Power Grid shares jump 3% after securing three inter-state transmission projects

Power Grid, India’s largest power transmission company, said in a regulatory filing on Tuesday that it has been declared the successful bidder for the projects, which will be developed under the build, own, operate, and transfer (BOOT) model. The company received the letter of intent (LoI) for these projects on March 3.

The first project involves the transmission system for Rajasthan Renewable Energy Zone (REZ) phase-5 (Part-1: 4 GW), including augmentation at the under-construction Sirohi substation and the development of 765kV double-circuit transmission lines across Rajasthan and Madhya Pradesh.

The second project focuses on the augmentation of transformation capacity at the Banaskantha (Raghanesda) power station in Gujarat. The third project involves integrating the Kurnool-IV REZ – phase-I (4.5 GW), with the establishment of a new 765/400/220kV pooling substation in Kurnool and transmission lines across Andhra Pradesh and Karnataka.

Power Grid reported a 4.1% year-on-year decline in net profit to Rs 3,861.6 crore in the third quarter ended December 2024, missing consensus estimates. Revenue from operations fell 3% to Rs 11,233 crore during the December quarter, while EBITDA dropped 6.9% to Rs 9,537.9 crore.

Shares of Power Grid closed 0.6% higher on Tuesday at Rs 254.05 on the BSE. The stock has lost 13.8% over the past year and is down 23.7% in the past six months. According to Trendlyne data, the average consensus target price for the stock is Rs 341, implying a potential upside of 34%. Out of 23 analysts covering the stock, 14 recommend a “buy,” three suggest a “hold,” and six advise a “sell.”Also read | Can Zomato shares hit Rs 310? Bernstein sees 35% upside despite quick commerce losses

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