Power Grid Corporation of India Limited (POWERGRID) AI Stock Analysis

• Market Cap: ₹2.61T
• Dividend Yield: 3.21%
• Average Volume (3M): 510.66K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 1.09
• Revenue Growth: 0.40%
• EPS Growth: -1.73%
• Country: IN
• Employees: 8,316
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 3.90
• Shares Outstanding: 9,300,604,000
• 10 Day Avg. Volume: 460,636
• 30 Day Avg. Volume: 510,663
• PEG Ratio: -58.03
• Price to Book (P/B): 2.90
• Price to Sales (P/S): 6.10
• P/FCF Ratio: 22.25
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹311.20
• Price Target Upside: 10.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 72 Outperform
• Price Target: ₹316.00 ▲(12.56% Upside)

Power Grid Corporation's overall stock score reflects strong financial performance and a balanced valuation. The company's robust cash flow and profitability are significant strengths. Technical analysis presents mixed signals, with some bullish momentum but short-term weakness. The absence of earnings call data and corporate events does not impact the score.

Power Grid Corporation of India Limited Business Overview & Revenue Model

Company Description

Power Grid Corporation of India Limited, an electric power transmission utility, engages in the transmission of power in India. It operates in three segments: Transmission Services, Telecom Services, and Consultancy Services. As of March 31, 2022, the company owned and operated 1,72,437 circuit kms of transmission lines, as well as 265 substations with transformation capacity of 4,74,457 mega volt ampere. It also provides consultancy services, including power system planning and techno-economic feasibility studies; environmental and social impact assessment; design and engineering; procurement assistance; project management and construction supervision; asset management; and other services, such as owners' and lenders' engineer service; grid code and tariff mechanisms preparation; legal and technical advisory; and market analysis advisory services, as well as renewable energy certificate mechanism implementation. The company offers its consultancy services to firms, utilities, government departments, and IFIs in Afghanistan, Bangladesh, Kenya, Ethiopia, the United Arab Emirates, Nepal, Bhutan, Myanmar, Kyrgyzstan, Tajikistan, and Pakistan. In addition, it provides overhead optic fiber network services using optical ground wire on power transmission lines under the POWERTEL brand name; and operates EV charging stations. The company was formerly known as National Power Transmission Corporation Limited and changed its name to Power Grid Corporation of India Limited in October 1992. Power Grid Corporation of India Limited was incorporated in 1989 and is based in Gurugram, India.

How the Company Makes Money

POWERGRID primarily makes money through the transmission of electricity, which is its core business. The company earns revenue by charging transmission tariffs to various power generators, state utilities, and distribution companies for the use of its transmission network. These tariffs are regulated and approved by the Central Electricity Regulatory Commission (CERC). Additionally, POWERGRID generates income through its consultancy services, providing technical and management expertise in power transmission and related infrastructure projects. The company also explores opportunities in telecommunications, leveraging its extensive network infrastructure for telecom services. Significant factors contributing to its earnings include government policies on energy infrastructure, demand for electricity, and partnerships with national and international entities for various power projects.

Power Grid Corporation of India Limited Financial Statement Overview

Summary

Power Grid Corporation's financial performance is strong, with high profitability and stable cash flow. The income statement shows effective cost management, while the balance sheet reflects financial stability despite significant debt. Cash flow is robust, supporting operations and debt servicing.

Income Statement

Power Grid Corporation's income statement reflects strong profitability and stable growth. The gross profit margin is notably high due to the nature of the regulated electric industry, ensuring stable revenues. The net profit margin and EBIT margin are also impressive, indicating effective cost management and operational efficiency. However, the revenue growth rate has been modest, which is typical for a mature industry but slightly limits the score.

Balance Sheet

The balance sheet shows a healthy equity base and a reasonable debt-to-equity ratio, indicating financial stability. Stockholders' equity has been increasing, reflecting retained earnings and potential reinvestment into the business. However, total debt remains significant, which is common in capital-intensive industries like utilities but represents a potential risk if not managed carefully.

Cash Flow

The cash flow statement is robust, with strong operating cash flow consistently exceeding net income, indicating high-quality earnings. The free cash flow to net income ratio is favorable, highlighting efficient capital expenditure management. The free cash flow growth rate has been volatile, but the company maintains positive free cash flow, supporting operations and debt servicing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	459.82B	440.73B	442.03B	440.05B	412.71B	393.08B
Gross Profit	408.02B	277.57B	281.26B	279.84B	248.18B	239.64B
EBITDA	398.57B	390.65B	408.91B	393.73B	407.35B	359.06B
Net Income	154.28B	155.21B	155.73B	154.20B	168.24B	120.36B
Balance Sheet
Total Assets	0.00	2.66T	2.51T	2.50T	2.51T	2.56T
Cash, Cash Equivalents and Short-Term Investments	100.77B	100.77B	60.56B	97.69B	50.20B	52.06B
Total Debt	0.00	1.35T	1.27T	1.29T	1.35T	1.47T
Total Liabilities	-926.63B	1.73T	1.64T	1.69T	1.75T	1.86T
Stockholders Equity	926.63B	926.63B	871.45B	830.15B	762.47B	699.36B
Cash Flow
Free Cash Flow	0.00	120.89B	258.86B	311.02B	181.57B	199.49B
Operating Cash Flow	0.00	362.23B	372.89B	380.05B	261.24B	293.12B
Investing Cash Flow	0.00	-235.33B	-131.14B	-71.38B	7.53B	-89.73B
Financing Cash Flow	0.00	-123.57B	-259.03B	-304.50B	-289.67B	-205.21B

Power Grid Corporation of India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 280.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:POWERGRID, the sentiment is Negative. The current price of 280.75 is below the 20-day moving average (MA) of 285.24, below the 50-day MA of 286.04, and below the 200-day MA of 289.61, indicating a bearish trend. The MACD of -0.94 indicates Positive momentum. The RSI at 42.89 is Neutral, neither overbought nor oversold. The STOCH value of 7.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:POWERGRID.

Power Grid Corporation of India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POWERGRID	72 Outperform	₹2.61T	16.89	―	3.21%	0.40%	-1.73%
TORNTPOWER	67 Neutral	₹612.47B	22.01	16.97%	1.56%	-2.95%	16.18%
TATAPOWER	66 Neutral	₹1.25T	30.60	11.04%	0.57%	4.23%	9.91%
NHPC	65 Neutral	₹867.99B	28.34	7.58%	2.21%	13.90%	-15.41%
SJVN	64 Neutral	₹357.57B	51.45	5.77%	1.60%	12.40%	-30.77%
GVT&D	62 Neutral	₹786.70B	99.09	34.31%	0.17%	36.83%	166.22%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

Power Grid Corporation of India Limited Corporate Events

Power Grid Corporation Appoints New Statutory Auditors for FY 2025-26

Power Grid Corporation of India Limited has announced the appointment of new statutory auditors for the financial year 2025-26, as conveyed by the Comptroller and Auditor General of India. The appointment of these auditors is significant for ensuring compliance with the Companies Act, 2013, and maintaining transparency in financial reporting, which is crucial for stakeholders and the company’s operations.

Power Grid Announces Senior Management Changes Due to Superannuation

Power Grid Corporation of India Limited announced the cessation of three Executive Directors, Shri A Sensarma, Shri Thiruchitrambalam Krishnakumar, and Shri Vikram Singh Bhal, due to their superannuation as of August 31, 2025. This change in senior management is part of the company’s adherence to regulatory requirements, and it may impact the company’s operational dynamics and leadership structure.

POWERGRID Wins Bid for Key Transmission Project

Power Grid Corporation of India Limited has been declared the successful bidder under the Tariff Based Competitive Bidding (TBCB) process to establish an Inter-State Transmission System. This project, aimed at strengthening the transmission system at Davanagere for the integration of renewable energy generation, will be executed on a Build, Own, Operate and Transfer (BOOT) basis. The successful bid and subsequent project development are expected to enhance POWERGRID’s operational capabilities and reinforce its position in the energy transmission industry.

Power Grid Corporation’s AGM Resolutions Approved

Power Grid Corporation of India Limited announced that the resolutions proposed at its 36th Annual General Meeting held on August 26, 2025, were approved by the requisite majority. The meeting was conducted via video conferencing, and the voting results along with the scrutinizer’s report are available on the company’s website. This approval signifies continued support from stakeholders, reinforcing the company’s strategic direction and operational stability.

Power Grid Corporation Announces 36th AGM and Leadership Appointments

Power Grid Corporation of India Limited has announced its 36th Annual General Meeting (AGM) scheduled for August 26, 2025, to be conducted via video conferencing. The AGM will address ordinary business matters such as the adoption of financial statements, dividend declarations, and director appointments. Additionally, special business includes the appointment of new directors, including a Whole-time Director and a Government Nominee Director. This meeting is crucial for stakeholders as it outlines the company’s financial performance and strategic leadership appointments, impacting its operational and governance structure.

Power Grid Corporation Hosts Analysts and Investors Meet to Discuss Q1 Financials

Power Grid Corporation of India Limited recently held an Analysts’ and Institutional Investors’ Meet in Mumbai on August 1, 2025. During the meeting, the senior management team discussed the company’s business outlook following the release of its financial results for the first quarter of FY 2025-26. This event provided an opportunity for analysts and investors to interact with the company’s leadership, potentially impacting stakeholder confidence and market positioning.