Power Grid Ltd Soft P&L But FY26 Capex/Capitalization Guidance Exceeded

Research evidence excerpt

Power Grid Ltd Soft P&L But FY26 Capex/Capitalization Guidance Exceeded

J P M O R G A N Asia Pacific Equity Research

18 May 2026

Power Grid Ltd Overweight

PGRD.NS, PWGR IN

Soft P&L But FY26 Capex/Capitalization Guidance Price (18 May 26):Rs296.55

Exceeded ▲Price Target (Mar-28):Rs345.00 Prior (Mar-27):Rs319.00

PGCIL exceeded its FY26 capex and capitalization guidance and maintained its

FY27 capex and capitalization guidance. Further work-in-hand remains healthy at India Industrials, Electric Utilities,

and Infrastructure SectorsRs1.7 trillion with another ~Rs 1 trillion+ of projects under bidding. PGCIL’s

cumulative market share in TBCB at FY26 end stood at 44% (tariff basis). The Atul Tiwari AC

Right of Way (ROW) issues, which had delayed execution and capitalization till (91-22) 6157-3582

atul.tiwari@jpmorgan.com

3QFY26, have now been completely resolved as new land compensation

guidelines for farmers have been implemented on the ground. As a result, FY26 Rishabh Gupta

(91-22) 6157-3429

capex/capitalization at Rs399bn/Rs282bn came in well ahead of the revised rishabh.x.gupta@jpmorgan.com

guidance of Rs350bn/Rs250bn, respectively. 4QFY26 P&L was soft, though PAT

Muskan Agarwal

at Rs45.5bn grew +5% y/y and was inline with JPMe. 4QFY26 saw large (91-22) 6157-3226

movements in deferred tax and regulatory deferral account balances due to forex muskan.x3.agarwal@jpmchase.com

translation impact and move to switch to new tax regime. Due to many RTM J.P. Morgan India Private Limited, J.P. Morgan

projects completing 12 years, revenue / EBITDA growth was negatively impacted Tower,Registration:Santacruz(E),INH000001873,Mumbai (91-22)- 400098,6157-3000.SEBI

with revenue /EBITDA falling 9%/19% y/y in 4Q. PGCIL has work in hand of