Power Grid Corporation of India (PWGR IN) – Q1FY27 Result Update – Healthy capex and order win – BUY
Published on 07 Aug 2026
Q1FY27 consolidated Adj PAT (adjusted for prior-period income) stood at INR36bn, broadly flattish YoY and 6%/7% below our/Street estimates. In the post-result earnings call, PWGR highlighted that the lack of PAT growth was largely due to a one-off gain of INR2.3bn in Q1FY26. Adjusting for this, Q1FY27 PAT growth works out to ~6% YoY. Capitalization remained healthy at INR53bn, achieving 18% of its FY27 target of INR300bn, while capex stood at INR78bn, or 21% of the FY27 target of INR370bn. Management highlighted an upside risk to its FY27 capitalization guidance, although we expect greater clarity only post Q3FY27 results. Based on the order book including CWIP, new order inflows in Q1FY27 stood at INR105bn, compared with nil in FY26, as the Leh HVDC project was removed in Q4FY26. Post results, we have marginally cut our FY27E/28E EPS estimates by 1%, factoring in lower ROE from TBCB projects, and revised our TP to INR331 (2.7x FY28 BV). We retain our BUY rating. The stock offers an attractive dividend yield of ~4%.
