Power Grid Corporation of India (PWGR IN) – Q2FY27 Result Update – Capex guidance raised, capitalisation trimmed – BUY
Published on 03 Nov 2026
PGCIL reported Q2FY27 consolidated adjusted PAT (excluding prior-period income) of INR 38.6bn, up 11% YoY and 9%/8% above our/Street estimates. Underlying PAT growth was ~9% YoY before regulatory and one-off items, as per management’s earnings bridge. Capitalisation stood at INR 40bn in Q2FY27 and INR 93bn in H1FY27, against the revised FY27 guidance of INR 250–300bn (earlier INR 300bn). While this is below our/Street estimates, capex guidance was raised to INR 370–400bn, with H1 execution at INR 169bn. Management expects annual capex of ~INR 400bn in FY28/29, with potential upside. Order inflows (including CWIP) stood at ~INR 525bn in Q2FY27, led by the Barmer HVDC win, taking works in hand to INR 2.2trn from INR 1.8trn QoQ, alongside a bidding pipeline of INR 672bn. The resumption of quarterly YoY PAT growth, strong capex visibility and sustained T&D bidding opportunities remain key positives. We retain BUY with an unchanged TP of INR 321, valuing the stock at 2.5x 1HFY29 BV, stock offers a dividend yield of ~4%
