Ladies and gentlemen, good day and welcome to the Power Grid Corporation of India Limited Q4 FY25 Earnings Call hosted by Antique Stock Broking. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this call is being recorded. I now hand the conference over to Mr. Vishal Periwal from Antique Stock Broking. Thank you, and over to you, sir.
Yeah, good morning, everyone, and welcome to the webinar with the management of Power Grid Corporation. In the webinar, management of Power Grid will be discussing their quarter four result. Detailed presentation will be provided, and post that, we'll have a Q&A from the participant. I would like to thank the management for giving us this opportunity for further proceeding. Now, I hand over the line to Shri Satyaprakash Dash, Company Secretary, Compliance Officer at Power Grid. Thank you, and over to you, sir.
Thank you, Vishal. Good morning, ladies and gentlemen. I extend a very warm welcome to all of you to this analyst and institutional investors conference of Power Grid Corporation of India Limited. Today, our senior management team will discuss the company's business and share our personal outlook based on the recently announced financial results. It's my pleasure to introduce my senior management. We have with us Naveen Srivastava , Director of Operations.
नमस्कार.
B. Vamsi Ramam ohan, Director of Projects.
नमस्कार.
Our Director of Personnel, Dr. Yetindra Dwivedi Sir, he has joined from Navi Mumbai Substation.
नमस्कार.
Now, I invite our CMD, Mr. R. K. Tyagi, to make the opening remark and presentation, please.
Good morning, everyone. I want to thank all the connected participants and investors for this investors meet today where we will discuss financial year 2025. I will give a small presentation about the performance. I request to put the presentation next. These are disclaimers. Next, presentation will have overview, major highlights, performance highlights, then growth outlook, sustainability, CSR, and awards. Next, as you know, Power Grid is India's flagship transmission utility, which was established in the Government of India shareholding. Where the price of Power Grid share was INR 366 per share with market cap of INR 3.4 trillion. We have been getting MOU rating as excellent since 1993-1994, and we operate about 84% of interregional transmission network. Our domestic and international credit has been excellent and at par with the sovereign rating. Next, today we have our board members, four functional directors, two government nominee directors, and three independent directors.
I am happy to announce that today we have been enriched by women independent directors, Srimati Sajal Jha, who has recently joined Power Grid board. So we will have experience of various independent directors and government nominee directors, and it will help us in taking better decisions for Power Grid growth and operations. Next, we operate in almost all the states and all the districts of the country, and we are playing a very important role in meeting the power demands of the country with transmission lines of 1,533 numbers with INR 180,239 lakh circuit kilometers and more than INR 3 lakh towers spread across width and breadth of the country. With 283 substations and INR 564,961 lakh MVA capacity, our interregional capacity is capacity to transfer power from one region to another region.
That means power generated in any part of the country can be transmitted to other parts of the country from the northeastern region to the southern region, or from the southern region to the western region, western region to the northern region, northern region to the eastern region, and vice versa. Our share is almost 84%. We have been maintaining our system availability at 99.82% in financial year 2025. We have HVDC stations and a very large fleet of 765 kV substations, 400 kV, and dynamic compensation 20 numbers, Static Var Compensator, and STATCOMS, which are helping in grid stability. Wherever we have the land constraints, we use Gas-insulated Substations. As of today, we have 66 numbers of Gas-insulated Substations. We have more than 3,800 transformers and reactors.
Next, in financial year 2024-2025, we have 24 numbers of TBCB projects where the cost of projects is about INR 92,000 crore and the market share is 57.34% in terms of NCT cost and about 54% in terms of project wins. The major projects which we have won are the transmission system for evacuation of power from Rajasthan, phase four, part four, part A. It is in the Bikaner area, power generated in the RE area in Bikaner to Shivani, then to Haryana, Punjab, and Delhi. It will evacuate power from Rajasthan to various parts of northern states. We have a very important and first TBCB HVDC project won by Power Grid from Khavda to Nagpur, which is about 6,000 MW capacity. It will transmit power from Khavda area to Nagpur, and then in Maharashtra and other parts of the country, power will be transmitted.
Similarly, we have one important project in Kurnool, where nearby Kurnool area, RE parks are there. The transmission system for Kurnool area, phase one, which is for about 4.5 GW. One more project which we have won in another in Khavda area, phase four, which is part B and 47 GW. Next, in asset management and operational management, we have been performing excellent always, and this is an indication that we are participating in international benchmarking being conducted by UMS U.S., where leading transmission companies of the world participate. In recently announced results in ITOMS 2025, Power Grid has been benchmarked as one of the best utilities in the world. We have been benchmarked in quadrant one, which means that our cost is low, our performance is high. Our operational efficiency and reliability is one of the best in the world.
We have been ranked best performers in transmission lines, transformers, circuit breakers, control, and protection. I just want to inform that the world leading utilities from the U.S., South America, South Africa, Europe, and other parts of the country, including Australia, China, and other countries, participate in this international benchmarking. Our performance is at par or better than other leading transmission companies of the world. Next, we have commissioned one of the largest digital substations at 765 kV. This is the first digital substation in the world at 765 kV level. It is a very big station as far as digital technology is concerned. We have commissioned recently at Navsari, which is for evacuation of power from Khavda area in Gujarat to Maharashtra and within Gujarat also, Navsari to Magarwada, Navsari to Kala, Navsari to Ahmedabad, Navsari to Phadke in Maharashtra.
It will be a very technologically excellent substation, which will have less or reduced CO2 carbon footprints. It can be commissioned. It can be tested from remote. Online testing can be done sitting from a remote area. Experts can sit in the U.S. or Europe or any part of the country, and the schemes can be tested from remote. Downtime is also reduced. More important is at 765 kV level, where EMI and EMC interferences are there. IDs tend to maloperate because of EMI, EMC interference. If we use fiber cables and digital technology, the challenge or risk of maloperation will become almost negligible. It will be very beneficial for EMI, EMC interference. Next, in performance highlights about project execution, then operational performance, financial performance, and other business and commercial performance. I will touch upon these areas.
In project excellence, we are considering a large number of projects being executed by Power Grid. We cannot go in a conventional way. We have introduced many excellences in project management. We are monitoring all the stations from the remote control center in Gurgaon in headquarters, which all stations are fitted with the cameras, and we are monitoring, including CMD Power Grid and Director Projects. We are monitoring each and every site sitting from our office, and we have a centralized control center at Gurgaon. Considering the shortage of skilled manpower, we have opened three skilled development centers: one at Malda, one at Banka in Bihar, and one at Basi in Rajasthan, which is close to Jaipur. Both in Malda and Banka, two batches have already passed their training, and they have been deployed or they have been employed in industry for working in transmission lines.
Basi Skill Development Center has been recently opened on 1 May 2025. Apart from these three, we are also working on two more skill development centers: one at Rajgad, one at Rourkela in Odisha. That way, the shortage of skilled manpower can be minimized because for tower erection for transmission lines, we require skilled manpower to work at height. The tower height for 765 kV lines can vary from 50 meters to maybe 100 meters. We require a very, very skilled manpower. For that, the skill development center will help in a big way. We have dedicated ROW and land acquisition cells at Gurgaon, where all the ROW issues being faced by the site are addressed from here.
We are sending our expert team from the corporate office to various sites to take care of ROW and land acquisition issues for strategic equipment like transformers, GIS, conductor, insulator, tower material, because there is a huge demand for these equipments. We have adopted a bulk procurement strategy to procure in advance so that we have these equipments well in advance to take care of any project for execution. Once we win the project, the timeline for which may be 18 months or 21 months or 24 months, the procurement of vital equipment like transformers in 18 months or 21 months will not be possible. We are procuring in advance these equipments. We have also introduced advanced tower erection techniques like we are using cranes for tower erection at 400 kV and 765 kV level.
For power line crossing and important crossing, we are using drone-based stringing. In the hilly area, also, drone-based stringing is being used. For expediting substation construction, we are using prefabricated firewalls for transformers and reactors, and also cable trenches are prefabricated so that execution time at site is minimized. I'm happy to announce that in financial year 2024-2025, we have commissioned sections of 765 kV substations in about 9-10 months from the date of acquisition of land, which is, I think, which may be a world record that in 9 months or 10 months, any 765 kV substation can be commissioned. Our project management has shown that it is possible that we can commission in 9-10 months.
One more substation which we are targeting to better our performance from a Sikar at DOSA, we are expecting, we are trying to commission even less than nine months. Which is expected to be commissioned maybe in one month or two months. We are excelling in project management. Similarly, we are using, like in rainy season or where the movement of this, like crane or porter deck, sorry, this forklift or other heavy equipment. We are using Porter Decks. These are these mats on which these heavy equipment can be moved from one place to another place so that the movement of these equipment is easy. Even we can work in rainy season for erection of towers, erection of equipment, and various execution works. These techniques we have introduced in our project management. Next, please.
With the result of these project management techniques, we have demonstrated that one 765 kV complete tower can be erected in one single day. A 765 kV DA type tower having a weight of about 37.4 metric tons was erected in a single day in Banas Kathar to Ahmedabad line. Normally, the output of the erection gang is about 8-10 metric tons in a day. Our project management has shown that we can even achieve 37.4 metric tons in a single day. This may be a world record that we could erect one 37.4 metric ton tower in a single day. Next. Last year, as committed, we have surpassed our target of about INR 20,000 crore. We achieved INR 26,255 crore CapEx in financial year 2024-2025. In capitalization, also, we have increased from INR 7,618 crore to INR 9,014 crore. Next.
The major elements which have been commissioned, as I already mentioned, that Sikar 765 kV by 400 kV Sikar 2 substation was commissioned in about 9 to 10 months from land acquisition. Then Kurnool 2 in Andhra Pradesh, 765 by 400 by 220 kV. Then 765 by 400 kV Navsari with digital technology. Then 400 by 220 at Navi Mumbai. Then Khavda pulling station KPS 2 in Gujarat. These five stations have been commissioned in financial year 2025. Important transmission lines, 765 kV from Phadke to Bhadla 2. Then Bhadla 2 to Sikar 2. Then 765 kV Sikar 2 to Aligarh. Then 765 kV Kurnool 3 to Kurnool New. In 400 kV from Navsari to Magarwada, Sikar to Neemrana, Jamnagar to Jam Khambhalia, Raipur to Dhamtari, Banas Kathar to Shankari. These are major elements which we have commissioned apart from many transformers and reactors commissioned at various stations.
I just want to inform that at Bikaner 2, in the last financial year, we have commissioned six 400 by 220 kV, 500 MVA transformers in a single financial year, which is also maybe a record that six transformers were commissioned. In the operational side, as I told, we achieved 99.82%, which is more than 99.75% at which we are normally getting incentive after, because after 99.75%, normally incentive is capped at that particular value. Our performance has been always good, and we are always achieving more than 99.75%. In terms of trippings per line per year, also continuously our performance is improving. Last year, also we have 0.27 trippings per line per year, which indicates that our one transmission line trips in almost four years. 0.27 per year means almost in four years, any single transmission line will trip.
In GRIDCON 2025 International Conference, an exhibition was arranged by Power Grid, which had witnessed about 10,000 participants with 3,000 delegates, representation from 32 countries. About 160 papers were presented. We had, in exhibition, 150 exhibitors, 9 startups, and 15 student pavilions were there. About 86 learning hours were there. This GRIDCON 2025 was a unique platform for key stakeholders to explore the future of India's power transmission sector, align with global energy transition trends, and discuss transformative technologies. It was attended by our Honorable Power Minister, Sri Manohar Lal, and Minister of State for Power, Sri Shripad Yesso Naik. Our Secretary Power, Chairman CA, apart from other dignitaries from India and various countries, also attended. In technology development, we have again received one patent on condition monitoring of transformers and reactors.
Our transformers and reactors are fitted with sensors, and this data is communicated to our software, where we can have online condition monitoring assessment of transformers and reactors. We got patented in this particular application. It is basically centralized monitoring and diagnostics of a large fleet of transformers and reactors. Next. In substation inspection, robots have been put into operation. One robot has been developed in association with IIT Kanpur, and which has been used at our 400 kV substations. Now we are deploying this robot at our 765 kV by 400 kV Jhatikara substation, which is close to Delhi. Next. Further, in technology development, we are working for SF6-free circuit breakers at 145 kV level. Already, the pilot project is already taken up. We are also considering 220 kV and 400 kV.
Super hydrophobic coating of insulators for enhancing the self-cleaning and anti-icing to reduce the maintenance of insulators. Non-destructive testing of transmission line tower members. The Mobile GIS for 400 kV, 132 kV, and 220 kV. This Nobile GIS will help in case of any natural calamity or any, suppose, earthquake or cyclone is there and a particular bay is damaged. Power supply can be restored very fast, that it can be maybe 6-8 hours, we can restore the power supply by using Mobile GIS bays. We are also working in wireless strain gauge technology for evaluation of strain in critical members of towers. Heavy lift programmable drones to support transmission infrastructure development in remote areas, especially in the hilly area, that cement bags or the tower members can be transported by these heavy lift drones. Next.
One more technology development, especially in the area of transmission line, to reduce ROW and to reduce cutting of trees. We are using insulated cross arm at 400 kV, and with two parties are already developed. This one is expected to supply in May and which will reduce the ROW from, say, 46 meters to about 36 meters. It will reduce the requirement of tree cutting, and it will save in environment-friendly technology. We will have compact design horizontal V-strings again for ROW requirements. These technologies we are expecting to deploy in financial year 2025-2026. Next. One more initiative we are taking, especially in J&K in Zojila Pass, where a 12-kilometer underground cable is being laid between Meena Marg and Zojila Top to bypass the overhead line. Because whenever any avalanche is there, that leads to damage of transmission line towers.
This particular line from Srinagar to Drass to Kargil, then Kalahasti and Leh, it is a single line. If it is damaged, then power supply to Leh is affected. We are laying this cable in that particular area so that power supply to Leh is maintained all the time. Next. In financial performance, standalone in Q4, we have revenue or income of INR 12,482 crore, PAT as INR 4,336 crore. In console basis, we have INR 12,591 crore and PAT as INR 4,143 crore. In case of financial year 2024-2025, our total income is INR 46,325 crore with a profit of INR 15,354 crore. On console basis, our income is INR 47,459 crore against INR 46,913 crore last year. PAT also INR 15,521 crore in financial year 2024-2025. Next. These are various details of our revenue on console basis, transmission charges, consultancy charges, telecom, and other heads, how we have performed in the last financial year.
Standalone, also these are the details which have been already published. These are the details in various heads. In financial performance, we have next, please. About INR 2 lakh 90,715 crore as gross fixed assets. Capital work in progress is about INR 36,341 crore. We have a debt of INR 130,965 lakh crore. Net worth has increased from INR 87,145 crore to INR 92,633 crore. Our earning per share is INR 16.69. Book value per share is INR 99.63. Debt equity ratio is 59-41. Return on net worth is 16.75%. These are the details of incomes and various heads, how we have performed in terms of income from operations, then differential tariff, and other heads. These are also mentioned in our details given already published. Next. In telecom segment, first time we have crossed INR 1,000 crore income. We have achieved INR 1,128 crore as against INR 910 crore in the last financial year. Total order received INR 412 crore.
New customers added 75 numbers. Our backbone availability is again 100%. Major projects under implementation are data center at Manesar, and then zone two data center at Chennai. Government projects, ERNET and NKN, National Knowledge Network. Next, please. In consultancy assignment, we have revenue from operations INR 799 crore against INR 553 crore. In international, we have 16 ongoing assignments and 8 orders during financial year 2025. In domestic, we have 80 ongoing assignments and 55 new orders during financial year 2025. Next, please. In commercial, we have a billing of INR 36,877 crore with realization of INR 38,284 crore, realization at 103.8%. Our outstanding at the end of quarter is about INR 3,388 crore. Next, please. In terms of investor-centric growth, we have this increase of market cap about 2.4 times what we had in financial year 2021. In price, CAGR from FY 2021 to 2025 is 24.4%.
Dividend paid during financial year on cash basis, it is INR 10.5 per share. Our market capitalization is also increasing. In at the end of financial year 2025, it was our this was INR 2 lakh 70,136 million with the share price of INR 290.35 per share. Next, please. In investment or CapEx, we have this five-year CAGR about 23.5%. Last year, we have achieved CapEx of INR 26,255 crore. From financial year 2021 to 2025, about INR 68,000 crore projects we have had CapEx in various areas. Next. If we see growth outlook, sectoral outlook, then business outlook and works in hand and CapEx outlook. As you know, India is targeting about $10 trillion economy by 2032 with rapid industrialization, urbanization, and e-mobility adoption. Energy storage expansion will be about 47 GW by 2032. Pump hydro storage about 36 GW. Clean energy commitments more than 600 GW by 2032.
With present capacity of 71 GW, additional electricity demand on account of green hydrogen production by 2032. Global energy integration with the vision of our honorable Prime Minister, One Sun One World One Grid for international power connectivity. These are sectoral outlooks which will help us Power Grid growth also. As of now, we have a business outlook 2032 about INR 3 lakh 6,600 crore, out of which about INR 2 lakh 70,000 crore will be in interstate transmission and balance will be in other areas, including interstate transmission system. Other business we have about INR 7,500 crore, including solar generation, smart metering, data center. Put together, we have about INR 3,600 lakh crore as of now, which is likely to increase, but as of now, it is INR 3 lakh 6,000 crore. Today, we have about INR 1 lakh 54,680 crore works in hand in TBCB, INR 1 lakh 5,000 crore, new RTM about INR 37,000 crore, ongoing RTM INR 9,580, and others INR 2,785 crore.
So put together, we have works in hand about INR 1 lakh 54,680 crore. Next, please. CapEx outlook, we are targeting INR 28,000 crore in financial year 2025-2026. In financial year 2026-2027, INR 35,000 crore. Financial year 2027-2028, INR 45,000 crore. As far as INR 25,000-26,000 crore, it is as of now, whatever visibility we are seeing as of now, but it is likely to increase to more than INR 30,000 crore. That exact figure we can tell after three months once we see the progress and other projects which we are likely to win. Today, we are committing about INR 28,000 crore, but it is likely to increase. Next. In sustainability and CSR, we have a target of next 50% of electricity consumption from RE. We have already achieved 36% electricity consumption from RE. We have target to achieve 50% before December 2025.
Net water positive by 2030 and zero waste to landfill status by 2030, net zero emission by 2047. I just want to announce that we have now a dedicated department and dedicated group which is working mainly for ESG and net zero. We are targeting 2047 at net zero Power Grid. In achievements, in scope 1 emissions, we have achieved 40.61% reduction and in scope 2, 5.23% reduction and 21% increase in emission offset compared to FY 2024. Next, please. In sustainability, we have now first ICT with ester oil in Power Grid, 132 by 33 kV, 10 MV ICT at HBDC Pusoli has been successfully charged after retrofilling with natural ester oil.
Earlier, we had two reactors, one 400 kV shunt reactor with the natural ester oil at Methone substation and one 132 kV shunt reactor at Aswal in Mizoram, which were earlier fitted with the natural ester or vegetable oil. We are always working for sustainability areas. One more transformer which is likely to be commissioned in financial year 2025-2026 is 400 kV by 220 kV, 500, 315 MV ICT, which is likely to be commissioned in financial year 2025-2026. We have commissioned 85 MW solar PV power project at Nagda, which was commissioned in April 2025, which has already started generating power. We are selling electricity about 70%-80% in G DAM, green day head market, and real-time markets in power exchange. We also have pilot project of green hydrogen at our Nimrana substation, which will meet the captive load using solar-powered green hydrogen.
We will generate RE power from solar. Then this RE power will generate green hydrogen. In nighttime, this green hydrogen will again convert to electricity, which we will use for our captive use at Nimrana. The project cost is about INR 32 crore. This is likely to be awarded in June 2025 with the implementation schedule of about 12 months. In CSR activities, considering this CSR, we have Vishram Sadan at AIIMS Bilaspur, 250-bedded, which was inaugurated and foundation stone was laid by our honorable minister Sri JP Nadda, BJP president. Vishram Sadan at Gorakhpur, AIIMS Gorakhpur, which was also foundation stone was laid by honorable CM of UP. We have this skill development center at Basi, Banka, Malda; these are also under CSR.
We have this Hira Mining Waves, a skill development program for unemployed youth from Thiruvananthapuram, Fisher Folk communities, offering dive master and rescue diver training to boost marine employment. This also we have taken up. We have won some awards and recognition. The CMD Power Grid has been conferred with the prestigious CBIP Individual Award for outstanding contribution in the power sector. Our Director of Finance has also been recognized as Best CFO in Energy and EPC at the ASSOCHAM Third Vibrant Bharat CFO Summit and Awards. Director of Operations Power Grid has been conferred with Chief Global HSC Leader of the Year 2025. Power Grid has also been conferred with the World Congress on Disaster Management, Disaster Risk Reduction 2024 Award in the category Response During Disaster and Emergencies. Our women leaders also have been recognized.
We have been recognized as Best Enterprise Maharatna Company, second runner-up at 35th National Meet of Women in Public Sector. Our Executive Director, Manju Gupta, has been honored with Corporate Visionary Nari Award at the Ujjivala Summit 2025. Power Grid has also been conferred with Economic Times Human Capital Awards 2025 for Excellence in HR Digital Transformation and Excellence in Creating Culture and Continuous Learning and Upskilling. Thank you very much. Thank you.
Should we begin the question and answer session?
Yes, please.
Yes, please.
Thank you. Ladies and gentlemen, we will now begin the question and answer session. If you would like to ask a question, please click on the blue video question tab and follow the instructions to join the queue. We would request you to click on the raise hand option once connected on Zoom.
Before asking the question to the management, please introduce yourself, providing your name and your organization name. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, please take note that once you join the Zoom call, I would request you to raise a hand in order to ask a question. Our first question comes from the line of Sumit Kishore. May I request you to unmute your line and go ahead with your question, please?
Good morning. Am I audible?
Yes, sir.
Yeah. I'm Sumit Kishore from Axis Capital. My first question is, you know, you have had a terrific year in terms of TBCB project wins of almost INR 92,000 crore. What is the transmission bid pipeline for this current financial year? Secondly, you had a capitalization miss versus what was guided earlier.
If you could state what is the picture today in terms of the spillovers of commissioning which have happened maybe early this fiscal? What is your guidance for FY 2026-2027 in terms of capitalization, given that you have provided CapEx numbers for FY 2026-2027-2028? That is the first part of the yeah. Thanks.
Should we respond? Yeah.
Yeah. Thank you, Kishor. Like as we mentioned that in financial year 2024-2025, we had a CapEx of about INR 26,000 crore plus and INR 9,000 crore plus capitalization. We had a plan for about INR 16,000-17,000 crore capitalization. Because of this, there are challenges of ROW and supply issues and skilled manpower. We are facing problems of skilled manpower. There was election also in central government. Because of that, there have been some delays, especially ROW issues in Rajasthan, Haryana, Delhi, and Gujarat.
That led to some delays in this capitalization or commissioning of some projects, which are now planned to be commissioned in quarter one of FY 2025-2026, and some may go in quarter two also. In financial year 2025-2026, we are expecting about INR 23,000-25,000 crore capitalization.
Sir, also on the bid prospect pipeline for FY 2026? TBCB pipeline. How many crores? TBCB pipeline available?
Yeah, it is a pipeline. The projects which are already in pipeline, this is about INR 45,000-46,000, out of which about INR 34,000 crore projects are already under bidding, and INR 10,000 or 11,000 crore projects are yet to be bid. So INR 46,000, you can say. As of now.
This is significantly lower after you won almost INR 92,000 crore of contracts last year. Maybe this would be a slower year in terms of building new jobs into your works in head.
This is as of now, but more projects are in pipeline. Visibility of those projects will be seen after maybe two, three months.
One question at the sector level is that we have seen that there was a bunching up of a lot of RE projects where LOAs were awarded, but PPAs were not signed. Power demand so far this financial year has also started on a weak note. In the event, what is the impact on Power Grid's capitalization in case there is a large pipeline of projects in RE which were planned to be added, but those are obviously getting delayed? How does that impact works in hand for Power Grid? That's the question.
Our transmission line is not dependent on whether PPA is signed or not. Normally, we are given any project for which a separate timeline is given.
Once we commission any RE project or any project for that matter, we start getting our tariffs. We are not having any risk of whether RE is delayed or PPA is signed or not. Power Grid as such will not be affected by any of these issues.
Fair enough. Just if I may ask one last question. Your ROE has dipped by about 100 basis points at the consolidated level this year with the various issues that we have been discussing so far. Has the ROE stabilized here now with all the issues baked in? What is the outlook? The capital structure, which is at INR 5,941. How do you see this evolving? Given your dividend per share has also come off at INR 9 on a year-on-year basis. Thank you.
As far as dividend is concerned, like we have, as you know, that we have more projects now. We require equity for our project execution. That is why our dividend payout is reduced by about INR 2-INR 2.25. This will require more money in the future. Maybe next year also, there may be some change from INR 9. It can further reduce depending on the CapEx, which we are expecting, say, about INR 28,000-INR 30,000 crore. That was the reason why we have reduced our dividend payout. As far as our ROE impact, last year we had INR 15,500 crore. This year also, our profit is again in the same range. Our net worth has increased from INR 87,000 to about more than INR 90,000 crore. That is the reason why you can see that impact.
Thank you. Mr. Sumit, may we request that you return to the question queue for follow-up questions? Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to one or two per participant. Should you have a follow-up question, we would request you to rejoin the queue. Our next question comes from the line of Apoorva Bahadur. May I request you to unmute your line, introduce yourself, and go ahead with your question?
Hi, sir. Thank you for the opportunity. Quickly, sir, I wanted to understand and know your view over here. You highlighted that the company has won INR 92,000 crore worth of projects in FY 2025. I assume this is the NCT cost. And how much higher do you expect the actual cost to be over here?
Yeah, it is not NCT cost.
It is the cost which we are having, our internal, it is our internal cost at which we have awarded the projects.
Okay. Okay. Secondly, has there been any change in the competitive intensity for TBCB projects for the bids now, given that the overall pie had increased significantly last year?
Can you repeat, please?
Sir, are you seeing any material change in the competitive intensity in bids this year?
No, intensity in the sense that we are not going below a certain level, that we have fixed a particular level that may be more than 12% or 13% ROE. We are maintaining that. Maintaining that, whatever projects we are able to win, we are winning. Our percentage is very good. As you can also appreciate, INR 92,000 crore projects in a single year is not a small thing.
Still, we are maintaining our ROE above the particular level.
Thank you, sir. Sir, last question from my side. On the HVDC projects, can you give us some visibility beyond the three or four projects that are known as of now? How many more are under planning?
As far as this HVDC project, we have this Khavda to Nagpur. Then we have Fatehpur to Badla. We have this Leh to Pang. Then we have one more already under bidding from Khavda to South Olpad. Then one more project from Rajasthan to Maharashtra. Then one more project in Andhra from Kurnool area to Visakhapatnam. These are, as of now, within India. Maybe outside India, maybe between India to Singapore via Andaman. Then maybe from India to Sri Lanka and India to Myanmar.
Apart from this side, one sun, one world, one grid, maybe from India to Oman, UAE, and other countries.
Thank you. May we request you to rejoin the queue? Several participants are waiting for their turn. Thank you. Our next question comes from the line of Satyadeep. Please go ahead.
Hi, am I audible?
Yes, sir. Please go ahead.
Just first question on the delays that were seen in fourth quarter. I think elections and all I know happened towards the earlier part of the year. But in Q3, management was guiding to INR 11,000 crore of capitalization in Q4. Just wanted to understand what is leading to some of these delays.
Given the last difference between CapEx and capitalization, obviously, you're incurring the CapEx, but there is some delay in commissioning of the project, which means you've already acquired land, maybe already paid suppliers, but maybe there is some delay in actual commissioning. How does it impact your actual commissioning cost and timeline versus what you were expecting? Maybe when you bid the project, you had a certain CapEx estimate and certain timeline. How much time are you seeing for commissioning of these AC lines, TBCB projects now, and how much cost inflation are you seeing versus the initial expectations you had for some of these? That's the first question.
Let us accept that there are challenges of ROW because everyone, including landowners and farmers, they are demanding more and more money. Our Government of India is also considerate to their demands.
You may be knowing that in June 2024, there was an ROW guideline issued by the Government of India, considering requests or demands or resentment of farmers. From 15% ROW land compensation, it was increased to 30%. On tower base, it was increased from 85% to 200%. These schemes were like these policies, ROW compensation policies are to be adopted by various states. There is some delay between adoption of these guidelines from issuance by the Government of India to adoption by the state government. That leads to a delay in execution or completion of transmission projects. Again, there was unrest in Haryana and Delhi. Again, in March 2025, the Government of India has again increased compensation. From 200%, this ROW is increased to 60% from 30% in urban areas. In severe urban areas, it has increased to 45%.
Now they have clearly indicated how to give the price to the farmers or cost to the farmers for land compensation. That methodology also shared by the Government of India guideline has been issued. As per that, two valuers will be there, one by the transmission developer, one by the farmers. They will decide the market rate. We will have to pay land compensation as per the market rate. There has been some delays because of these ROW compensation policies issued by the Government of India and adoption by the state government. In 2024-2025, there has been delays in some projects. We are expecting that in 2025-2026, since already guidelines are in place, the execution will be much faster as compared to FY 2024-2025.
As far as you are saying impact on the return on equity or our return, what will happen to time over and post over. We are likely to get these claims under change of law because as on date when we got these projects, the compensation policies were issued. We are putting this compensation policy issued in 2015, October 2015, sorry, October 2015. We have considered that compensation policy. But now compensation policies have been changed. Whatever differential amount will be there will be claiming under change of law. We are not expecting impact of any delay or our expenditure incurred on these schemes. We are not expecting much impact. There may be some impact, but not much impact.
Okay. Thank you for clarifying that. Second question on the pipeline.
In the INR 3 lakh crore pipeline that you have, you obviously have INR 2 lakh 70,000 crore of ISGS. I'm sure there's some maths involved in that based on NEP estimates and some market share. Just on that, given the previous speaker also asked a question on that, if ultimately the DISCOM has to bear that cost, if you commission the project but there is no RE, would you sense some pressure from DISCOMs to delay some of these projects if the RE player has requested connectivity under GNA but there are some delays? Would you not expect some requests from DISCOMs to delay these projects? Given there is change in GNA regulations on battery, solar RE, non-solar RE, do you see some risk to these estimates you have? Just wanted to see sensitivity and maybe is there any risk to these CapEx expectations that you have there.
Thank you so much.
As we have indicated that $10 trillion economy by 2032. And in transmission itself, as per NEP issued by the Government of India, National Electricity Plan for transmission, about INR 10 lakh crore are to be spent in transmission system development. So out of which INR 3 lakh crore is, I think it is very, very optimistic figure. So it may be more. We are not seeing any challenge or any issue in achieving this target.
Thank you. Our next question comes from the line of Mohit. May I request you to unmute your line and go ahead with your question, please?
Yeah. Good morning, sir. Am I audible?
Yes, sir.
Yes, sir, please go ahead.
Yeah. My question is, what is the status of the HVDC Leh Ladakh and why there is a delay in awarding of the equipment? That's the first question.
Yeah, please carry on.
My second question is on the, what is the status of Paradeep- Andaman Link? I think it was supposed to be audited to us on a cost-plus basis. Are we expecting this project to get added to the pipeline in FY 2026?
Okay. As far as the Leh Ladakh project is there, it is already being executed by Power Grid. We have already acquired land at Leh. And the infrastructure development work is already going on there. We are also working for a line between Pang to Leh. That also is there. As far as award of HVDC is concerned, because you will appreciate that this is at very high height, it is about 4,500 meters to 5,000 meters. There are technological challenges. Worldwide, there is no experience at this height. There have been concerns raised by various bidders.
There have been some discussions with our experts. We have technical experts and an advisory team. We are addressing those issues with our prospective bidders. We are now expecting that it will be awarded somewhere in, we have already got the bid, which is under evaluation. In quarter two, it is likely to be awarded. I think it will not be further delayed after quarter two. For Paradeep- Andaman and Singapore, preliminary studies have been already done. The Government of India is working out the capacity between this Paradeep to Andaman. The same line, HVDC line, is likely to be maybe between Singapore to India. The same line will continue to Singapore also. Those modalities are being worked out by the Government of India.
Then once the Government of India comes out with a clear methodology, we will consider this project also. As of now, there is no clear visibility. Maybe in quarter two, there will be some clear visibility by the Government of India. Thank you. Due to time constraints, we will move to the next question. Our next question comes from the line of Puneet. I have requested you to unmute your line and go ahead with your question, please. Yeah, thank you so much. My first question is, if you can talk, what is the gap between the NCT value and your own estimates for the projects that you have won? Gap between the NCT value and your own internal estimates of INR 92,000 crore that you have talked about in the projects that you have won? Yes, except for the HVDC project, which we have between Khavda to Nagpur.
Maybe others are almost matching, maybe within 5% variation may be there. In this particular case, NCT cost is about INR 24,000 crore, but the actual cost may be INR 33,000-34,000 crore. Otherwise, other projects are within 5%. Understood. That's very helpful. Secondly, you talked about the pass-through of compensation under change in law. Would you also get the benefit of or the additional cost overruns that happen in terms of delayed execution because of ROW issues? Is the compensation limited to only the value of the land? Normally, this also IDC, because it will impact IDC. We are likely to get this also, and we will claim also that whatever because of delay, there have been project overruns and IDC has increased. We will claim that amount also.
Thank you. Our next question comes from the line of Subdeep Mitra.
May I request you to unmute your line and go ahead with your question, please?
Good afternoon. Am I audible?
Yeah. Yes, sir. Please go ahead.
Thank you for the opportunity. Sir, my first question is with regard to the HVDC TBCB pipeline. The South Toll Park project is expected to come into the tendering phase by when?
Yeah, it is already under RFP has already been issued, and bids are likely to be submitted very soon. There was a date of 16th May, which has been increased now because they got some queries from the prospective transmission system developers. It will be like tender is already out and RFP is already out, and it will be very soon it will be finalized.
Understood. Secondly, are we seeing more HVDC projects, maybe the Barmer project or any other LCC-based projects coming up after South Toll Park?
South Toll Park is VSC. Barmer to Maharashtra, it is likely to be LCC as of now. Andhra Pradesh also, Kurnool to YZEC is also LCC. VSC as of now, only between two countries, like if it is India to Oman or UAE or maybe between Singapore to India, that will be VSC.
Thank you. Our next question comes from Atul Tiwari. May I request you to unmute your line and go ahead with your question?
Yeah, sir, any idea about likely CapEx on Paradeep- Andaman-Singapore link? What will be the rough size of the project?
Yeah, as per initial estimates, it is INR 30,000 crore. Yeah, so it will be, I cannot say exactly, but it will be INR 30,000 crore plus.
What will be the capacity roughly for that CapEx?
Capacity, if it is, say, between Singapore to India, it may be about 2,000 MW. If it is between Andaman to Paradeep, it will be about, say, 250 MW.
Okay. Sir, in terms of the TBCB pipeline, you did mention about INR 45,000 crore, as you can see right now. If we take a slightly longer-term view, financial year 2027 and 2028, over the next three years, what is the likely pipeline for TBCB that will be bid for?
As far as this NEP, as per NEP pipeline, more than INR 9 lakh crore projects are to be completed by 2032. Out of which already INR 3 lakh crore projects are already, they have been already allocated. About INR 6 lakh crore projects are still to be allocated, which are to be completed by 2032.
Considering execution time of about two to three years, by 2029, all balanced projects are to be allocated. You can consider that in the next four years. All these balanced transmission projects are to be allocated. You can calculate yourself.
Thank you. Our next question comes from the line of Sumit Kishor. May I request you to unmute your line and go ahead with your question?
Thank you so much for the opportunity once again. My question is that in terms of your CapEx over FY 2026 to 2028, it adds up in terms of guidance to about INR 1,080 billion as compared to your works in hand of roughly about INR 1,546 billion. In this INR 1,080 billion, how much is the CapEx that you are planning to incur for the HVDC projects, which have typically longer gestation period? I'm referring to the larger ones, including the Leh project.
Yeah, we have mentioned that we have about INR 1 lack 54,000 crore projects in hand. In, say, about INR 28,000 crore in FY 2025-2026, and INR 35,000 crore in 2026-2027, and 2027-2028 INR 45,000 crore, which adds up to, say, about INR 108,000 crore or INR 110,000 crore. Balance will be for HVDC, which will be this Kaithal to Pang and HVDC Khavda to Nagpur. Majority of this CapEx for HVDC will be after two years only. We will have some maybe 20% or 30% up to 2027-2028, but balance will be after two years only.
Sir, what will be the total value of the HVDC contracts under VSC or LCC route that you are looking to award to contractors in the next one year or next two years?
Separately VSC and LCC, if you can give separately, that will be very useful for FY 2026 and FY 2027.
We can tell only like we have only one project in hand, which is Leh and Kaithal. And balance this Khavda to South Toll Park, it is not in hand. We cannot talk anything about that unless until we win that. You know that this Leh and Kaithal is INR 20,000 crore plus. Out of which maybe INR 12,000-13,000 crore will be for HVDC portion, balance will be for transmission line. That only I can confirm as of now. Balance, once we win these projects, then only we can say LCC or VSC or other.
Thank you. Our last question for today comes from the line of Puneet. May I request you to unmute your line and go ahead with your question, please?
Yeah, thank you so much for the opportunity. If you can also talk about the potential opportunity on the intra-state transmission side, is that opening up or is it still largely done by state transcos?
No, intra-state, as per the NEP, they have shown that they have indicated that there will be an expenditure or CapEx of about INR 3 lakh crore plus in intra-state.
Yeah.
Now, unless until they go under TBCB execution, then only it can be achieved. Otherwise, INR 3 lakh crore will be very difficult to be achieved by various states. UP, MP, then Rajasthan, then Odisha, Maharashtra, these states have already come out with the intra-state TBCB projects. We are also participating with the same interest as compared to inter-state TBCB projects. We are also expecting that we will also win some projects in intra-state transmission system also.
There is no difference between intra-state transmission TBCB project and intra-state TBCB project. More and more states are talking these days for TBCB projects. They will come in many numbers. All the states should follow this intra-state TBCB.
Any size you can give for this current tenders?
As of now, no. I may not be in position to share any figure.
Understood. That is very helpful. Thank you so much.
Thank you. Ladies and gentlemen, that was the last question for the day. I now hand the conference over to the management for closing comments. Over to you, sir.
Yeah, I once again thank each and every one of you for joining and taking interest in Power Grid. Power Grid management is committed to achieve all the targets, all the targets which we have mentioned today.
Regarding project efficiency, operation efficiency, we will be working very hard to achieve all the targets given by Government of India. Thank you once again for showing your interest. Thank you.
Thank you. Ladies and gentlemen, on behalf of Antique Stock Broking, that concludes this conference. Thank you for joining us, and you may now exit the meeting.