Power Grid Corporation of India Ltd (PGCIL) has witnessed a big jump in capitalization during the first half (H1: April to September) of FY27.
The Central PSU achieved capitalization of Rs.9,300 crore during H1FY27, more than twice the Rs.3,888 crore seen in H1FY26.
Capitalization broadly refers to capital expenditure converting into fully operational assets. It may be noted that capitalization is achieved only when all the elements of a project are commissioned. Cases where only some elements of a project are commissioned does not imply capitalization.
The H1FY27 achievement was possible largely due to the full commissioning of two interstate TBCB schemes – Ramgarh II and Bidar Transmission system – housed respectively under subsidiaries “Powergrid Ramgarh II Transmission Ltd” and “Powergrid Bidar Transmission Ltd.”
It may be mentioned that in October 2026 (after H1FY27), PGCIL fully commissioned an ISTS-TBCB scheme housed under “Powergrid Koppal Gadag Transmission Ltd,” which would contribute to the capitalization in H2FY27.
For FY27 as a whole, PGCIL has projected capitalization to be in the region of Rs.25,000 crore to Rs.30,000 crore. This would be comparable to the FY26 level when the Central PSU had achieved Rs.28,206 crore.
Elements commissioned
In the second quarter (Q2: July to September) of FY27, PGCIL commissioned 981 ckm of transmission lines and 14,600 MVA of transformation capacity. Together with the accomplishment in Q1FY27, the Central PSU closed H1FY27 with 2,616 ckm of lines and 25,100 MVA of transformation capacity commissioned.
Important lines to commission in Q2FY27 included: Koppal-II PS to Raichur, Bidar PS t0 Maheshwaram and Sikar-II to Khetri (all of 765kV). The Koppal-II PS and Bidar PS were also commissioned during the said quarter.
Capex
PGCIL incurred capital expenditure of Rs.16,864 crore during H1FY27, up 9.6 per cent from Rs.15,385 crore in H1FY26. For the full FY27, PGCIL has projected capital expenditure to be in the range of Rs.37,000 crore to Rs.40,000 crore. It may be mentioned that PGCIL closed FY26 with capex of Rs.39,967 crore, which is the highest capex in any fiscal year in PGCIL’s history.
PGCIL’s capex, in the coming quarters, is expected to be bolstered by the company’s impressive performance in the TBCB market during H1FY27. Considering interstate transmission system (ISTS) schemes alone, PGCIL cornered a tariff-based market share of 62 per cent as discussed in tndindia.com’s exclusive study dated October 8, 2026.
Bidding pipeline
PGCIL expects a bidding pipeline of around Rs.67,200 crore from interstate (ISTS) and intrastate (InSTS) transmission projects. Of these bidding for 28 projects, with an aggregate outlay of Rs.63,086 crore, is currently underway, PGCIL said in an investor presentation.
These 28 projects cover 10 ISTS schemes worth Rs.45,620 crore, and 10 InSTS projects with aggregate outlay of Rs.17,466 crore, the presentation noted.
Meanwhile, the Central PSU’s power transmission-related work-in-hand, as of September 30, 2026, was in the region of Rs.2.2 trillion, dictated by TBCB projects to the tune of 89 per cent.
Featured photograph (source: PGCIL) showing a section of the Central PSU’s 765kV Nizamabad-Wardha line is for representation only