capex of about INR3 lakh crore plus in intra-state. So now unless until they go under TBCB execution, then only it can be achieved. So otherwise, INR3 lakh crore will be very difficult to be achieved by various states. So UP, MP, then Rajasthan, then Odisha, Maharashtra, these states have already come out with this intra-state TBCB projects.
So we are also participating with the same interest as compared to inter-state TBCB project. So we are also expecting that we will also win some projects in intra-state transmission system also. So there is no difference between inter-state transmission TBCB project and intra-state TBCB project. And more and more states are talking these days by — for TBCB projects. So they will come in many numbers. All the states should follow this intra-state TBCB.
Puneet Gulati
Any size you can give for this current tenders?
R. K. Tyagi
As of now, no, I may not be in a position to share any figure.
Puneet Gulati
Understood. That’s very helpful. Thank you so much.
Operator
Than you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for closing comments. Over to you, sir.
R. K. Tyagi
Yeah. I once again thank each and everyone of you for joining and taking interest in Power Grid. Power Grid management is committed to achieve all the targets, which we have mentioned today. And regarding project efficiency, operational efficiency, we will be working very hard to achieve all the targets given by Government of India. Thank you once again for showing your interest. Thank you.
Operator
[Operator Closing Remarks]