Power Grid Corporation of India Limited

Utilities — Utilities - Regulated Electric · NSE

₹250.45+₹0.60 (+0.24%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

The 60-second version of Power Grid Corporation of India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Power Grid Corporation of India Limited, an electric power transmission utility, engages in the power transmission business in India and internationally. It operates in three segments: Transmission Services, Telecom Services, and Consultancy Services.

IndustryUtilities - Regulated Electric

SectorUtilities

Employees9,745

Annual revenue₹44,765 Cr

How does it make money?

Turns over ₹44,765 Cr a year. Of every ₹100 of sales, about ₹36 reaches shareholders as profit, with ₹89 left at the operating level before interest, tax and depreciation. Each of its 9,745 employees supports ₹4.59 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.59 Cr

Who are its competitors?

The closest listed comparisons in its industry are NTPC LTD, TATA POWER CO LTD, ADANI POWER LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 11.2% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE13.7%

What is the outlook?

14 analysts covering the stock expect revenue to grow about 7.6% and earnings to grow about 7.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+7.6%

Est. earnings growth+7.8%

Analysts14

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +2% while net margin moved +2% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+2%

Margin effect+2%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 0.6% — barely ahead of inflation
✗ Profit CAGR of only 1.1%
✗ Profit fell 0.8% in the latest year

Quality vs. Valuation

Company Quality

59/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

65/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

14.6x

3Y Median

17.3x

40 monthly readings · mean 16.8x · range 11.1x–21.1x

Sector Median

26.5x

median of 3 sector peers

🟢Current valuation is approximately 15% below its 3y median of 17.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 45% below the peer median of 26.5x.

vs. its own history

Fair

17.3x median over 40 months · -15%

vs. sector peers

Cheap

26.5x median of 3 peers · -45%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.5x

PEG

13.48

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 1 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 1.51x — earnings must service borrowings before shareholders see anything.
🟡Inventory building faster than salesFinancial
Inventory up 59% against revenue up 2% — stock may not be moving.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.62 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 45% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.8x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Growth barely outpaces inflation
Revenue compounding at 0.6% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 87%✓ 89.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.8x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 2.8x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 0.6% CAGR
Latest reported year was 2.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹3,651 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

7 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹2.33 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

14.6x

Cheap

Cheap against the generic band

P/B Ratio

2.32x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹17.1

Profitable

Profitable on a per-share basis

ROE

15.8%

Strong

Strong capital efficiency

ROCE

11.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.51x

High

High leverage

Revenue Growth (YoY)

2.7%

Modest

Modest growth

Profit Growth (YoY)

-0.8%

Falling

Profits are shrinking

Dividend Yield

3.59%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹3,651 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

12.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

55.7%

Good

Healthy core-business profitability

Net Margin

33.8%

Good

Strong bottom-line conversion

Current Ratio

0.62

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.18

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

257.8 / 263.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

25.8

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹44,005 Cr	₹44,203 Cr	₹44,073 Cr	₹44,765 Cr	+0.6%
EBITDA	₹39,394 Cr	₹40,953 Cr	₹40,731 Cr	₹39,826 Cr	+0.4%
EBITDA Margin	89.5%	92.6%	92.4%	89.0%	—
PAT (Net Profit)	₹15,420 Cr	₹15,573 Cr	₹15,521 Cr	₹15,928 Cr	+1.1%
EPS	₹16.58	₹16.74	₹16.69	₹17.13	+1.1%
ROE	18.6%	17.9%	16.8%	15.8%	—
ROCE	11.7%	13.0%	12.5%	11.2%	—
Total Debt	₹1.29 L Cr	₹1.27 L Cr	₹1.35 L Cr	₹1.52 L Cr	+5.6%
Free Cash Flow	₹31,960 Cr	₹25,880 Cr	₹12,088 Cr	₹3,651 Cr	-51.5%

🟡 Revenue has been broadly flat over 3 years (0.6% a year).

🟡 EBITDA has been broadly flat over 3 years (0.4% a year).

🟡 EBITDA Margin has held roughly flat at 89.0% over 3 years.

🟡 PAT (Net Profit) has been broadly flat over 3 years (1.1% a year).

🟡 EPS has been broadly flat over 3 years (1.1% a year).

🔴 ROE has fallen from 18.6% to 15.8% over 3 years (-2.7 pts).

🟡 ROCE has held roughly flat at 11.2% over 3 years.

🔴 Total Debt has grown at 5.6% a year over 3 years.

🔴 Free Cash Flow has shrunk at 51.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2.95 L Cr

Total Liabilities

₹1.94 L Cr

Cash & Equivalents

₹4,230 Cr

Operating Cash Flow

₹40,931 Cr

Capex

-₹37,279 Cr

Shareholding (proxy)

Institutional Holding

36.1%

Insider Holding

52.9%

Corporate Actions

Next Earnings

10 Nov 2026

Dividend Rate

₹9

Ex-Dividend Date

13 Aug 2026

Analyst Consensus

Recommendations

15 Buy · 7 Hold · 3 Sell

Target Price (Mean)

₹318.76

+27.3% vs CMP

Target Range

₹264 – ₹400

Peer Comparison

Company	P/E	ROE
NTPC LTD	11.0x	13.7%
TATA POWER CO LTD	29.3x	9.8%
ADANI POWER LTD	26.5x	21.9%

Recent News

1 positive1 mixed4 general

Power Grid 52 Week Low Streak: Share Price and Valuation

Univest, 14 Oct

The Transmission Investment Story Nobody Notices: What the Capital Expenditure Test Really Reveals

Kalkine India, 16 Oct

Dividend Investors: Don't Be Too Quick To Buy Power Grid Corporation of India Limited (NSE:POWERGRID) For Its Upcoming Dividend

Simply Wall Street, 08 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Power Grid Corporation of India Ltd is Rated Sell

MarketsMojo, 14 Oct

Why Power Grid Corporation of India Share Price Is Falling

Equitymaster, 06 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Neutral Power Grid Corporation of India; target of Rs 302: Motilal Oswal

Moneycontrol.com, 10 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Profitability · Valuation · Risk

MiddlingFinancial Health

WeakGrowth

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x; Revenue growth stays above 4% a year · see Key things to watch ↑