Power Grid posts stronger profit as capex outlook rises
Power Grid reported Q2FY27 adjusted PAT of ₹3,860 cr, up 11% year on year and above estimates. Prabhudas Lilladher highlighted higher FY27 capex guidance of ₹3,700–4,000 cr and works in hand of ₹2.2 lakh cr.
after close1 source ↓machine-written, see hownot a recommendation
Power Grid Corporation of India reported consolidated adjusted PAT of ₹3,860 cr in Q2FY27, excluding prior-period income, according to Prabhudas Lilladher. Profit rose 11% year on year and came 9% above the brokerage’s estimate and 8% above the Street estimate. The report retained a buy view with a target price of ₹321, while the earnings outcome highlighted improving profitability in the power-transmission business ⚡
Underlying PAT growth was approximately 9% year on year before regulatory and one-off items, based on management’s earnings bridge. The company capitalised ₹400 cr during the quarter and ₹930 cr in the first half of FY27, against revised full-year guidance of ₹2,500–3,000 cr. Although first-half capitalisation was below the pace implied by earlier estimates, management raised its FY27 capex guidance to ₹3,700–4,000 cr, with ₹1,690 cr executed in the first half.
The higher capex outlook matters because transmission investment supports the company’s regulated asset base and future earnings visibility. Management also indicated potential annual capex of around ₹4,000 cr in FY28 and FY29, with scope for upside. For the broader infrastructure and power ecosystem 🏗️, the update points to a sizeable project pipeline and sustained spending on grid capacity.
Key Points:
• Order inflows, including construction work in progress, stood at approximately ₹52,500 cr in Q2FY27, led by the Barmer high-voltage direct-current project win.
• Works in hand increased to ₹2.2 lakh cr from ₹1.8 lakh cr quarter on quarter, providing a larger execution backlog.
• The bidding pipeline stood at ₹67,200 cr, adding visibility to future order opportunities.
The key monitorables are the pace of capitalisation in the second half of FY27, execution of the ₹3,700–4,000 cr annual capex plan, and conversion of the bidding pipeline into awarded projects. Investors will also track whether quarterly profit growth remains positive as regulatory and one-off effects normalise. The combination of stronger-than-expected adjusted PAT, higher capex guidance and rising works in hand forms the central basis of the brokerage’s constructive assessment.
Source: TradingView, 04 Nov 2026
Not investment advice. For informational purposes only.