POWERGRID shared a detailed performance update following its Q3 FY2025-26 results, announcing its Gross Fixed Assets have surpassed ₹3 lakh crore. The company confirmed strong execution, exceeding the nine-month CapEx target of ₹28,000 crore. Key future drivers include significant investments in Renewable Energy integration, Battery Energy Storage Systems (BESS), and international expansion into Kenya.
Q3 FY2025-26 Performance Overview
During the Analysts’ and Institutional Investors’ Meet held on February 2nd, 2026, Chairman & MD Dr. R.K. Tyagi highlighted significant improvements in project execution compared to the previous year. The company achieved a major milestone by crossing ₹3 trillion plus in gross fixed assets, positioning it as a leading global transmission company.
Financially, for the nine months ended December 31, 2025, Total Income stood at ₹35,714 crores on a consolidated basis, representing a 2% increase year-on-year. Profit After Tax (PAT) saw an 8% rise to ₹4,185 crores consolidated. The company maintained its strong Debt/Equity Ratio at 59:41.
Project Execution and Capital Expenditure
Capital expenditure (CapEx) execution remained robust. The nine-month CapEx reached ₹26,761 crores against the annual target of ₹28,000 crores, with a further commitment to exceed ₹32,000 crores by March 2026. Capitalization for the nine months reached ₹12,915 crores. Critical projects commissioned include the 765 kV D/C Khetri-Narela line, vital for green energy evacuation.
The management announced revised guidance, increasing the CapEx target for FY26 to ₹32,000 crores. Future guidance includes FY27 CapEx at ₹37,000 crores and FY28 CapEx at ₹45,000 crores. Capitalization is projected at ₹30,000 crores for FY27 and ₹35,000 crores for FY28.
Strategic Growth Drivers and ESG Initiatives
POWERGRID is aggressively pursuing future growth areas aligned with India’s energy transition goals:
- Renewable Energy Integration: The company achieved its internal target of meeting 50% of its power consumption through renewable sources by December 2025.
- Energy Storage: POWERGRID has ventured into its first Battery Energy Storage System (BESS) project on a Build-Own-Operate basis in Andhra Pradesh. It anticipates 47 GW of BESS capacity by 2032.
- ESG Focus: Commissioning of Asia’s first 315 MVA transformer using synthetic ester oil marks a step toward sustainable operations. The company is also reducing Right-of-Way (RoW) needs by deploying insulated cross-arm monopoles.
- International Expansion: The company signed a PPP model transmission project in Kenya, marking its first independent transmission project in Africa with a shared risk partner, Africa50.
Addressing Implementation Challenges
Key challenges discussed included securing land and Right-of-Way (RoW). Dr. Tyagi noted structural improvements following revised Government guidelines adopted by states between July and October 2025, which streamlined compensation based on market rates. Supply chain constraints, especially for transformers, remain a focus, with efforts underway to boost domestic manufacturing capacity.
Future Project Pipeline and Bidding Strategy
The current works in hand stand at approximately ₹1,45,513 crore (excluding ₹50,000 crore in projects in progress). The management expects an average of ₹90,000 crore worth of projects to be bid out annually over the next four years. The future pipeline is heavily weighted toward Tariff Based Competitive Bidding (TBCB) projects, expected to constitute 80% to 90% of future CapEx.
Closing Remarks
Executive Director (Corporate Planning), Mr. L.K. Khajkumar, concluded the event by thanking attendees for their constructive feedback, emphasizing the organization’s commitment to sustained growth, adoption of advanced technologies, and network expansion.
Source: BSE
