Power Grid targets Rs 28,000 crore capex for FY26 with around Rs 1.54 lakh crore of projects in hand

Power Grid Corporation of India reported an almost flat net profit of Rs 4,142.87 crore for the quarter ending March FY2025, compared to Rs 4,166.33 crore in the previous fiscal. Revenue from operations grew 2.48 percent in the reported quarter to Rs 12,275.35 crore from Rs 11,978.11 crore in Q4FY24.

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26 Aug, 2025 12:21

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Power Grid Corporation of India has on May 21 shared a capital expenditure target of Rs 28,000 crore for FY26, and expects the figure to cross Rs 30,000 crore depending on project wins and visibility over next few months.

The management was speaking as a part of an analyst call to discuss the Q4FY25 earnings.

This follows the execution of Rs 26,255 crore capex in FY25 and total investments of approximately Rs 68,000 crore between FY21 and FY25.

Chairmand and Managing Director Ravindra Kumar Tyagi said India’s target of a $10 trillion economy by 2032 will involve rapid industrialisation, urbanisation and e-mobility adoption. Energy storage expansion too will be about 47 gigawatt by 2032. Apart from this, growth and demand for pump hydro storage, clean energy and green hydrogen is expected to help Power Grid target growth also, Tyagi said.

Power Grid’s long-term business outlook until 2032 stands at Rs 3.06 lakh crore, including Rs 2.70 lakh crore allocated to interstate transmission projects. Other ventures such as solar generation, smart metering, and data centers will make up additional Rs 7,500 crore.

The push for green infrastructure, including 600 GW clean energy capacity and 47 GW of energy storage - including 36 GW pumped hydro - along with green hydrogen and global grid integration under ‘One Sun, One World, One Grid’ initiative is expected to speed up Power Grid's investment and growth trajectory, Tyagi said.

In terms of projects, Power Grid has works-in-hand worth Rs 1,54,680 crore across various segments, including Rs 1,05,000 crore under Tariff-Based Competitive Bidding (TBCB), Rs 37,000 crore in new Regulated Tariff Mechanism (RTM) projects, Rs 9,580 crore in ongoing RTM, and Rs 2,785 crore in other projects. Looking ahead, the company has outlined CapEx targets of Rs 35,000 crore for FY27 and Rs 45,000 crore for FY2028.

Also Read: Power Grid posts flat net profit at Rs 4,143 cr in Q4, dividend of Rs 1.25

Green Hydrogen Projects Underway

Power Grid is also set to undertake a pilot green hydrogen project at its Neemrana sub-station, aimed at demonstrating round-the-clock clean energy usage through solar-powered hydrogen generation. The Rs 32 crore project is expected to be awarded in June 2025, with a 12-month implementation schedule.

The process involves generating renewable energy from solar during the day, which will then be used to produce green hydrogen. At night, this hydrogen will be converted back into electricity to power the substation’s captive needs, the management explained.

Power Grid Corporation of India reported an almost flat net profit of Rs 4,142.87 crore for the quarter ending March FY2025, compared to Rs 4,166.33 crore in the previous fiscal. Revenue from operations grew 2.48 percent in the reported quarter to Rs 12,275.35 crore from Rs 11,978.11 crore in Q4FY24.

In a board meeting on May 20, the management finalised the sale of entire stake and exit from Torrent Power Grid, a Joint Venture Company with Torrent Power, along with the full stake sale in Sikkim Power Transmission, a joint venture with Sikkim Urja Limited.

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