PGCIL Accelerates Grid Expansion with 51% Capex Surge in Q1

Power Grid Corporation of India Ltd. (PGCIL) reported a 51% year-on-year increase in capital expenditure (capex) for Q1 FY26, reaching ₹6,981 crore, up from ₹4,615 crore in Q1 FY25.

According to CMD R.K. Tyagi, the company has set a capex target of ₹28,000 crore for FY26, a 7% rise over the ₹26,255 crore spent in FY25—its highest annual capex since FY18. Spending is projected to rise further to ₹35,000 crore in FY27 and ₹45,000 crore in FY28, reflecting a robust project pipeline and accelerated execution plans.

Despite the strong capex, capitalization in Q1 FY26 declined by 22% to ₹1,800 crore due to the incomplete commissioning of minor components in major projects, including Khavda Pooling Stations 2 and 3 (KPS2 and KPS3).

However, PGCIL expects capitalization to ramp up in H2 FY26, targeting ₹22,000 crore in commissioning for the full year, of which ₹15,000 crore is scheduled between October 2025 and March 2026. The FY27 capitalization target stands at ₹25,000 crore.

Between April and July FY26, cumulative capitalization reached ₹2,806 crore, up from ₹2,429 crore in the same period last year. Key projects completed in Q1 and Q2 include 765/400kV substations in Gujarat and Rajasthan, along with new high-voltage transmission lines across Gujarat.

News by Rahul Yelligetti.