Synopsis: Shares of Power Grid jumped after it secured a major interstate transmission project in Karnataka. Through this deal, nearly 3 GW of renewable energy will be transmitted under the BOOT model.
The share of India’s largest electric power transmission utility is in focus after it secured a key order for an interstate transmission project in Karnataka. In this article, we will delve further into the details.
With a market capitalisation of Rs 2,44,420 crore, the shares of Power Grid Corporation of India Ltd reached a day’s high of Rs 264.20 per share, up 2 percent from its previous day’s closing price of Rs 259.50 per share. Over the past five years, the stock has delivered a robust return of 129 percent, outperforming NIFTY 50’s return of 80 percent.
About the order
Power Grid, through a stock exchange filing, announced that it has emerged as the successful bidder for an inter-state transmission project in Karnataka to support renewable energy evacuation (shifting). The scope of the projects includes the transmission (movement) of nearly 3 GW of green power from Davanagere and Bellary, strengthening the region’s power infrastructure.
The project will be developed under the BOOT model (Build, Own, Operate and Transfer), where the company (Powergrid) will build and operate the asset before transferring it later. It involves setting up a 400 kV double-circuit transmission line (high-voltage power line) along with associated works and capacity upgrades at the Davanagere and Bellary pooling stations.
Financial and other highlights
The revenue from operations for Power Grid stands at Rs 11,476 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 11,278 crores, up by about 2 per cent YoY. Additionally, on a QoQ basis, it reported a growth of 2.5 percent from Rs 11,196 crore.
Coming down to its profitability, the company’s net profit stood at Rs 3,566 crore in Q2 FY26, down from Rs 3,793 crore in Q2 FY25, which is a decline of 6 percent YoY. Additionally, on a QoQ basis, it reported a net profit of Rs 3,631 crore, which is a decline of 2 percent.
As of Q2 FY26, Power Grid had orders worth Rs 1,52,287 crore, of which Rs 1,02,992 worth of orders were secured from competitive bidding, followed by Rs 37,100 crore from the new regulated tariff mechanism (fresh projects where tariffs are fixed by the regulator), Rs 9,542 crore from the ongoing regulated tariff mechanism (expansion or continuation of existing regulated projects) and Rs 2,653 crore from others.
Power Grid Corporation of India Limited is a Maharatna public sector company under the Ministry of Power in India. They operate one of the largest power transmission networks in the world, ensuring electricity flows smoothly and reliably across the country. Recently, they’ve also expanded into telecom and consultancy services.
POWERGRID isn’t just about transmission lines and towers, they play a key role in integrating renewable energy and maintaining the stability of the national grid. Their load dispatch centres keep the entire system balanced, no matter how much demand changes.
The company operates 1,553 transmission lines covering over 181,054 circuit kilometres, supported by 287 substations with a total capacity of 5,82,516 MVA. The inter-regional transmission capacity stands at about 101 GW, which is roughly 84 percent of India’s total. The entire network operates at an impressive 99.83 percent availability.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Maharatna stock jumps after securing inter-state transmission project in Karnataka appeared first on Trade Brains.