Power Grid shares rally over 2% even as benchmark indices nosedive; here is why

Both benchmark indices, S&P BSE SENSEX and NSE's NIFTY50, were down around 2% in the afternoon trade.

However, there were some stocks that were bucking the trend. Power Grid Corporation of India was one of the outliers.

Shares of Power Grid rallied as much as 2.26% to ₹304.35 apiece on the NSE.

Why are Power Grid shares rallying?

Power Grid shares are rallying following the company’s investor presentation shared on Monday.

In its presentation, Power Grid announced further revision in FY26 capex and capitalisation guidance.

It said that the company's initial capex guidance for the fiscal year 2025-26 was ₹28,000 crore, which was later revised to ₹32,000 crore (on Feb 2, 2026). The company has further revised its guidance to ₹35,000 crore.

Power Grid said that it has achieved nearly 102% of the latest guidance as of March 22, 2026, at ₹35,540 crore.

Similarly, regarding capitalisation, initial guidance was ₹20,000 crore, which was later revised to ₹22,000 crore (on Feb 1, 2026) and further to ₹25,000 crore.

The company said that as of March 22, 2026, it has achieved nearly 91% of the latest guidance, ₹22,749 crore.

Power Grid said that execution proficiency and adaptability helped navigate project execution challenges.

Capitalisation guidance

Capitalisation guidance here refers to management’s estimate of how much of its ongoing projects will be completed and added to its asset base in a given period. In simple terms, capitalisation guidance means the expected value of projects that will start generating revenue.

Capitalisation guidance is essentially a forward-looking indicator of earnings growth, especially important for infra and utility companies.

For instance, if XYZ company says capitalisation guidance is ₹45,000 crore, it means projects worth ₹45,000 crore are expected to be completed and start contributing to revenue in that period.

What investors need to know

Raising capex and capitalisation guidance is generally seen as a positive, as it signals stronger growth plans and higher future earnings visibility, especially for companies like Power Grid Corporation of India where completed projects directly add to revenue. However, the outlook depends on execution and funding—higher debt or project delays could offset the benefits.

India's power sector: $2 trillion investment needed

Union Power Secretary Pankaj Agarwal recently said that India will require investment of about $2.2 trillion in the power sector over the next two decades.

India has set a target of 500 GW of renewable energy by 2030 and the addition of 97 GW of coal-based thermal power generation capacity by 2034-35.

The transition ahead will require unprecedented investment. India will require an investment of about $2.2 trillion over the next two decades, Agarwal said, addressing the Bharat Electricity Summit 2026.

India has made a lot of progress in terms of adding power generation capacity, including renewable resources, and distributing it, the official noted.

The next phase of growth for India's power sector will depend on the software side, regulatory frameworks, market design, pricing mechanisms, and institutional innovation.

Hence, India’s planned ~$2 trillion investment in the power sector, largely towards renewables, grid expansion, and modernisation, creates a major growth runway for Power Grid Corporation of India.

Analysts say the $2 trillion push is not just about generating power; it’s about moving power, and that is exactly where Power Grid sits. More grid investment means sustained growth, higher capex, and earnings visibility for the company.