Power Grid Corporation of India Limited (POWERGRID.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+62.0%

₹427.97

vs ₹264.10 price

Levered DCF

₹293.07

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

1.12

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	17.29×	17.33×	16.74×	10.21×	8.99×	9.37×	7.53×	10.19×
P/B	2.74×	2.9×	2.99×	1.9×	1.98×	2.15×	1.29×	1.73×
P/S	5.89×	5.88×	5.68×	3.45×	3.63×	3.79×	2.21×	2.92×
EV / EBITDA	10.68×	9.93×	9.56×	7.07×	7.66×	8.17×	6.74×	7.98×
Gross margin	53.4%	97.7%	98.0%	98.2%	98.0%	98.1%	98.0%	97.6%
Operating margin	53.4%	91.5%	92.2%	92.3%	92.2%	92.3%	92.3%	92.0%
Net margin	40.0%	33.9%	34.0%	33.8%	40.4%	30.4%	29.3%	28.6%
Current ratio	0.62×	0.73×	0.79×	0.86×	0.63×	0.83×	0.44×	0.42×
Debt / equity	1.47×	1.45×	1.46×	1.59×	1.77×	2.1×	2.29×	2.48×
Interest coverage	2.95×	5.08×	4.86×	4.97×	4.92×	4.49×	3.7×	3.79×
Dividend yield	3.0%	3.6%	4.3%	5.4%	7.1%	4.5%	6.4%	4.4%
Payout ratio	44.8%	62.9%	72.0%	55.4%	64.3%	56.7%	48.3%	45.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	18.6%	16.8%	17.9%	18.6%	22.1%	17.2%	17.1%	17.0%
Return on invested capital	9.3%	13.6%	15.1%	15.5%	13.9%	11.9%	11.6%	14.6%
Return on assets	6.3%	5.8%	6.2%	6.2%	6.7%	4.7%	4.3%	4.1%
Free cash flow yield	-1.9%	4.5%	9.9%	19.7%	12.0%	13.3%	23.6%	0.9%
Earnings yield	6.8%	5.8%	6.0%	9.8%	11.1%	8.0%	13.3%	9.8%
Enterprise value	₹4.1T	₹3.9T	₹3.8T	₹2.8T	₹2.8T	₹2.9T	₹2.3T	₹2.5T
Net debt / EBITDA	3.59×	3.14×	3.09×	3.16×	3.57×	3.97×	4.26×	4.65×
Cash conversion cycle (days)	112	482	538	576	612	667	680	497