Power Grid Corporation of India (PWGR IN) – Q4FY26 Result Update – Strong transmission pipeline; capex cycle accelerating – BUY
Published on 18 May 2026
We hosted PWGR management for an interaction with investors. Growth visibility remains strong with ~Rs1.7trn order book/work-in-hand (incl CWIP) and >Rs1.1trn near-term bidding pipeline, led by large renewable evacuation, HVDC and green hydrogen-linked transmission projects. Management highlighted a long-term sector opportunity exceeding Rs15trn driven by renewable energy expansion, hydro projects and emerging data centre/green hydrogen demand. Capex momentum is accelerating, with FY26 capex at ~Rs400bn exceeding guidance. FY27/FY28 capex guidance also remains strong, supporting future earnings growth as projects get capitalized over the next 2-3 years. Focus areas remain HVDC corridors, inter-regional connectivity and renewable integration. Maintains BUY rating with target price to Rs346 (2.8x FY28E BVPS for 16% ROE and 6-8% EPS growth over FY26-28E), along with 3-4% dividend yield.
