# Power Grid Corporation of India (POWERGRID.NSE)

Canonical: https://gigainvestors.com/s/POWERGRID.NSE

Analysis as of: 2026-10-16T07:33:24.230Z. Financial observations: FY2014–FY2026.

Listing currency: INR. Reporting currency: INR.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: INR 249.85 per share; close as of 2026-10-15.

Estimated value: low INR 215.06 per share, central INR 278.86 per share, high INR 316.58 per share. Buy at or below the central value INR 278.86 per share. Valuation as of 2026-10-16T07:33:24.230Z; scenarios are not confidence intervals.

Expected annual return: 12.4% at the stated quote. About 12.4% a year at today's price (required return 11.4%). required return 11.4% a year (IN 10-year bond 7.4% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.09×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.57×

- FY2018: 0.56×

- FY2019: 0.47×

- FY2020: 0.56×

- FY2021: 0.58×

- FY2022: 0.55×

- FY2023: 0.55×

- FY2024: 0.57×

- FY2025: 0.57×

- FY2026: 0.42×

### moat: fail

- The return floor includes all equity, debt and leases without deducting cash or goodwill. Only a floor above the hurdle establishes a pass.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 9.7%

- ROIC, second-lowest year: 9.6%

- Conservative return floor, median: 8.3%

- Conservative return floor, second lowest: 6.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 41.4%

- ROIC including acquisitions, ten-year median: 5.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2022: 9.6%

- FY2023: 10.9%

- FY2024: 10.8%

- FY2025: 9.7%

- FY2026: 8.3%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.76×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: INR 605B

- Net income, five-year total: INR 793B

- Return on incremental invested capital: 13.8%

- Working capital / revenue, annual change: 1.5 pp

- Working capital / revenue, change between three-year averages: 9.9 pp

- Working capital / revenue, final three-year average: 25.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.29×

- FY2023: 1.42×

- FY2024: 1.11×

- FY2025: 0.28×

- FY2026: -0.29×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- Per-share earnings: 8.01 to 16.74 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.0%

- Ordinary dilution, 5-year annual growth: 12.2%

- Market cap gain: INR 1.72T

- Cumulative retained earnings: INR 531B

- Diluted shares, 10-year annual growth: 0.0%

- Diluted shares, 5-year annual growth: 12.2%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 9.7%

- Per-share value change: INR 8.73

- Per-share value, starting three-year median: INR 8.01

- Per-share value, ending three-year median: INR 16.74

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 20.8%

- Buyback history: 4 years

- Debt-funded buybacks: Yes

- Cumulative net income, 10 years: INR 1.28T

- ROIC, last three-year median: 9.7%

Chart: Earnings per share; fiscal year observations.

- FY2017: INR 8.01

- FY2018: INR 15.67

- FY2019: INR 19.18

- FY2020: INR 21.14

- FY2021: INR 23.01

- FY2022: INR 24.12

- FY2023: INR 22.10

- FY2024: INR 16.74

- FY2025: INR 16.69

- FY2026: INR 17.13

### accounting: pass

- Sloan accruals: -8.5%

- Receivables to sales index (DSRI): 1.44×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.57×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -7.2%

- FY2018: -6.4%

- FY2019: -5.4%

- FY2020: -7.7%

- FY2021: -6.8%

- FY2022: -3.7%

- FY2023: -9.0%

- FY2024: -8.7%

- FY2025: -7.8%

- FY2026: -8.5%

## Holders

## Price story

Down 29% since Sep 2024 · sales +2.1%

Story as of 2026-10-16T09:59:56.017Z; price observation 2026-10-15.

Price needs cash profits to grow 3.5% a year for ten years

### Sales · FY2025–2026

sales +2.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: INR 257B 

- FY2018: INR 300B 

- FY2019: INR 351B 

- FY2020: INR 377B 

- FY2021: INR 396B 

- FY2022: INR 416B 

- FY2023: INR 456B 

- FY2024: INR 458B 

- FY2025: INR 458B 

- FY2026: INR 467B 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in power transmission; annual sales are INR 467.3 billion.

- Source: https://www.screener.in/company/POWERGRID/consolidated/ (filed 2026-10-16T07:33:24.230Z); FY2026: revenue 467330000000; operatingIncome 198010000000; margin = operatingIncome / revenue.

### Why customers stay

Margins ranged from 42.4% to 57% during 2024–26; it earns 9.7% on its capital.

- Source: https://www.screener.in/company/POWERGRID/consolidated/ (filed 2026-10-16T07:33:24.230Z); FY2024: operatingIncome / revenue = 57%.

- Source: https://www.screener.in/company/POWERGRID/consolidated/ (filed 2026-10-16T07:33:24.230Z); FY2025: operatingIncome / revenue = 56.5%.

- Source: https://www.screener.in/company/POWERGRID/consolidated/ (filed 2026-10-16T07:33:24.230Z); FY2026: operatingIncome / revenue = 42.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:24.230Z); 10-year return on capital observations [[2022,0.09587624760193303],[2023,0.1085811953136586],[2024,0.10811381769677164],[2025,0.09690285371882255],[2026,0.08262638486094014]]; median 0.09690285371882255. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://www.screener.in/company/POWERGRID/consolidated/ (filed 2026-10-16T07:33:24.230Z); FY2017: growth capex 162020000000; upkeep 77220000000; owner earnings 74510000000. Growth capex / owner earnings = 2.1744732250704604.

- Source: https://www.screener.in/company/POWERGRID/consolidated/ (filed 2026-10-16T07:33:24.230Z); FY2018: growth capex 169490000000; upkeep 92310000000; owner earnings 82040000000. Growth capex / owner earnings = 2.065943442223306.

- Source: https://www.screener.in/company/POWERGRID/consolidated/ (filed 2026-10-16T07:33:24.230Z); FY2019: growth capex 119100000000; upkeep 105410000000; owner earnings 100340000000. Growth capex / owner earnings = 1.1869643213075542.

- Source: https://www.screener.in/company/POWERGRID/consolidated/ (filed 2026-10-16T07:33:24.230Z); FY2020: growth capex 0; upkeep 113670000000; owner earnings 112990000000. Growth capex / owner earnings = 0.

- Source: https://www.screener.in/company/POWERGRID/consolidated/ (filed 2026-10-16T07:33:24.230Z); FY2021: growth capex 0; upkeep 96170000000; owner earnings 144580000000. Growth capex / owner earnings = 0.

- Source: https://www.screener.in/company/POWERGRID/consolidated/ (filed 2026-10-16T07:33:24.230Z); FY2022: growth capex 0; upkeep 79660000000; cash acquisitions 0; owner earnings 217218200000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.screener.in/company/POWERGRID/consolidated/ (filed 2026-10-16T07:33:24.230Z); FY2023: growth capex 0; upkeep 69030000000; cash acquisitions 0; owner earnings 218381400000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.screener.in/company/POWERGRID/consolidated/ (filed 2026-10-16T07:33:24.230Z); FY2024: growth capex 0; upkeep 114100000000; cash acquisitions 0; owner earnings 172483700000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.screener.in/company/POWERGRID/consolidated/ (filed 2026-10-16T07:33:24.230Z); FY2025: growth capex 0; upkeep 241340000000; cash acquisitions 0; owner earnings 42820700000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:24.230Z); Dividend observations: [[2017,13130000000],[2018,30340000000],[2019,45150000000],[2020,44260000000],[2021,68220000000],[2022,108120000000],[2023,85450000000],[2024,112190000000],[2025,97660000000],[2026,83710000000]]. Zero only counted when supported by a complete cash-flow statement.

### What the price says

The price assumes cash profits grow 3.5% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:24.230Z); Ten-year compound average after fade. Initial solved rate 0.03716362264556833. Price 249.85; FX 1; discount 0.11391000000000001; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 6.41 → FY2026 -4.903185080664158. Closing-price date 2026-10-15.

## Monthly share-price history (INR per share)

- 2016-11: INR 107.94 per share

- 2016-12: INR 103.22 per share

- 2017-01: INR 116.55 per share

- 2017-02: INR 108.08 per share

- 2017-03: INR 110.98 per share

- 2017-04: INR 117.00 per share

- 2017-05: INR 116.97 per share

- 2017-06: INR 118.43 per share

- 2017-07: INR 125.61 per share

- 2017-08: INR 123.33 per share

- 2017-09: INR 118.69 per share

- 2017-10: INR 119.17 per share

- 2017-11: INR 115.90 per share

- 2017-12: INR 112.70 per share

- 2018-01: INR 109.01 per share

- 2018-02: INR 111.21 per share

- 2018-03: INR 108.70 per share

- 2018-04: INR 116.92 per share

- 2018-05: INR 117.82 per share

- 2018-06: INR 105.10 per share

- 2018-07: INR 102.54 per share

- 2018-08: INR 113.34 per share

- 2018-09: INR 105.98 per share

- 2018-10: INR 104.60 per share

- 2018-11: INR 101.33 per share

- 2018-12: INR 111.74 per share

- 2019-01: INR 106.09 per share

- 2019-02: INR 102.85 per share

- 2019-03: INR 111.32 per share

- 2019-04: INR 104.85 per share

- 2019-05: INR 106.48 per share

- 2019-06: INR 116.38 per share

- 2019-07: INR 118.58 per share

- 2019-08: INR 112.78 per share

- 2019-09: INR 111.97 per share

- 2019-10: INR 111.57 per share

- 2019-11: INR 108.73 per share

- 2019-12: INR 107.02 per share

- 2020-01: INR 105.10 per share

- 2020-02: INR 102.09 per share

- 2020-03: INR 89.49 per share

- 2020-04: INR 91.15 per share

- 2020-05: INR 88.62 per share

- 2020-06: INR 98.35 per share

- 2020-07: INR 100.29 per share

- 2020-08: INR 100.66 per share

- 2020-09: INR 91.38 per share

- 2020-10: INR 96.19 per share

- 2020-11: INR 108.23 per share

- 2020-12: INR 106.79 per share

- 2021-01: INR 103.75 per share

- 2021-02: INR 120.54 per share

- 2021-03: INR 121.30 per share

- 2021-04: INR 123.78 per share

- 2021-05: INR 126.93 per share

- 2021-06: INR 130.73 per share

- 2021-07: INR 128.36 per share

- 2021-08: INR 131.51 per share

- 2021-09: INR 142.43 per share

- 2021-10: INR 138.79 per share

- 2021-11: INR 155.06 per share

- 2021-12: INR 153.30 per share

- 2022-01: INR 161.55 per share

- 2022-02: INR 156.86 per share

- 2022-03: INR 162.60 per share

- 2022-04: INR 170.81 per share

- 2022-05: INR 174.68 per share

- 2022-06: INR 158.93 per share

- 2022-07: INR 160.46 per share

- 2022-08: INR 172.20 per share

- 2022-09: INR 159.15 per share

- 2022-10: INR 171.11 per share

- 2022-11: INR 168.00 per share

- 2022-12: INR 160.27 per share

- 2023-01: INR 162.49 per share

- 2023-02: INR 166.69 per share

- 2023-03: INR 169.27 per share

- 2023-04: INR 177.94 per share

- 2023-05: INR 175.39 per share

- 2023-06: INR 191.36 per share

- 2023-07: INR 199.54 per share

- 2023-08: INR 183.41 per share

- 2023-09: INR 199.75 per share

- 2023-10: INR 202.15 per share

- 2023-11: INR 208.95 per share

- 2023-12: INR 237.20 per share

- 2024-01: INR 259.30 per share

- 2024-02: INR 282.85 per share

- 2024-03: INR 276.90 per share

- 2024-04: INR 301.85 per share

- 2024-05: INR 310.00 per share

- 2024-06: INR 330.95 per share

- 2024-07: INR 348.20 per share

- 2024-08: INR 337.40 per share

- 2024-09: INR 352.85 per share

- 2024-10: INR 320.80 per share

- 2024-11: INR 329.40 per share

- 2024-12: INR 308.70 per share

- 2025-01: INR 301.65 per share

- 2025-02: INR 250.85 per share

- 2025-03: INR 290.35 per share

- 2025-04: INR 307.45 per share

- 2025-05: INR 289.75 per share

- 2025-06: INR 299.90 per share

- 2025-07: INR 291.00 per share

- 2025-08: INR 275.25 per share

- 2025-09: INR 280.25 per share

- 2025-10: INR 288.15 per share

- 2025-11: INR 269.95 per share

- 2025-12: INR 264.60 per share

- 2026-01: INR 256.50 per share

- 2026-02: INR 298.65 per share

- 2026-03: INR 296.10 per share

- 2026-04: INR 318.35 per share

- 2026-05: INR 290.55 per share

- 2026-06: INR 286.30 per share

- 2026-07: INR 284.25 per share

- 2026-08: INR 263.55 per share

- 2026-09: INR 260.50 per share

- 2026-10: INR 249.85 per share

## Annual estimated value (INR per share)

- FY2019: low INR 188.03 per share, central INR 208.79 per share, high INR 235.12 per share

- FY2020: low INR 203.94 per share, central INR 226.29 per share, high INR 254.64 per share

- FY2021: low INR 214.50 per share, central INR 238.09 per share, high INR 268.01 per share

- FY2022: low INR 173.33 per share, central INR 192.50 per share, high INR 216.83 per share

- FY2023: low INR 232.45 per share, central INR 258.03 per share, high INR 290.49 per share

- FY2024: low INR 180.70 per share, central INR 200.60 per share, high INR 225.85 per share

- FY2025: low INR 183.35 per share, central INR 203.24 per share, high INR 228.46 per share

- FY2026: low INR 215.06 per share, central INR 278.86 per share, high INR 316.58 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:09.846Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations