1. At a Glance
India’s first listed power sector InvIT, IndiGrid Trust, is pulling the classic infrastructure flex—boring name, juicy dividends. With a mouthwatering 13.3% dividend yield, this power transmission InvIT is distributing more cash than a wedding baraat. But behind the payout parade are chunky borrowings, slow growth, and SEBI’s raised eyebrows.
2. Introduction with Hook
Imagine if your landlord gave you 13% returns, showed up twice a year with a bag of cash, and still looked stressed because he borrowed 3x the property value. Welcome to IndiGrid Trust—part asset-light, part debt-heavy, all electricity.
Backed by KKR and Sterlite Power, IndiGrid is trying to light up your portfolio like a Diwali grid failure. But does this InvIT have enough current to shock or is it just a transformer with commitment issues?
Two big jolts:
- 13.3% yield — yes, you read that right.
- ₹3,288 Cr revenue TTM — but growth is crawling at 7% YoY.
3. Business Model (WTF Do They Even Do?)
IndiGrid is essentially a landlord for India’s power grid. Here’s the roast:
“They lease wires. Fancy wires. Long wires. With transformers. And then brag about it on concalls like it’s the next Tesla.”
They acquire Special Purpose Vehicles (SPVs)—think of them as startup projects with zero personality—from sponsors or third parties and collect rent (TSA fees) for 35 years. Add solar assets and battery storage to this, and you have an InvIT that’s flirting with being an energy conglomerate without wanting the baggage of equity dilution.
4. Financials Overview
| Metric | FY25 | FY24 | YoY Growth |
|---|---|---|---|
| Revenue | ₹3,288 Cr | ₹2,864 Cr | 14.8% |
| EBITDA | ₹2,891 Cr | ₹2,439 Cr | 18.5% |
| Net Profit | ₹410 Cr | ₹296 Cr | 38.5% |
| Interest Cost | ₹1,495 Cr | ₹1,308 Cr | 14.3% |
Commentary:
- OPM’s still baller at ~86%, but that’s expected when your biggest cost is boredom.
- Interest is eating away nearly half the operating profits.
- Net profit growth? Good. But after adjusting for fairytale depreciation and “one-off” income, it’s more like Cinderella’s pumpkin.
5. Valuation
Let’s break the fuse box down:
- P/E: 39x TTM. Bruh.
- EV/EBITDA: ~9x, semi-reasonable if you ignore the debt Everest.
Fair Value Range: ₹125–₹145
“If you’re paying 39x earnings for a utility asset, you probably buy popcorn at PVR without checking the price.”
6. What’s Cooking – News, Triggers, Drama
More plot twists than a K-drama marathon:
- ₹3,000 Cr NCDs issued in multiple series this year. Bond rating: AAA. Mood: Desperate.
- India’s first utility-scale Battery Energy Storage System (BESS) commissioned. Now with 180 MW storage — basically the UPS of India’s grid.
- SEBI slapped a warning in March 2025. Likely for something paperwork-y but still — red flags are red flags.
- Aggressive M&A: Acquiring SPVs like they’re on a shopping spree with KKR’s credit card.
7. Balance Sheet
| Mar 2025 (₹ Cr) | Value |
|---|---|
| Equity Capital | 8,332 |
| Reserves | -3,174 |
| Borrowings | 20,097 |
| Fixed Assets | 22,028 |
| Investments | 1,900 |
| Other Assets | 2,441 |
Key Notes:
- Reserves in negative territory? That’s some reverse Robin Hood stuff.
- Borrowings > Fixed Assets. Classic infra tale: Build, borrow, beg for yield.
“Debt: Not Titanic-level, but the ship is taking on water.”
8. Cash Flow – Sab Number Game Hai
| FY (₹ Cr) | Ops | Investing | Financing | Net |
|---|---|---|---|---|
| FY23 | 2,037 | -2,119 | -790 | -872 |
| FY24 | 2,663 | -6,102 | 3,356 | -83 |
| FY25 | 2,902 | -1,780 | -1,249 | -127 |
Interpretation:
- Cash from ops is stable and sweet.
- Investing cash flow looks like a Black Friday sale at a solar mall.
- Net cash flow: Bleeds red. Every. Single. Year.
“Cash flow looks like your Swiggy delivery guy — always on the move, perpetually broke.”
9. Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 6.6% |
| ROCE | 7.5% |
| P/E | 39x |
| D/E | ~2.4x |
| PAT Margin | ~10.4% |
Roast:
- ROE = Yawn.
- D/E = Spicy. Fire department on standby.
- PAT Margin? Enough to exist. Not enough to thrive.
10. P&L Breakdown – Show Me the Money
| FY | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹2,332 Cr | ₹2,101 Cr | ₹466 Cr |
| FY24 | ₹2,864 Cr | ₹2,439 Cr | ₹296 Cr |
| FY25 | ₹3,288 Cr | ₹2,891 Cr | ₹410 Cr |
Note:
“PAT fell in FY24 even when revenue was up—classic ‘we grew too fast and tripped on our own shoelaces’ moment.”
11. Peer Comparison
| Name | CMP (₹) | P/E | MCap (Cr) | ROE | Div Yld |
|---|---|---|---|---|---|
| PowerGrid | 299 | 18x | ₹2.78 L Cr | 17.3% | 3.8% |
| IndiGrid | 157 | 39x | ₹13.1 K Cr | 6.6% | 13.3% |
| PowerGrid Infra | 94 | 7.3x | ₹8.5 K Cr | 15.4% | 12.8% |
“IndiGrid is like the fancy guy at the function who shows up with a Rolex but took an Uber Pool.”
12. Miscellaneous – Shareholding, Promoters
- Promoter Holding: Just 1.2% — even the promoter’s like “you take it, bro.”
- Public Holding: Fully floated InvIT. Retail investors keep it alive for yield.
- Anchor/Strategic: KKR remains the big daddy behind the scenes.
No M&A scandal (yet), but SEBI’s watchful gaze suggests a little internal suspense drama might be brewing.
13. EduInvesting Verdict™
IndiGrid is a steady power transmission InvIT that does two things well:
- Pays investors like a fixed deposit on steroids.
- Borrows like it’s a startup pitching to Shark Tank.
If you want capital appreciation, you’re in the wrong lane. But if high yield, regulated assets, and long-term visibility are your jam, this one’s a pit stop worth checking.
“A great place to park your cash. Just don’t expect fireworks unless KKR starts throwing surprise parties.”
Written by EduInvesting Team | 25 July 2025
Tags: IndiGrid Trust, InvIT, Infrastructure, Dividend Yield, EduInvesting Premium
