Power Grid Corporation of India Limited (POWERGRID) Earnings Call Transcript & Summary

Ladies and gentlemen, we start on behalf of Power Grid Corporation of India Limited, we welcome you to the analysts and institutional investors meet organized to discuss the company's business and outlook post the declaration of the unaudited financial results for the quarter ended 31st December and 9 months ended 31st December. To introduce the dignitaries on the dais, I call upon the Company Secretary, Mr. Satyaprakash Dash to please do the honors.

Thank you, Bakul. Good morning, everyone. I'm pleased to welcome you to Power Grid Corporation of India Limited's Analysts and Institutional Investors Conference. Today, our senior management is here. And we'll discuss about our company's business and performance outlook based on our recently announced financial results. So let me introduce our esteemed senior management team, Dr. R. K. Tyagi, Chairman and Managing Director, Shri G. Ravisankar, Director Finance and CFO, Dr. Yatindra Dwivedi, Director Personnel; Naveen Srivastava, Director Operations, Shri B. Vamsi Rama Mohan, Director Projects. We shall now watch a short corporate video on our Power Grid's performance. [Presentation]

Thank you. Now I would like to invite our Chairman and Managing Director, Dr. R. K. Tyagi to deliver the opening remarks and presentation. Following that, we shall have the Q&A session. Sir, over to you, sir.

Good morning, respected investors, my colleagues on the dais, all board members. Ladies and gentlemen, today's Investor Meet, we will be sharing the achievements of Power Grid, what challenges we were facing last year. With the support of government of India, with the support of our stakeholders, we have been able to resolve many of the issues. And now our execution of projects, our performance is improving in all areas unlike last year, wherein we had a number of challenges in commissioning of projects. So I'll be sharing the details during my presentation. My presentation will cover highlights, project execution, how we are operating our assets, then financials for quarter 3 and for 9 months, what we are doing in other businesses and what is our business outlook for Power Grid, how Power Grid is playing role in ESG, CSR and different areas and awards what we are winning. Key highlights. Power Grid has become INR 3 trillion plus gross fixed asset company. It is a leading national transmission company, not in India, but in the world. We are a backbone transmission company for supply of electricity from any corner of the country and to any other part of the country. Then second part is FY '26 CapEx and capitalization. It is on track. I can assure you that we are poised to exceed our annual guidance, which we have been talking. We have entered in Africa50 with a partnership with Africa50 in Kenya, particularly one 400 kV and 220 kV project, we will be starting shortly. Considering energy storage in battery, so we have ventured into first battery energy storage project Build-Own-Operate in Andhra Pradesh. Towards ESG, we have recently commissioned first 400kV/220 kV 315 MVA transformers using synthetic ester oil, which is vegetable oil. It is easily -- it can be easily decomposed unlike mineral oil. So it is a step towards ESG. Then earlier, we had, in 2019, we had commissioned 400 kV reactor also. In between 2 transformers, one at Aizawl, one at Pusauli, we had retrofilled ester oil from mineral oil. In renewable, we have our power consumption, we have achieved our target of 50%, which we committed in front of you for -- by 2025, December, we have achieved this target. As you know that Power Grid is a Government of India, major shareholding company, 51.34%, then FII is about 24%, domestic IIs 20%. For '24-'25, again, like all the years last -- so many years, we have been achieving MoU rating of excellent by Government of India, Department of Public Enterprise. As I told that gross fixed assets for the first time, it has crossed INR 3 trillion. Our credit ratings, as usual, it has -- it is very good, excellent. These are Power Grid Board members, my team, where we have functional directors, independent directors and government nominee directors and the lady director also, we have -- which was for some time, it was not there. But for last 2, 3 quarters, we have Madam Sajal Jha as Independent Director. We have one of the largest transmission network in the world by any utility. It is 1,83,174 circuit kilometers. With 1,566 number of transmission line, our substations with the last commissioning of Ahmedabad, then Ananthapuram, it has increased to 288 with 599,000 MVA capacity. Interregional capacity, that means power flow capacity from one region to another region, it is 1,01,000 megawatt. Our transmission system availability is 99.84%. These are the details of various voltage level substations. We have 18 HVDC station, 70 numbers of 765 kV substations, which is the highest in the world by any utility. Then 400 kV, 169 and 400 kV and below 31 numbers. We have, for grid stabilization, SVC and STATCOMs and transformers and reactors, we have fleet of more than 4,000 transformers and reactors. We are the richest company operating 765 kV transmitted network, which is the backbone of India's power sector. In CapEx and capitalization and what elements we have recently commissioned. In 9 months, our CapEx has been INR 26,761 crores as against INR 17,651 crores. We have already crossed target of INR 28,000 crores CapEx, which we committed, which we had target with Government of India. We have already achieved INR 29,200 crores CapEx. And we have a target to exceed INR 32,000 crores CapEx this year by March 2026. In capitalization, we have -- in 9 months, we capitalized assets worth INR 12,915 crores as against INR 7,423 crores last year. And as on 31st January 2026, we have commissioned projects worth INR 18,700 crores. And we have target of achieving more than INR 22,000 crores as against our target of INR 20,000 crores, which we committed during this year. So we want to surpass that target. The major elements which are likely to be commissioned in balance 2 months will be Bhadla III - Sikar II; Bhadla III to Ramgarh, then Navsari to Padghe, Maheswaram to Kurnool and Navsari to Kala. These are the major elements which we will be commissioning. These are the elements, which have been commissioned since last quarter after 30th September 2025. Khetri - Narela, which was a very, very critical line for power evacuation, especially green energy from Rajasthan, Ahmedabad - Lakadia and Ahmedabad - Navsari have been commissioned. These 2 lines also were very critical, very much required for evacuation of power from Khavda area, KPS 1, KPS 2, KPS 3. The Bhadla II to Sikar II, this was also 1 of the much awaited transmission line. It has been commissioned. Then Banaskantha to Ahmedabad, Kishenpur to Kishtwar, Kurnool III to Ananthapuram. Ananthapuram also has been charged now. And once generation comes, then power will start flowing from Ananthapuram to Kurnool III, then Kurnool II and subsequently to Nellore, Raichur and other areas. Then 400 kV, Maharani Bagh, Narela, that means power being generated in RE area in Rajasthan through Sikar, Khetri, it will be coming to Delhi, through Narela, then to Maharani Bagh. So this has also been commissioned. Major transformers, which have been commissioned, the 1,500 MVA ICT at Kotra, then Khavda II 1500 MVA ICT. Ahmedabad also, we have commissioned 1 transformer of 1,500 MVA. Then 3 transformers of 4,500 MVA capacity at Narela substation, 1,500 MVA each capacity. So put together 4,500 MVA. Then Khavda II, again 1 more transformer of 1500 MVA ICT 6, Indore 1,500 MVA 760/400 kV and 2 numbers, 1,500 MVA ICT at Dausa substations. In 400 kV, Kurnool III 500 MVA, then upgradation at Bawana from 315 to 500 MVA for meeting requirement of Delhi. Then 2 number ICTs at Fatehgarh-III, than 1 number at Bhuj, 1 number at Bhachau. And two stations at Narela and Ananthapuram have been commissioned since last 30th September. In operations, as usual, we are always excellent. We have been maintaining availability better than or at least at par with the international best utilities in the world and our reliability or annual tripping per line is also comparable or better than international best utilities, which is 0.21 tripping per line. For taking care emergencies, disasters, we have mobile substation similar to transmission line where we have emergency restoration system. So we have recently procured emergency restoration system for substation also. It is a mobile GIS mounted on the trailer. So wherever there is a failure because of any reason, natural disaster or maybe normal failure also, and we are not able to restore the normal system, then this mobile GIS substation can be installed in that particular location to restore electricity immediately. So this has been procured, and we have -- we are in the process of procuring at 400 kV also and 132 kV. So far, we have only procured 220 kV, but 132 and 400 kV have been ordered and there will be also coming very shortly. In financials, our total income for 9 months is INR 35,714 crores; EBITDA, INR 29,846 crores, profit after tax for 9 months is INR 11,382 crores, net worth is INR 98,906 crores, gross fixed asset INR 3,04,000 crores, our debt-equity ratio is 59:41. If we compare with the last year Q3 to FY '25 to FY '26, total income has increased from INR 11,609 crores to INR 12,436 crores. There is an increase of 7%. If we talk of 9 months revenue or income, it has increased from INR 33,843 crores to INR 35,041 on a stand-alone basis. There is increase of 4%. And after considering these expenses, depreciation and other things, our profit after tax for Q3 has increased from INR 3,894 crores to INR 4,160 crores, which is an increase of 7% in Q3 versus Q3. And if we talk of 9 months, it has increased from INR 11,017 crores to INR 11,368 crores. There is an increase of 3%. On a consol basis, income has increased from INR 11,743 crores to INR 12,599 crores. There is an increase of 7%. And in 9 months also, there is increase from INR 34,869 crores to INR 35,714 crores. There's an increase of 2%. And profit after tax is an 8% increase. That is INR 3,862 crores. It has become INR 4,185 crores. But in 9 months because last year, we got some special income, it has -- from INR 11,379 crores, it has increased to INR 11,382 crores, which is only nominal increase is only there. So we will be telling the details why it is almost matching with the last year. So there was onetime income last year. So -- in financial performance, our gross fixed assets on a stand-alone basis has increased from INR 2,63,000 crores to INR 2,69,000 crores. On consol basis, it has increased from INR 2,88,000 crores to INR 3,04,000 crores. Capital work in progress, it has increased from INR 29,000 crores to INR 50,000 crores work in progress. Our debt has increased from INR 1,29,000 crores to INR 1,43,000 crores because number of projects are going on now. Our net worth, as I told that it has increased from INR 91,000 crore to INR 98,000 crores. Earnings per share is INR 12.23 and now it is INR 12.24. And the book value per share is INR 106.34 as against INR 98.51 last year. Our debt-to-equity ratio is 59:41 maintained. And return on net worth, it is 11.51% as against 12.42% because the net worth has increased and profit is almost same. These are some key financial information. The income from previous period from INR 63 crores, it has become INR 509 crores. Interest on differential tariff INR 95 crores as against INR 102 crores, interest from subsidiaries and JVs, INR 802 crores as against INR 560 crores; incentive INR 239 crores as against INR 150 crores. And dividend from JVs INR 22 crores; dividend from subsidiaries INR 347 crores. Dividend from associates, CSR expenses INR 130 crores, against INR 161 crores, FERV INR 166 crores as against INR 238 crores. Equity in TBCB INR 5,543 crores as against INR 4,390 crores. Equity in TBCB under construction. It has increased to INR 4,268 crores. Our short-term loan is INR 5,500 crores. These are the commercial performance as against billing of INR 28,161 crores, realization is 103%, which is INR 29,024 crores. And lowest ever trade receivable days has reduced to 24.65 days at the end of Q3 -- quarter 3. In telecom and consultancy, our income has increased from INR 825 crores to INR 879 crores. We have received 1 order worth INR 206 crores. It is a multi -- multiyear order. 18 numbers customers have been added, then backbone availability is maintained 100% like earlier years. And our telecom network is more than 1 lakh kilometers. In consultancy, the income has increased from INR 427 crores to INR 1,173 crores. New orders, we have 5 numbers ongoing 77%. Then international, we have 2 orders from international as well as ongoing 14 numbers. We have footprints in 25 countries. In the business outlook, as you know that India is going forward, $10 trillion economy, then it will require rapid industrialization and urbanization. It will require EVs. It will require green hydrogen. It will require data centers. We know that by 2032, 600 GW of non-fossil fuel capacity, power capacity is going to be added. Then 71 GW will be additional electricity demand only for green hydrogen by 2032. In energy storage, we have 47 GW BESS, that is battery-based energy storage by 2032. And pump hydro 27 GW, it will be enabler for RE balancing and RTC supply. In global energy integration, our vision of our honorable Prime Minister for One Sun, One World, One Grid, it will have a number of cross-border and international interconnections with the SAARC countries, then we will have Middle East and many more interconnections are likely to be there in future for global energy integration. As on today, we have INR 1,45,513 crores works in hand. Apart from INR 50,000 crore projects work in progress. So we have INR 1,95,000 crores worth projects which are to be commissioned in next 3 to 4 years. Out of which, tariff-based competitive bidding, we have INR 109,000 crores, the new regulated tariff mechanism, it is INR 23,000 crores, ongoing RTM projects, INR 9,934 crores and others like data center and other projects, we have INR 2,204 crores. The FY '26 and capitalization guidance, we commit that there will be increased from INR 28,000 crores to INR 32,000 crores and capitalization from INR 20,000 crores to INR 22,000 crores. These are the major projects, which we have won in financial year '26. One is transmission system for evacuation of power from Pumped Storage Projects in Sonbhadra. It is costing about INR 3,626 crores with tariff of INR 328 crores. Second project is interregional strengthening between SR and ER. It is INR 2,723 crores with tariff of INR 311 crores. Between NR and WR, Vindhyachal-Varanasi involving station of Prayagraj. And the cost is INR 2,368 crores with tariff of INR 323 crores. We have one, intrastate transmission project in Maharashtra. For removal of transmission constraint in Pune, it is a 765 kV/400 kV substation in Pune East, the tariff of -- which is about INR 368 crores. So cost will be somewhere about INR 3,500 crores because NCT -- because it's an intrastate project. So the cost is likely to be INR 3,500 crores and -- because it was not discussed with NCT. So NCT cost is not available in this case. Then Davanagere-Bellary INR 1,111 crores with a tariff of INR 130 crores. Between Southern region and Western Region, which is Parli-Bidar line, INR 1,007 crores with tariff INR 104 crores. Then transmission system in Davanagere, INR 379 crores with tariff of INR 42 crores. The battery energy storage, which we have won in Andhra Pradesh, it is for 150 megawatt, 350-megawatt hours. It is -- TBCB project at Kalikiri, Andhra Pradesh. It is Build-Own-Operate basis with VGF support. Then it is a large-scale and renewable energy integration project. It shall enable on-demand power availability and enhance grid stability and reliability. The estimated cost is about INR 250 crores and annual tariff is INR 29.52 crores. We are also aggressively participating in these BESS projects. And there are a number of projects, which are likely to be built out for battery energy storage. So Power Grid will be aggressively participating in those projects also. In Kenya, as you know that we have recently signed this PPP model project, transmission project, which involve a transmission line from Loosuk to Lessos. It is 165-kilometer long line and LILO of 400 kV Loyangalani-Suswa at Loosuk. It will have 2 stations, 1 at Loosuk and second at Lessos. Project 2 is a transmission line from 220kV, Kibos - Kakamega - Musaga line, LILO of both circuits of 132 kV Lessos - Musaga at Musaga (New). It will have 2 stations, 1 at Kakamega and 1 at Musaga, both of 220/132 kV. It is the first independent transmission project in Africa and risk sharing is with multilateral development partner, which is Africa50. The estimated cost is about $311 million. And we are also working with Africa50 in other countries also for similar projects on an IPP model. The challenges in project implementation, securing of land, it is a challenge, but we are getting support from all the states. Right of Way, Government of India has come out with the guidelines in June '24, then in March '25, then again in December '25. So with this guideline, we expect that ROW issues will be better to be resolved and results are already seen on the ground that we are able to commission a number of transmission projects. There are supply chain constraints, especially for transformers and reactors. Government of India is also considering this challenge, and we are talking with EEAMA, we are talking with the Indian manufacturers for augmenting their capacity for manufacturing. And in fact, with this -- the transformer manufacturing facilities of foreign countries, but available in India, they are also likely to be approved by government of India. So it will also have -- supply will improve, and this problem will be reduced. Then skilled manpower availability. Again, it is a challenge where we have already opened 4 numbers of skill development in the center at Malda, Banka, Raigarh and Basi, close to Jaipur and we are developing or we are giving training to unskilled manpower, making them skilled for transmission line works, 50 batch for 3 months training we are giving. So at 4 locations, 200 train fitters are getting trained in 3 months. So 200 x 4, almost 800 fitters are getting reading each year. That difficult terrain in Rajasthan, Gujarat, then Leh, Ladakh that area, it is a definitely difficult terrain challenges out there. Then forest and wildlife clearances, again, it is a pain point for all of us and we are discussing with government of India and government of India is supporting us in getting forest clearances also. In ESG, CSR and awards, as I told that 50% of total power consumption has been met through renewable in December 2025. It has been achieved by our rooftop solar installations across Power Grid facilities. We have 85-megawatt solar plant already commissioned at Nagda. Then pan-India, green energy initiatives reflecting green companies commitment to sustainability, is strength Power Grid ESG road map and support India's clean energy transition. Towards this, we have commissioned first -- Asia's first 315 MVA ICT at Bhiwadi. It was recently commissioned at Bhiwadi. It will improve environmental performance because it is a biodegradable and fire safety will also be taken care. And we have already ordered 2 more transformers and reactors of natural ester oil or synthetic ester oil, -- so which will also be coming shortly in a Power Grid network and they will also be commissioned. Towards reducing ROW, we have recently installed insulated cross arm in monopole, so it will help in reducing ROW from 46 meters to 31 meters. If tower of 400 kV level, it will have ROW of 46 meters. But in case of monopole with insulated crossarm, it will have 31-meter ROW. So it will reduce almost 35% to 40% ROW, and it will optimize the land utilization. It will have lower environmental and social impact. In CSR, we have taken a number of initiatives like Vishram Sadan at Siddharthnagar, then 50-bed Vishram Sadan and 500 solar lights and 500 hand pumps. It was handed over to the Siddharthnagar Administration in the presence of honorable member of Parliament, Shri Jagdambika Pal. Then the ITI at Gorakhpur was inaugurated by Honorable Chief Minister of UP, Shri Yogi Adityanath. Then advanced cancer care, Homi Bhabha Cancer Hospital at New Chandigarh. This also have been handed over to Chandigarh. Then we have got Outstanding Leadership in Asset Management Award to our Director of Operation by IIM India and 19th Exceed Award for Outstanding CSR Work in rainwater harvesting & conservation award was received by Power Grid. So thank you very much. Thank you for your patient hearing. Thank you.

Thank you for this wonderful presentation. And I take the liberty to say Chairman sir, [Foreign Language]. We now start with the next segment, which is Q&A. And I request each one of you to raise your hand, introduce yourself and the house. My team is around to get you the mic.

I just want to check, on Slide 28, you gave some of those competitive bid projects. Now when I look at the tariff and the NCT costs, doesn't look as exciting. But I'm guessing there's a lot of savings versus the NCT estimates. Could you give us a ballpark in terms of what is the average cost saving versus what NCT believes the estimates versus what Power Grid is able to do those projects at. This is on the competitively bid projects. You gave the estimated cost as per NCT.

Cost and tariff.

That's right. So I just want to get a sense of compared to that cost, typically, what is power grid on average, able to implement these projects at. I mean it will be project specific, but still on average, if you could give a sense.

And before sir starts, can you please introduce yourself?

Murtuza from Kotak.

No, whatever is -- because this is NCT cost, but the cost considered by Power Grid will be different from this cost. And based on that cost only, we have bid out this project, and we have won. And we will ensure that this project is executed within that limit.

But typically, compared to their estimates.

Sometimes it is within that. Sometimes it exceeds also. Our cost estimate will be closer to that, but sometimes it is higher than that cost.

This is Subhadip from Nuvama. Firstly, congratulations on a great set of numbers and execution for third quarter. So as you've already charted out the guidance for CapEx and capitalization for '26, for FY '27 and FY '28, can you give us your revised numbers for capitalization.

Last year -- sorry, last meet, we have given INR 28,000 crores for FY '26. We are increasing it to INR 32,000 crores as I told. And FY '27, the CapEx will be INR 37,000 crores. And FY '28, it will be INR 45,000 crores.

And for capitalization.

Capitalization FY '27, it will be INR 30,000. And FY '28, it will be 35,000 crores.

Sorry, I'll just take it the last one. Also in terms of the pipeline of TBCB projects that you're seeing in terms of fresh tenders, any ballpark number as to how large that number is on an annual basis.

Yes. There are about projects worth INR 55,000 crores projects are already under bidding. And there are about INR 15,000 crore projects, which are approved, but yet to be up for bidding. So it becomes almost INR 70,000 crores. And we -- out of INR 6,60,000 crores, the pipeline of projects up to 2032. So we have already -- considering this, we had the INR 3 lakh crore projects will be available for bidding. And balance INR 3,60,000 crores will be available for bidding, which are yet to be approved by NCT and Government of India and which are likely to be bid out in next 4 years. So there will be almost on an average INR 90,000 crore projects each year will be bid out.

So if I hear you correctly, out of INR 6,60,000 crores till FY '32, INR 3 lakh crores is done, another INR 3.60 lakh crores is due.

Yes, so INR 2,30,00 crores is already under execution or commission, INR 55,000 crores up for bidding. They are available for bidding, INR 15,000 crores yet to be available for bidding. And balance will be approved and subsequently available for bidding. So those will be INR 3,60,000 crores in 4 years, next 4 years, so that they are completed before 2032.

This is from Apoorva from IIFL. In your comments, you mentioned about company sort of getting aggressive on the battery storage. There was also a recent CERC draft proposing inclusion of storage and cost plus model. Any thoughts over there, sir? Or if you can share some plans?

Yes. There is only draft paper on this. And actually, for grid reliability, now we have almost 50,000 megawatt RE power in grid. So -- which is being generated and because this variability and intermittency of renewable energy, there will be some grid stability storage required also. So we are considering that this is the idea behind grid stability that as a transmission element, the battery energy storage will also be part of the transmission. And once this CERC draft document is approved or it is available, then there will be projects for battery energy storage in RTM also. So that is under discussion.

Sir, how large could that quantum be.

Exactly, I cannot tell, but it will be -- normally, it will be 10% of the total requirement. Suppose we have 50,000 megawatts. So normally, it is 10% to 15% of the total generation capacity.

Another question on the budget yesterday. There was a change in regime for MAT. Does it have any impact on the tax liability or treatment of tax for our SPVs? The TBCB one specifically, yes.

Actually, all the TBCB already are under the new tax regime only. So there is no -- all the TBCBs are not paying MAT if there is no profit on the income tax rule. And we are following only the old tax regime for Power Grid because we have ATIA benefits. So we'll have to evaluate that how long it will be beneficial to switch over from old tax regime to new tax regime for Power Grid. Otherwise, all other SPVs are already under the new tax regime only. And for Power Grid, anyhow, whatever you pay the taxes, it is passed through only.

We'll have to restrict because others are also -- so maybe 2 questions and then we move on. Yes, please. A little representation on the left side...

My question is on the supply chain challenges. I think the -- the Government of India -- the Government of India is working on some Chinese relaxation. Can you just help us with the kind of supply chain relaxation you've asked for the government and we expect? And can you just also highlight those challenges which are happening -- which are happening in component-wise?

Sir, can you introduce yourself?

I'm Mohit Kumar from ICICI securities.

Yes, especially for transformers and reactors as a component level as of now, there is no challenge. Only for manufacturing and assembly of transformer components like core, winding, bushing, there is challenge. As per the present capacity of our transformer manufacturers, OEMs like T&R, Hitachi, Toshiba, CG and other manufacturers. Today, we have capacity of INR 2,28,000 MVA capacity. And even if we consider their augmentation in next 2 to 3 years, the capacity is only -- it will become INR 3,98,000. Whereas demand in '26 '27 itself, it is INR 4,21,000. So unless until the Chinese companies available in India, if relaxation by Government of India is given, then it is going to boost the transmission sector. So it should be a good move for everybody.

So on clarification, are looking also for import, no, right? Import of ...

LIke already whatever components like copper, then paper, these components will be -- or core. This will be coming from outside only. Today, also, they are coming from outside. Tomorrow also they are coming because all the manufacturers, they are importing these components and assembling in India. So they will continue to be imported.

We'll have to restrict please.

Nikhil from Bernstein. The first question is Right of Way we had been a consistent challenge for us over the last 1 year or so and you highlighted it's still being a challenge. But was there a change this quarter and in January that we could see such big an improvement in capitalization?

Like in Q3 and January, yes, there was -- like when we talk of this change or modification in guideline in March '25, so these guidelines were issued by Government of India. Then subsequently, they were adopted by Government of Delhi, Government of Haryana, Government of Rajasthan, Government of Gujarat. And that time took almost somewhere -- some state adopted in July, some state adopted in August. And finally, the orders for this MRC rate or land rate were issued by respect to District Collector or District Magistrate in September and October. So after that only work has started happening. So that is why progress now it is increasing. Now in Q3, Q4, progress will be better.

So would you say it's not a temporary change we have seen. It's a structural shift we are seeing in ROW getting much better than the last couple of years.

Yes, yes. Because earlier days, there was only -- ROW area was considered 30%. And now it is not only 30% in rural area, in semi-urban, it is 45%. And this urban area like Delhi or cities, it is 60% of ROW area, we have to compensate for land value. And earlier, it was the circle rate to be paid multiplied by area, now it is market rate. And methodology also has been issued by Government of India. We say that there will be 3 valuers. One will be by the farmer, one will be by Power Grid. And these 2 valuers will give the rate marketed and average of this will be taken as market rate. If the farmers are not agreeing to this rate because there can be difference between farmer and Power Grid valuer rate, then there will be a third valuer nominated by DM. The rate of that will be considered for coming out with the market rate. So that procedure has been now streamlined.

Sumit Kishore from Axis Capital. So my first question is a follow-up on what you explained to Mohit. So the whole transformer in no situation will get imported. There will have to be localization of manufacturing and then components will get imported. Is that the right understanding?

Government of India is not considering importing transformer as a total items. It is only assembly. The way it is happening now -- it will continue to be.

So my 2 questions. First 1 is when we look at the CEA website data on physical progress of projects, so up to December, when I saw the data for progress on transmission lines, so Power Grid was 33% of the full year target. And we saw across the categories. . Similarly for substations, it was some 56% of target. So I thought that maybe the capitalization will also be weak. But how is -- how does that work? How do we track that using the physical data on progress on the CEA website. And the second question is on HVDC. So we have seen that the #2 player now is almost half the works in hand of Power Grid, at least they claim to be INR 750 billion. We've taken 2 HVDC projects. So what are the next 2 or 3 HVDC projects that are going to be awarded in the country? What is their size and time line, if you can please cover that and your strategy going forward?

Okay. The CEA website, yes, there were issues earlier as I told that by Q2, our -- the results were not good. In Q3 also, you can see that it was only INR 12,000 crores capitalization. So as of today, we have 3,300 CKM we have already achieved. Our target annual target is 5,500 circuit kilometer, out of which we have already achieved 3,300 circuit kilometer. In transformers, our target given to CEA or Government of India, it is 60,000 MVA capacity. We have already achieved 42,000 MVA and we are sure that we will be achieving almost 1,500 to 2,000 circuit kilometers by end of this financial year. So we will be very close to the target, which has been given by CEA or Government of India. And similarly, in transformation also, we will have almost 18,000 to 20,000 MVA capacity will be added in the next 2 months. So we will be very close to 60,000 MVA capacity. In case of HVDC, you told that, yes, the only -- there are only -- everybody knows that, they are all only 3 manufacturers. Hitachi, Hitachi is there, then GE is there and Siemens is there. So we have already given a project of this Khavda, Nagpur, and they are also executing this Fatehpur to Bhadla project. And then Khavda to South Olpad of Adani, although it is a different TSP. It is again -- it is by another GIS -- sorry, HVDC supplier. So we have projects like Bikaner, Barmer II to South Kalamb, which will cost almost INR 35,000 worth crore project, which is already up for bidding and OBD will be done on first April 2026. There are a number of -- more projects like Bikaner V to Begunia. This is also -- this should be shortly approved. Then there is a discussion about 320 kV, 500-megawatt, Paradip to Andaman. This is likely to be commissioned by 2031 to '32. Again, it is almost INR 31,000 crores. Then there are some projects in Brahmaputra Basin, Niglok in Arunachal Pradesh, then Namsai, Roing, Silapathar, Gogamukh Rowta. So these are some projects which are likely to be NER depending on the hydro power generation in Northeastern region. The time line will vary depending on the progress of hydro project because hydro project time is almost, say, 8 to 10 years and HVDC project is almost 4 years. So depending on the progress, these projects will be available for bidding. There is 1 more project, which is already discussed in NCT. It is Kurnool to Vishakhapatnam. So these are a few projects which are...

Can two LCCs get awarded this year. The 2 projects that you said first, 1 and 2, can they get awarded this year? About LCC, right?

Hopefully. Barmer II to South Kalamb, it is sure and there should be, I think, Bikaner V to Begunia also, it should be possible to be awarded this financial -- next financial year.

Next financial year, not this? I mean FY '27, both will be FY '27.

In FY '27, yes.

And Bikaner to Begonia is INR 300 billion or smaller?

It is 8,000, 6,000 megawatt, almost it will be again INR 35,000 crores.

Puneet from HSBC. My first question is with respect to the increase in commodity prices, how is that impacting your projects?

Commodity prices means?

Yes, copper prices, aluminum have gone up. Is it impacting your cost estimates.

Yes. So there are about the transmission lines and substations. So whatever the transmission contracts, we are awarding on a firm price only. So the metal prices are not going to impact our returns in respect to the transmission line contracts. And for substations, we have a certain PV class in the contracts, which we are actually considered during our bidding. So I don't think we are going to be impacted much on the commodity price variation.

Secondly, and do you also see increase in repair and maintenance contracts on your regulated business increasing in the near future? Or you think that's still a few years away?

No, next 5 years is already fixed. It's -- they have already given the O&M charges for the next 5 years. So next revision will be after 2029.

I meant capacity augmentation for your existing RTM projects? Is there a room for those projects to come in at a higher rate?

Yes, that we are already doing.

The capacity -- that whatever we are increasing at all, there we are doing it in ad cap, which is I suppose the life is over that we are already -- we are putting it the regulators in CERC and we will get the tariff on that.

This is Girish here from Morgan Stanley. Thanks for the detailed presentation. On the construction pipeline that you have right now, I think it's about INR 1,43,000 crores for transmission. If you can just break up the 3-, 4-year, 5-year plan because you've given capitalization for 2 years. If you can just help us within regulated and for nonregulated and within nonregulated HVDC commissioning like next 4, 5 years, if you can just pull out the numbers. And the second one was the market share question. In 9 months, how much bidding has completely happened thus far? And what's your order market share for this year?

So, Vamsi, can you just...

Yes, market share for 9 months in bidding and commissioning capitalization progression for the backlog right now. And if you can break that up in HVDC, non-HCA, and regulated.

On the HVDC front, as we have 1 project which is going on, on the TBCB, it will be for the next 3 years -- 2 to 3 years, that will be spread across the entire CapEx. We have one RTM project also under HVDC, which was given to us by the regulator. So that will be taking about another 3 years. So that Bhadrawati also is that, those are the 2 projects, which will be there in the next 3 years, the HVDC part. And most of the TBCB projects, the general TBCB projects have a range about 2 to 3 years of CapEx. So whatever is there on the TBCB as what has been shown out there that will be spread across 2 to 3 years. The remaining RTM projects are also on shorter duration. They will also be overlapping in a similar period about 18 months to 24 months, most of the projects.

And any comment on the market share for the new projects won in this fiscal year?

Yes, we are having that guidance we have about 50% to 60%. It is there. We are getting a lot of interstate projects also. So if you look into the interstate projects, we are maintaining our market share.

And just 1 clarification. Intrastate would be how big today in either your backlog?

Backlog means.

Orders in hand.

Orders in hand. How much Is intrastate right now?

Intrastate has a smaller share. Intrastate is just opening, states like Maharashtra and Karnataka opening up because these intrastate projects by and large depends upon the states how they are keen and trying to move ahead in these projects. So we see that intrastate will be gaining traction. And since there is a significant amount of projects already under the intrastate front, we are also evaluating the risks which are associated with the intrastate projects and basis that we are going in. We have as -- already as Chairman has placed it 1 of the largest intrastate projects in the state of Maharashtra is what we have recently been successful in. We are awaiting the LoA for it.

Like there was -- as per NEP guideline, there was a total -- almost INR 3 lakh crore projects under intrastate. And the -- so far, only a few projects have been awarded. So balance are yet to be awarded by a state like Rajasthan, they are talking about projects worth almost INR 60,000 crores. Similarly, Karnataka also, maybe 60,000 to 70,000 and all states where renewable is more -- so there will be a number of projects, especially in intrastate. And depending on the challenge, like if some project in Karnataka, like in Bangalore, or in Maharashtra, like in Pune or Bombay. So depending on our book position, we will be aggressively or non-aggressively bidding for those projects because being intrastate projects and very difficult projects, so we will be taking a call depending on the situation.

Yes. Sir, this is Prateek from ICICI Prudential. So just a couple of questions. So in Q3, we saw a big jump in capitalization. So just a clarification on that. So is this more of a one-off thing in terms of quarterly run rate? Or can we expect that in Q4 and going forward in H1 next year? So how do we think about it? Should we look at it on a quarterly basis, this figure will continue? Or will it be more of annual completion project?

Like the capitalization depend on the project being commissioned, it depends on the size of that particular project. If it comes in, say, Q4 or Q1 or Q2, so definitely, the percentage of that particular quarter will increase. Otherwise, we will be continuously commissioning the projects. I can tell you the projects like we have Bhadla III to Sikar II, Bhadla III to Ramgarh, we have Navsari to Padghe. We have Kurnool III to Maheshwaram. We have Ananthapuram to Kadapa. We have Navsari to Kala, which are likely to be commissioned completed in Q4. Then if we talk of Q1, we have projects like Koppal-Gadag. We will have the Koppal to Raichur. We will have Koppal to Narendra. We will have Beawar Dausa. So these projects will continue, which will be commissioned in a phased manner. And percentage of each quarter will be very difficult to tell because it depends on size of the projects, which will be commissioned in a particular quarter.

And sir, second question, so there appears to be some policy agitation regarding HVDC projects because they are quite costly. So how do we look at this? So will it impact the CapEx guide? Can it impact the CapEx guidance, let's say, from FY '28 to '30? And can the overall transmission CapEx outlook be impacted because of this?

Like I told that we have now INR 32,000 crores for FY '26, about INR 37,000 crores. We have already committed to Government of India for next financial year, FY '27, INR 37,000 crores. And FY '28, INR 45,000 crores. So when I'm talking about INR 37,000 crores and INR 45,000 crores. So definitely, our HVDC projects, major expenditure will be during that period. So once it is commissioned because this project already -- it has already completed in 1 year. So the time line is about 4 years. So after 3 years, it will be commissioned. So after 2 years, the major expenditure will happen because all equipment will start coming to India, and they will be supplied. And finally, it will be commissioned after, say, 3 years from now. So it will vary depending on the supply and expenditure.

Firstly, since it may be our last opportunity to interact with you in such a forum, many congratulations on a very illustrious career and all the contributions to the nation. . Sir, my question -- I'm Namit Arora from IndGrowth Capital. Sir, my question was in the last 3.5, 4 years, there may be a lot of initiatives that you would have taken to build on the foundation, which may not have fully borne fruit so far, but will obviously benefit the organization over the next 5 to 10 years. If you could give us some color on that.

[Foreign Language] Thank you very much. So like Power Grid is a company which was born in 1989. And we have started operations in '91, '92. So we have been taking initiatives all these years. So there is no last 3 years or 4 years, we have been taking initiatives and it is keeping on adding value to Power Grid. So similarly, in the last 3 years or you talk of any 3 years, so there have been addition of new initiatives and we shall help Power Grid in achieving our CapEx and capitalization and growth of Power Grid. like we had in FY '25 -- '24, we had this CapEx of about INR 12,500 crores. Last year, we had INR 26,000 crores. This year, we are going to have INR 32,000 crores. Similarly, we will have a capitalization also like last year, it was not much, but this year, it will be INR 22,000 crores. Next year, again, it will increase. So the initiatives which we have taken in recent past is we have made dedicated ROW cells. So the ROW cell, it is being handled from corporate office, where it is being monitored on a day-to-day basis from corporate office. So -- and in each region, there will be ROW cell. So they are discussing ROW issues of each and every tower, each and every transmission line. So that is helping us in a big way to take care, that management is aware that what is happening in this particular line. And immediately, action is taken. Suppose there is a ROW in a particular line, then if it is brought to the knowledge of management, then immediately, we discuss with the, say, Chief Secretary of that particular state or Power Secretary of Government of India. So that whatever help is required at ground, immediately, that is taken. And we are meeting with the Chief Minister of various states. The power minister is calling or having meeting with all the states. So Government of India is also helping Power Grid in resolving ROW issues. Second is like transformers and reactors, we are taking in advance. -- like I suppose I know that so many projects are coming for bidding. And after 2 years or 3 years, so many transformers will be required for commissioning. So I should have those transformers in hand, so there should not be uncertainty. That project is won, but transformer is not there. So we are procuring as a bulk transformer and each package, we are having 30 transformers, 1 package we are procuring, which will be a requirement for maybe 2, 3 substation requirement will be taking in advance only in 1 package. And such package, we are maybe 10 to 12 package each year, we are coming out with these packages. Then we also have a land acquisition cell or land acquisition department, which we are -- whenever any project is coming for bidding. So immediately -- we are -- our land acquisition cell is active, and they are going to ground and they are talking to various -- and for each project, we have -- 4 options will be there 3 to 4 options. So that in case we win the project, immediately, the land should be available. So that initiative is also helping us. Then 1 more project, 1 more initiative, I can say that the mechanization of transmission line tower erection that now we are talking of cranes, we are talking of central cranes. So it is now reality that cranes are to be used for making transmission line towers or erecting transmission line towers. We have PortaDeck mats are available that even in rains or where muddy area is there or even this mud is there, in those conditions also, we were able to work in rains also. So the PortaDeck mats are being used in last 3 to 4 years. Then we also started monitoring. We also have the control rooms in each region that all sites are connected through camera. Earlier, we had for operations, these control centers were used for only for monitoring of operation. But now project monitoring is also being done through control center, installed by camera. And we can see -- even Chairman can see in his room that what is happening in this particular project. What is the progress yesterday, what is your progress today? If any challenges there in this particular project, so the Chairman can call that project manager on the screen, on the camera and discuss what is happening in this particular project. So I remember only these initiatives. [Foreign Language] Modesty is a virtue.

Last couple of questions, and then we need to close.

Shirom Kapur from Jefferies. So I just want to understand the numbers that you shared on the capitalization guidance now and going forward has been raised. So could you maybe help us understand what has driven this acceleration in the capitalization? And maybe quantify between RTM and TBCB, what will be the rough split in the capitalization for '26, '27 and '28. And other than that, what has driven the increase in guidance? Is it -- are you expecting some projects which are scheduled to commission data coming forward? Or is just your overall works in hand expanded, if you could help with that?

Yes. Like if you see from the data that it is INR 1,45,000 crores. If we remove INR 2,000 crores worth projects for data center and other areas, it becomes INR 143,000 crores.. So most of the projects are under TBCB only. And the ongoing RTM is hardly INR 9,000 crores, INR 10,000 crores. And one RTM project, which we are talking is the Leh Pang, which is yet to be launched basically. So in next 2 to 3 years, we will have mainly TBCB project. So I can say that 80% to 90% will be TBCB, 10% to 20% will be RTM. And you are saying like what trigger or why like suddenly there is an increase in this because these RE projects are very critical projects, which are commissioned. And we don't want that any power, RE, power, green power, which is almost free, given by nature. So it should not be curtailed at any cost. So we want to focus on these projects, so that no power is curtailed in India.

Sir, the last question, [Foreign Language] Yes, we can close. May I now request L Khajkumar, he's the Executive Director, Corporate Planning, and I must congratulate him for the fantastic presentation that he and his team, they put together. So nice of you sir, please come.

Thanks. Good afternoon to all. Respected Chairman and Managing Director of Power Grid, Group members of the Board of Directors, distinguished investors and dear friends. On behalf of Power Grid, I express our sincere gratitude to our CMD and the Board for their insights and vision. That continues to steer the organization towards sustained growth and excellence. I also extend our thanks to all investors and partners for your presence and valuable participation. Your trust and confidence in power grid strengthens our resolve to deliver on our commitments and pursue continued progress in the power sector. My appreciation also goes to the organizing team for their meticulous efforts and ensuring the smooth conduct of this event. Finally, I thank all attendees for your engagement and constructive feedback, which makes this interaction meaningful. As Power Grid continues to expand transmission networks, adopt advanced technologies and pursue sustainable growth, we look forward to your continued support and partnership. Thank you once again for your faith in Power Grid. Thank you very much.