Buy Power Grid Corporation of India; target of Rs 360 : ICICI Securities

ICICI Securities is bullish on Power Grid Corporation of India has recommended buy rating on the stock with a target price of Rs 360 in its research report dated November 06, 2025.

Broker Research

November 10, 2025 / 11:37 IST

Buy

26 Aug, 2025 12:21

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ICICI Securities's research report on Power Grid Corporation of India

India is augmenting its transmission infrastructure to integrate renewables into the grid and Power Grid is a leading player in India’s transmission capex story, with >50% market share in transmission bids over the last 2 years. It has raked-in projects worth >INR 1trn in FY25; it won transmission projects with estimated cost of INR 920bn through bidding. As a result, its work in hand remains robust at INR 1.52trn, as of Sep’25 despite subdued bidding activity in H1FY26; bidding activity is expected to pick up in the H2. The company has also upped its execution efforts with INR 263bn of capex in FY25 and INR 154bn in H1FY26. It has guided for capex of INR 280bn/350bn/450bn for FY26/27/28. However, the commissioning was subdued at INR 46bn in YTD FY26 vs. its guidance of INR 200bn for FY26. Transmission order pipeline remains strong over the next three years and we expect the company to maintain its poll position in new bids. Maintain BUY.

Outlook

We have slightly revised our estimates to account for higher expenses booked, mainly for smart meters and changes in depreciation and interest cost for some of the old cost-plus assets. We maintain BUY on the stock with a revised target price of INR 360 (INR 365 earlier), valuing the stock at 16x FY28E EPS.

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