PSU power stock with a CAPEX plan of ₹23,000 Cr for FY25 to add to your watchlist

During Friday’s trading session, the shares of a Maharatna CPSU and India’s largest electric power transmission company moved down by nearly 4 percent to hit an intraday low at Rs. 270.05 on BSE. 

Stock Performance

With a market cap of Rs. 2.58 lakh crores, the shares of Power Grid Corporation of India Limited (PGCIL) closed in the red at Rs. 278.3, down by nearly 1 percent, as against its previous closing price of Rs. 281.25. 

The stock delivered positive returns of nearly 4 percent in one year, but around 9 percent of negative returns in the last one month. 

Capex Plans & Order Book

PGCIL reported a capex plan of Rs. 23,000 crores for FY25. This includes Rs. 3,914 crore allocated for the regulated tariff mechanism (RTM), Rs. 14,209 crore for Tariff-Based Competitive Bidding (TBCB), and the remaining Rs. 4,877 crore for other projects.

The company’s initial capex estimate for FY24-25 was Rs. 18,000 crores in the last quarter, but it has now been revised upward to Rs. 23,000 crores.

In terms of project execution, PGCIL completed projects worth Rs. 4,615 crores in Q1 FY25, Rs. 5,387 crores in Q2 FY25, and Rs. 7,649 crores in Q3 FY25, totalling Rs. 17,651 crores in project execution so far.

As of 31st January 2025, PGCIL’s total ongoing projects are valued at approximately Rs. 1,43,749 crores. This includes ongoing RTM projects worth Rs. 8,333 crores, new RTM projects valued at Rs. 38,568 crores, TBCB projects worth Rs. 93,681 crores, and other projects totalling Rs. 3,168 crores, which encompasses cross-border initiatives, data centres, smart metering, and solar generation (Nagda).

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Financials

PGCIL reported a marginal decline in revenue from operations, experiencing a year-on-year fall of nearly 2.7 percent, decreasing from Rs. 11,550 crores in Q3 FY24 to Rs. 11,233 crores in Q3 FY25.

Similarly, during the same period, the company’s net profit decreased from Rs. 4,028 crores to Rs. 3,862 crores, representing a decline of around 4 percent YoY.

About the company

Incorporated in 1989, Power Grid Corporation of India Limited is principally engaged in the implementation, operation and maintenance of Inter-State Transmission System (ISTS), Telecom and consultancy services.

The company is controlled by the Government of India (GOI), being a Central Public Sector Enterprise (CPSE) under the Ministry of Power, with GOI holding 51.34 percent of equity shares capital issued and paid up.

Written by Shivani Singh

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