Financial Performance Highlights

Q2 FY27 Consolidated Results:

  • Profit After Tax (PAT) growth: 8% Year-on-Year
  • Profit Before Tax (PBT) growth: 6% Year-on-Year
  • Transmission operating income growth: 7.7% (₹887 crore increase)
  • Regulatory asset impact: -₹354 crore due to regulatory tariff trajectory
  • One-off items impact: -₹193 crore due to regulatory timing differences
  • Net growth after adjustments: approximately 3%

H1 FY27 Operational Achievements:

  • Commissioned 2,616 circuit kilometers of transmission lines
  • Added 25,100 MVA transformation capacity
  • Completed two full TBCB SPV projects: Ramgarh-II Transmission System and Bidar Transmission System

Key Financial Metrics:

  • Gross fixed assets (standalone): ₹2.8 lakh crore
  • Gross fixed assets (consolidated): ₹3.29 lakh crore
  • Debt-equity ratio: 59:41 (1:1.5)
  • Receivable days: 10.54 days
  • Other income highlights:
  • Interest from subsidiaries: Increased from ₹794 crore to ₹1,201 crore
  • Incentive income: Decreased from ₹159 crore to ₹98 crore
  • Dividend from JVs: Increased from ₹24 crore to ₹60 crore
  • Dividend from subsidiaries: Increased from ₹300 crore to ₹345 crore

Capital Expenditure and Capitalization Guidance

  • FY27 CapEx guidance: Increased from ₹37,000 crore to ₹37,000-40,000 crore
  • FY27 Capitalization guidance: ₹25,000-30,000 crore
  • Future CapEx outlook: Expected to remain "much beyond ₹40,000 crore" in FY28 and FY29

Order Book and Project Pipeline

Current Order Book:

  • Total: ₹2.20 lakh crore
  • TBCB projects: ₹1.95 lakh crore
  • RTM projects: ₹0.25 lakh crore
  • Data center, storage, and smart meters: ₹0.04 lakh crore

Recent Project Wins (H1 FY27):

  • 9 Interstate TBCB projects: ₹7,664 crore annual tariff
  • 2 Intrastate TBCB projects: ₹443 crore annual tariff
  • Total: ₹8,107 crore annual tariff
  • Includes Barmer HVDC project and first synchronous condensers deployment (8 units)

Future Pipeline:

  • Projects under bidding: ₹63,086 crore (mostly Interstate)
  • Projects to be floated: ₹4,147 crore (Interstate)
  • Total bidding pipeline: ₹67,233 crore
  • Green Energy Corridor III: ₹1.36 lakh crore (Intrastate)
  • BESS projects: ₹50,000 crore (mostly TBCB)
  • Pang evacuation scheme: ₹31,000 crore (converted from HVDC to AC solution)

Operational Performance

  • System availability: 99.81%
  • Tripping per line: 0.17
  • Major elements commissioned in Q2 FY27:
  • 765 kV transmission lines: Koppal-II PS – Raichur, Bidar PS – Maheshwaram, Sikar-II – Khetri
  • New substations: Koppal-II, Bidar
  • 400 kV transmission line: Bikaner II – Bikaner-III
  • Post-September 2026 commissions: 765 kV Koppal-II PS – Narendra line, 400 kV Koppal-II PS – Gadag-II PS line, Gadag-II PS substation

Technological Developments

  • Deployed 220 kV mobile GIS (developed with OEM)
  • Indigenous development of silicon carbide MOSFET with MeitY (13,000 SiC power modules planned)
  • Deployed insulated aerial work platform
  • Developed indigenous 100 kg payload capacity drone for remote area construction
  • Upgraded National Transmission Asset Management Centre
  • Operationalized I3SOC (Security Operations Centre)

New Business Initiatives

Data Center:

  • 100% Indian-owned government infrastructure
  • Tier III certified, MeitY-empanelled cloud service provider
  • 1,000 racks, 14 MW capacity
  • Seven-layer security system
  • Expected commissioning: Within weeks from November 2026
  • Second data center planned in southern India (land secured)

Battery Energy Storage Systems (BESS):

  • Pursuing under Section 62 (RTM) route
  • Petitions filed with Northern and Western Region regulators
  • Clearances obtained from Northern and Western Regions

Funding and Financing

  • JBIC green loan: Japanese yen 80 billion
  • SBI term loan: ₹10,000 crore
  • UBI term loan: ₹5,000 crore
  • Bonds: ₹2,000 crore (additional offering expected)

Subsidiary and Other Business Performance

  • Telecom revenue: ₹283 crore
  • Consultancy revenue: Approximately ₹400 crore
  • SPV rationalization: 28 SPVs merged into 2 SPVs for better governance

ESG Commitments

  • RE target: Achieved 50% (exceeded last year)
  • Zero waste to landfill: >90% achieved
  • Net water positive: >50% achieved
  • Net zero target: On track
  • CRISIL ESG score: Improved from 58 to 66
  • NSE sustainability score: 70

Regulatory and Operational Challenges

  • Right-of-way issues being addressed through market-based compensation guidelines from Ministry of Power
  • Some states adopting new compensation models
  • Equipment supply challenges resolved through bulk procurement strategy
  • Transformer supplies now stable

Management Outlook

  • Strong growth potential due to electricity-intensive economic growth
  • Massive transmission project pipeline supporting long-term growth
  • HVDC project pipeline: 22 projects planned (127 GW capacity)
  • Expected HVDC project awards in FY28
  • Competition increasing but returns expected to remain encouraging
  • Commodity price risks managed through price variation clauses in contracts

Analyst Q&A Highlights

  • Confirmed no project delays or stalling despite ROW challenges
  • Khavda-Nagpur HVDC project on track for 4-year timeline
  • Transmission project timelines extended from 18-24 months to 24-30 months for new projects
  • Intrastate bidding activity increasing
  • Price variation formulas protect against commodity inflation