Power Grid Corporation of India Ltd.
NSE: POWERGRIDPower Grid Corporation of India Ltd.: A 30-second snapshot
Power Grid Corporation of India (POWERGRID) is the national electricity transmission monopoly, trading at ₹292.25 with a trailing PE of 14.55 and a dividend yield of 4.19%. The company posted 5-year earnings growth of +9.6% and has maintained positive free cash flow in 4 of the tracked years, though 5-year revenue growth is negative at −5% and debt-to-equity stands at 150.99 with a rising trend. The stock is 3.3% below its 50-day moving average but remains above its 200-day moving average of ₹283.52.
P/E
14.5
Forward P/E
14.6
ROE
+16.5%
Debt / Equity
150.99
Profit Margin
+34.1%
Div. Yield
+4.2%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
55/100
News
8 headlines · 3 positive · 0 negative
Power Grid Corporation of India Q3 Results - Mint
Mint
Power Grid Corporation of India Limited Promotes Sunil Kumar as Executive Director, Effective June 1, 2026 - marketscreener.com
marketscreener.com
POWERGRID board to meet on June 10 to consider fund raising - scanx.trade
scanx.trade
POWERGRID Floats 100 MW/400 MWh BESS Tender At Kharagpur, West Bengal - Saur Energy
Saur Energy
POWERGRID seeks EPC partners for 400 MW/1.6 GWh battery storage projects in West Bengal - pv magazine India
pv magazine India
Recent context
- ·POWERGRID floated two large-scale battery energy storage tenders in West Bengal in early June 2026 (100 MW/400 MWh at Kharagpur and 400 MW/1.6 GWh), signalling a strategic push into grid-scale storage alongside its core transmission mandate.
- ·The board met on June 10 to consider fundraising, consistent with the rising debt trend and ongoing capital expenditure cycle; news of the ₹5,000 crore raise follows earlier disclosures of elevated leverage.
- ·Q3 results were covered by Mint (June 19) and received a neutral sentiment tag; 8 recent news articles carried 3 positive and 5 neutral, with zero negative — the news flow is absence-of-bad-news rather than actively constructive.
Strengths
- +ROE of 16.49% over a regulated-utility peer group where NTPC sits at 13.69%, ADANIGREEN at 7.58%, and ADANIENSOL at 9.66% — POWERGRID ranks 2nd of 6 peers on return on equity.
- +5-year earnings growth of +9.6% alongside positive FCF in 4 of tracked years suggests the regulated tariff model is converting asset additions to earnings without sustained cash burn.
- +Dividend yield of 4.19% backed by the board approving a ₹5,000 crore fundraise, indicating capital access; recent BESS (battery energy storage) tenders of 100 MW/400 MWh and 400 MW/1.6 GWh signal active capital deployment in grid modernisation.
- +PE of 14.55 ranks 2nd lowest in the 6-peer power sector cohort versus ADANIGREEN at 156.55, ADANIENSOL at 81.48, ADANIPOWER at 34.95, and TATAPOWER at 34.42 — POWERGRID trades at a meaningful PE discount to most sector peers.
Weaknesses
- −Debt-to-equity of 150.99 with a rising trend is the defining balance-sheet characteristic; while regulated utilities structurally carry higher leverage, ongoing borrowing for capital expenditure compounds refinancing exposure should interest rates shift.
- −5-year revenue growth of −5% alongside positive earnings growth indicates top-line contraction — cost efficiencies have sustained profits, but there is no organic revenue expansion visible in the 5-year window.
- −Quality score of 37 out of 100 and fundamental consistency score of 43 place POWERGRID below the mid-point of its sector on composite capital-efficiency measures; ROE exceeded 15% in only 4 of the tracked years.
- −1-year price appreciation of +4.59% alongside a 10.1% drawdown from the 52-week high reflects price underperformance relative to earnings growth of +9.6%; the stock has been 3.3% below its 50-DMA in the near term.
Open questions
- ?Does the regulated-asset model provide sufficient tariff visibility to service a debt-to-equity of 150.99 if interest rates rise 100–150 basis points from current levels, and how has interest-coverage trended over the past 5 years?
- ?Is the −5% 5-year revenue decline driven by tariff resets, asset capitalisation timing, or a structural change in the allowed-return framework — and when does the next tariff period reset occur?
- ?How does POWERGRID's BESS investment thesis fit within its current regulated-return framework, and will these storage projects generate returns similar to, or different from, its core transmission assets?
- ?At a PE of 14.55 versus sector peers averaging 60–80x, what assumptions about earnings growth or balance-sheet risk would need to change for POWERGRID's multiple to converge toward or diverge further from sector norms?
Peer comparison: Power
Ranks 2 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| POWERGRID | Power Grid Corporation of India Ltd.You're viewing | 14.5 | +16.5% | 37 |
| Industry avg | across 5 peers | 63.9 | +12.6% | 22 |
| ADANIPOWER | Adani Power Ltd. | 34.9 | +20.9% | 41 |
| ADANIGREEN | Adani Green Energy Ltd. | 156.5 | +7.6% | 28 |
| ADANIENSOL | Adani Energy Solutions Ltd. | 81.5 | +9.7% | 23 |
| NTPC | NTPC Ltd. | 12.0 | +13.7% | 19 |
| TATAPOWER | Tata Power Co. Ltd. | 34.4 | +11.3% | 0 |
Technical state
Current price
₹292.25
SMA 50
₹302.19
SMA 200
₹283.52
RSI (14)
50.2 (neutral)
From 52w high
-10.1%
1Y return
+4.6%
3M return
-1.5%
50-DMA
Below
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 150.99 — a regulated transmission utility structurally carries elevated leverage, but the trend is rising and the board approved a ₹5,000 crore fundraise in FY26; continued D/E expansion tightens refinancing margins under a fixed-tariff revenue model with limited pricing power.
- medium5-year revenue growth of −5% against 5-year earnings growth of +9.6% indicates top-line contraction offset by cost efficiencies; quality score of 37 and fundamental consistency score of 43 are below the sector mid-point, and ROE was above 15% in only 4 of the tracked years.
- lowPrice of ₹292.25 sits 3.3% below the 50-DMA (₹302.19) and 10.1% below the 52-week high; 1-year price change of +4.59% and 3-month change of −1.5% indicate sideways-to-soft momentum.
- low1-year price-change data is unavailable for all five sector peers (NTPC, ADANIENSOL, ADANIGREEN, ADANIPOWER, TATAPOWER), making sector-relative price momentum comparisons incomplete for this run.
Cross-section contradictions
- 5-year earnings growth of +9.6%, FCF positive in 4 of tracked years, and a 4.19% dividend yield contrast with a 1-year price gain of only +4.59% and a 10.1% drawdown from the 52-week high — the market appears to be assigning a subdued multiple to an earnings-growing utility.
- RSI of 50.23 (neutral) and the stock trading above its 200-DMA (₹283.52) suggest no acute technical distress, while simultaneously sitting 3.3% below the 50-DMA and carrying a rising debt trend — near-term technical neutrality coexisting with a structural leverage concern.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 21 Jun 2026 · rotates through NIFTY 500 every ~5 days