Power Grid Corporation of India (PWGR IN) – Analyst Meet Update – Guidance upgraded – BUY
Published on 24 Mar 2026
We hosted Power Grid Corporation (PWGR) management for a business update. PWGR has revised FY26 guidance for capex upward to INR350bn+ (vs. INR320bn earlier) and capitalization to INR250bn+ (vs. ~INR220bn earlier).
Forward guidance of INR370bn capex in FY27 and INR450bn+ in FY28, with INR300–350bn capitalization, has been kept intact. The management sees upside potential with incremental new project wins, implying ~INR650bn capitalization over the next 2 years. We have factored in revised capitalization and capex guidance and increased EPS marginally by ~1% over FY27E/FY28E. We retain ‘BUY’ with TP of INR348 (valued at 2.8x FY28E BV) vs. earlier TP of INR324 (valued at 2.6x FY28E BV). Stock offers dividend yield of 3-4% over FY27E-28E.
