Buy Power Grid Corporation of India; target of Rs 365: 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 365 in its research report dated August 04, 2025.

Broker Research

August 05, 2025 / 20:51 IST

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

Power Grid is riding on transmission tailwinds, as India is augmenting its transmission infrastructure to integrate renewables into the grid. It racked-up projects worth >INR 1trn in FY25; it won 24 transmission projects in bids with estimated cost of INR 920bn. As a result, its work in hand remains robust at INR 1.49trn as of Jul’25. The bidding activity was subdued in Q1; however, it is expected to pick up in the remaining quarters of FY26. The company has also pushed the pedal on execution with INR 263bn of capex in FY25 and INR 280bn/350bn/450bn of capex planned for FY26/27/28. Capex in Q1 was INR 70bn; however, the commissioning was muted at INR 18bn in Q1 and INR 28bn in 4MFY26. Transmission pipeline remains strong;

Outlook

We estimate another INR 3trn of bidding in transmission in next 3 years with the company likely maintaining its share of >50% in project wins. Maintain BUY with a revised TP of INR 365 as we roll forward to FY28E.

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