SYNOPSIS: PSU power major ramps up capex to Rs. 82,000 crore, boosting transmission growth visibility, while EPC players stand to benefit from strong project pipeline, rising renewable integration, and sustained infrastructure investments.
During Tuesday’s trading session, shares of a Maharatna CPSU and India’s largest electric power transmission company recovered nearly 6 percent from the day’s low on BSE. The company shared key takeaways from its investor presentation on 23rd March, highlighting a revised guidance for both capex and asset capitalisation in FY26.
With a market cap of Rs. 2.78 lakh crores, shares of Power Grid Corporation of India Limited (PGCIL) closed at Rs. 299.2 on BSE, as against its previous closing price of Rs. 301.65. The stock has delivered positive returns of around 3 percent in the last one year, but has fallen by around 2 percent in the last one month.
Investor Presentation
Power Grid Corporation of India Limited (PGCIL) shared key takeaways from its investor presentation on 23rd March, highlighting a revised guidance for both capital expenditure and asset capitalisation in FY26.
The company’s strong execution track record is reflected in its significant capital investment and asset growth over the years. Between FY21 and FY26, it has undertaken a capex of over Rs. 1 lakh crore, alongside capitalisation exceeding Rs. 90,000 crore, indicating robust project execution and asset creation.
This sustained investment has led to a steady expansion in its gross fixed assets, which have grown at a 10-year CAGR of around 10 percent. The asset base has increased from ~Rs. 1.21 lakh crore in FY16 to over Rs. 3 lakh crore expected by FY26.
The company has further revised its FY26 capex and capitalisation guidance, demonstrating strong execution despite a challenging operating environment. The capex guidance has been progressively increased from an initial Rs. 28,000 crore to Rs. 32,000 crore, and further to Rs. 35,000 crore. Notably, the company has already achieved Rs. 35,540 crore in capex as of 22nd March 2026, representing around 102 percent of the latest guidance achieved as on 22nd March 2026.
Similarly, capitalisation guidance has been revised upward from Rs. 20,000 crore to Rs. 22,000 crore, and subsequently to Rs. 25,000 crore. As of 22nd March 2026, PGCIL has achieved capitalisation of Rs. 22,749 crore, representing around 91 percent of the latest guidance.
Further, Power Grid has outlined a strong multi-year capex and capitalisation roadmap, supported by a visible project pipeline that is expected to drive future growth. Capex has steadily increased from Rs. 9,060 crore in FY22 to Rs. 35,000 crore in FY26, with further plans to scale up to Rs. 37,000 crore in FY27 and Rs. 45,000 crore in FY28. Overall, the company has planned a capex outlay of ~Rs. 82,000 crore over FY27-FY28.
Meanwhile, the company’s capitalisation stood at Rs. 20,695 crore in FY22 and is projected to rise to Rs. 25,000 crore in FY26, further increasing to Rs. 30,000 crore in FY27 and Rs. 35,000 crore in FY28. In total, capitalisation is expected to reach around Rs. 65,000 crore over FY27-FY28, highlighting strong visibility of asset creation and long-term growth.
Key Stocks Beneficiaries
As of March 2026, the Power Grid Corporation of India (PGCIL) has significantly aggressively scaled its infrastructure roadmap, raising its FY26 capex guidance to Rs. 35,000 crore and proposing Rs. 82,000 crore for FY27-28. Following are three stocks that stand out as the primary “picks and shovels” of this national grid electrification:
I. KEC International Limited
With a market cap of Rs. 14,401.4 crores, the stock surged nearly 7 percent to hit an intraday high at Rs. 548.4 on BSE, as against its previous closing price of Rs. 514.25.
As of late December 2025, the Delhi High Court granted permission to KEC International Limited to participate in project tenders, including those floated by Power Grid Corporation of India Limited. This follows an earlier restriction imposed by PGCIL on 10th November 2025, which barred the company from bidding for its projects for a period of nine months.
In November, KEC International reported a year-to-date (YTD) order intake of Rs. 17,066 crore for FY26, reflecting a 17 percent YoY growth. However, the contribution from PGCIL to the order book has declined significantly, accounting for just 4 percent in FY26 compared to 27percent in the previous year.
KEC International Limited operates as a diversified infrastructure EPC company, engaged in engineering, procurement, and construction across segments such as power transmission and distribution, railways, civil infrastructure, cables, and other related businesses.
II. Kalpataru Projects International Limited
With a market cap of Rs. 17,945.6 crores, the stock surged over 5 percent to hit an intraday high at Rs. 1,073.2 on BSE, as against its previous closing price of Rs. 1,018.8.
During the Q3 FY26 concall, the management indicated that growth momentum in India’s transmission and distribution (T&D) sector is expected to remain robust, driven by strong investments in renewable energy integration and rising electricity demand. This outlook is further supported by the capex trajectory of Power Grid Corporation of India Limited, along with an estimated annual project pipeline of around Rs. 90,000 crore over the next four years.
III. Larsen & Toubro Limited
With a market cap of Rs. 4.83 lakh crores, the stock surged over 6 percent to hit an intraday high at Rs. 3,548 on BSE, as against its previous closing price of Rs. 3,341.9.
In late February 2026, L&T’s Power Transmission & Distribution (PT&D) vertical secured “major” orders (classified between Rs. 5,000 crore and Rs. 10,000 crore). These projects include the design and construction of two 220 kV Gas Insulated Substations (GIS) in the Durgapur-Raniganj-Asansol industrial belt, a key modernisation initiative managed under PGCIL’s grid reliability framework.
These projects use advanced multi-circuit towers and high-capacity conductors. For PGCIL, these GIS units are critical because they occupy significantly less space than traditional air-insulated substations, making them ideal for India’s dense industrial corridors.
Financial Performance Q3 FY26
For the quarter, PGCIL posted a consolidated revenue from operations of Rs. 12,395 crores, reflecting a sequential growth of around 8 percent QoQ compared to Rs. 11,476 crores in Q2 FY26. Likewise, on a year-on-year basis, revenue grew marginally by over 10 percent from Rs. 11,233 crores recorded in Q3 FY25.
Net profit for the quarter stood at Rs. 4,185 crore, indicating a rise of around 11 percent QoQ from Rs. 3,566 crores in Q2 FY26, as well as a rise on a year-on-year basis by nearly 8 percent from Rs. 3,862 crores reported in Q3 FY25.
Power Grid Corporation of India Limited, a Maharatna CPSE under the Ministry of Power, is mainly engaged in the business of transmission of power through its EHVAC (Extra-High-Voltage Alternating Current) and HVDC (High-Voltage Direct Current) transmission infrastructure. Notably, the company operates the world’s largest 765 kV transmission network.
The company has a strong execution pipeline with a total order book amounting to around Rs. 1.45 lakh crore as of January 2026. A significant portion of this comes from tariff-based competitive bidding (TBCB) projects, contributing ~Rs. 1.09 lakh crore. Projects under the new regulated tariff mechanism account for Rs. 23,608 crore, while ongoing regulated tariff projects add another Rs. 9,934 crore. Additionally, other segments, including cross-border projects, data centres, smart metering, and international projects, contribute Rs. 2,204 crore.
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