Brokerage firm Prabhudas Lilladher has kept its 'Buy' rating on Power Grid Corporation of India, with a target price of Rs 321. The positive outlook is driven by strong order inflows and increased capital spending plans. Investors should also note the company’s recent interim dividend of Rs 3 per share, which has a record date of November 6, 2026.
Brokerage firm Prabhudas Lilladher has reiterated its positive stance on Power Grid Corporation of India, maintaining a 'Buy' rating with a target price of Rs 321. This updated view follows the company’s recent financial results and an analyst meeting, which highlighted a robust pipeline for future transmission projects.
Strong Order Inflows and Capex
The company’s growth outlook is primarily supported by its expanding order book and increased capital spending. In the second quarter of the 2027 fiscal year, the company saw significant project inflows, notably driven by the high-voltage direct current project in Barmer. Management has also revised its capital expenditure guidance upward, now projecting spending in the range of Rs 370 billion to Rs 400 billion for the full fiscal year. This increase reflects the company's clear visibility for future operations as it continues to win bids for new transmission infrastructure.
Financial Performance and Dividends
Power Grid reported a consolidated net profit of Rs 3,866 crore for the second quarter of fiscal year 2027, marking an 8.4% increase compared to the same period last year. Alongside these results, the company announced an interim dividend of Rs 3 per share. Investors who wish to receive this dividend should note that the record date has been scheduled for November 6, 2026.
Risks and Market Context
While the outlook remains positive, investors should be aware of the specific challenges facing the power transmission sector. One key risk involves land acquisition, which can occasionally lead to uncertainty in project timelines. The company has adjusted its commissioning guidance to account for these potential delays. Additionally, profit margins may face some pressure due to rising operating expenses and regulatory deferrals.
For investors, the primary area to monitor is the actual execution of the large order book. Success depends on the company’s ability to manage costs, navigate land-related challenges effectively, and commission these projects within the planned timelines. The stock, which was trading around Rs 261.35 as of November 4, 2026, continues to be a central part of many infrastructure-focused portfolios due to its role in India's power transmission grid.