Power Grid Corporation of India (PGCIL) reported a 51 percent year-on-year surge in capital expenditure (capex) for Q1/FY26, reaching Rs 6,981 crore compared to Rs 4,615 crore in Q1/FY25.

CMD RK Tyagi stated the company targets Rs 28,000 crore capex for FY26, up seven percent from Rs 26,255 crore in FY25, which was its highest annual spend since FY18. Capex is expected to rise further to Rs 35,000 crore in FY27 and Rs 45,000 crore in FY28. Capitalization, however, fell 22 percent in Q1 /FY26 to Rs 1,800 crore due to incomplete minor elements in projects like Khavda Pooling Station-2 (KPS2) and KPS3.

Capitalization is expected to accelerate in H2 FY26, with Rs 22,000 crore commissioning for the year, Rs 15,000 crore of which is due between October 2025 and March 2026. The FY27 capitalisation target stands at Rs 25,000 crore.

Between April–July FY26, capitalisation reached Rs 2,806 crore, up from Rs 2,429 crore in the same period FY25. Key Q1–Q2 project completions include major 765/400kV substations in Gujarat and Rajasthan, and new high-voltage transmission lines across Gujarat.