ICICI Securities SHOCKS Market: Power Grid Corp BUY Call & Rs 360 Target! Massive Infrastructure Play Revealed!

ICICI Securities has released a research report on Power Grid Corporation of India Limited, maintaining a BUY recommendation for the stock. The report highlights Power Grid's leading role in India's power transmission infrastructure development, noting its market share exceeds 50% in transmission bids over the last two years. The company has been successful in securing projects worth over INR 1 trillion in FY25, with an estimated INR 920 billion won through bidding. This has resulted in a robust work in hand, standing at INR 1.52 trillion as of September 2025, despite a subdued bidding environment in the first half of FY26, which is expected to improve in the latter half. Power Grid has also increased its execution efforts, with capital expenditure (capex) of INR 263 billion in FY25 and INR 154 billion in H1FY26. Future capex is guided at INR 280 billion for FY26, INR 350 billion for FY27, and INR 450 billion for FY28. However, project commissioning has been slower than anticipated, at INR 46 billion year-to-date FY26, against a full-year guidance of INR 200 billion for FY26. The transmission order pipeline is projected to remain strong over the next three years, with Power Grid expected to maintain its leading position in new bids. The firm has slightly revised its estimates to account for higher expenses booked, mainly for smart meters and changes in depreciation and interest cost for some old cost-plus assets. They maintain a BUY rating with a revised target price of INR 360 (previously INR 365), valuing the stock at 16 times FY28E EPS.

**Impact**: This news provides a positive outlook for Power Grid Corporation of India, reinforcing investor confidence in its role within India's critical infrastructure development. The BUY recommendation and target price suggest potential for stock appreciation, making it a significant signal for investors interested in the energy and infrastructure sectors. **Rating**: 8/10

**Difficult Terms**: * **Transmission infrastructure**: The network of wires, towers, and substations used to carry electricity from power generation sources to consumers. * **Capex (Capital Expenditure)**: Money spent by a company to acquire, maintain, or improve its physical assets like buildings, machinery, or infrastructure. * **Market share**: The percentage of total sales in an industry generated by a particular company. * **Bidding**: The process where companies submit prices to win contracts for projects. * **Order book**: The total value of contracts a company has secured but not yet completed. * **FY (Fiscal Year)**: A 12-month period that companies use for accounting purposes, often different from the calendar year. * **H1/H2**: First half and second half of a fiscal year. * **YTD (Year-to-Date)**: The period from the beginning of the current year up to the present date. * **Cost-plus assets**: Assets for which the price is determined by adding a fixed percentage of profit to the cost of production. * **Depreciation**: The decrease in the value of an asset over time due to wear and tear or obsolescence. * **EPS (Earnings Per Share)**: A company's net profit divided by the number of its outstanding common shares, used to gauge profitability.