PGCIL records 11 per cent capex growth in Q1FY27, capitalization trebles

Power Grid Corporation of India Ltd (PGCIL) has recorded a 11 per cent year-on-year growth in capital expenditure (capex) during the first quarter (Q1: April to June) of FY27.

According to an investor presentation filed on stock exchanges, PGCIL’s capex grew by 11.2 per cent to reach Rs.7,765 crore in Q1FY27 from Rs.6,981 crore in Q1FY26.

Capitalization saw a manifold growth – more than trebling to Rs.5,277 crore from Rs.1,683 crore, by the same comparison.

PGCIL has retained the capex and capitalization guidance for FY27, at Rs.37,000 crore and Rs.30,000 crore, respectively.

It may be recalled that FY26 was a momentous year for PGCIL with both capex and capitalization recording highest achievements, at least in recent history.

 

 

Major elements commissioned

During Q1FY27, PGCIL commissioned 1,635 ckm of transmission lines and 10,500 MVA of substation/transformation capacity, mainly through TBCB projects.

Speaking of 765kV lines, the Central PSU commissioned the Kurnool-III – Mahehswaram and Dausa-Beawar lines, two circuits in each case. With respect to transformation capacity, one 765/400kV, 1×1500 MVA transformer each was commissioned at the Bikaner-III, Fatehgarh-III, Khavda Pooling Station-3 and Padghe GIS substations.

The presentation also observed that during Q2FY27 so far (July 1, 2026 to August 7, 2026), several lines were commissioned, which included 765kV Raichur — Koppal-II, 400kV Gadag-II – Koppal-II and 400kV Bikaner-II – Bikaner-III.

 

Work in hand

As of June 30, 2026, TBCB projects (mainly interstate but also intrastate) dominated PGCIL’s work-in-hand, with a preponderant share of 83 per cent – or Rs.1,46,315 crore in value terms. RTM (regulated tariff mechanism) projects aggregated Rs.25,168 crore, standing for 14 per cent of the total. It may be mentioned that two large projects that were assigned to PGCIL on RTM basis are no longer going to be pursued, as per directives issued by the Union power ministry. These are Ladakh HVDC project (Rs.22,942 crore) and offshore wind evacuation in Tamil Nadu and Gujarat (Rs.13,142 crore).

The total work-in-hand, at around Rs.1,75,000 crore, also included a small share of 3 per cent from areas like smart metering, transnational lines, BESS, etc.

 

TBCB opportunity

PGCIL has estimated a total business opportunity of Rs.1,19,495 crore from TBCB projects – both interstate and intrastate. Of this, PGCIL has estimated that 25 projects worth Rs.73,875 crore are currently under bidding, while the remaining Rs.45,620 crore would come from upcoming tenders.

The 25 projects under bidding include 16 intrastate (InSTS) schemes worth Rs.14,603 crore and nine interstate (ISTS) ones with an aggregate approved cost of Rs.59,272 crore.

Incidentally, the biggest ISTS-TBCB scheme currently under bidding is the HVDC scheme aiming at RE evacuation from the Barmer Complex in Rajasthan. Housed under “Barmer HVDC Power Transmission Ltd,” this scheme is expected to cost nearly Rs.25,000 crore.

 

Featured photograph is for representation only