1. At a Glance
India Grid Trust (IndiGrid), India’s first listed power sector InvIT, is where stable dividends meet transmission lines. With a juicy 13.4% yield and a portfolio of 42 lines & 12 substations, it’s the passive-income darling of the stock market — just don’t ask it to grow like a startup.
2. Introduction with Hook
Imagine a toll booth that keeps charging trucks without needing to upgrade the road. That’s IndiGrid for you — India’s toll booth for electricity. Backed by giants like KKR & Sterlite Power, this InvIT (Infrastructure Investment Trust) is the mutual fund cousin that said, “I don’t chase growth, I chase cash.”
- 13.4% Dividend Yield — it’s not a stock, it’s a “monthly salary”.
- ₹13,000 Cr Market Cap — midcap InvIT that pays more than your FD.
3. Business Model (WTF Do They Even Do?)
Let’s break it down — this isn’t a company; it’s a trust.
- Owns power transmission SPVs
- Receives fixed, long-term cash flows via 35-year Transmission Service Agreements (TSAs)
- Distributes 90%+ Net Distributable Cash Flow (NDCF) to unitholders
- Backed by sponsors:
- KKR (global PE wizard)
- Sterlite Power (India infra biggie)
So it doesn’t “do” business — it collects rent on electrons.
4. Financials Overview
Profit & Loss (₹ Cr):
| FY | Sales | OPM % | Interest | Net Profit | EPS | Dividend % |
|---|---|---|---|---|---|---|
| 2022 | 2,222 | 91% | 1,050 | 343 | 4.98 | 241% |
| 2023 | 2,332 | 90% | 1,011 | 466 | 6.51 | 48% |
| 2024 | 2,864 | 85% | 1,308 | 296 | 3.64 | 95% |
| 2025 | 3,288 | 88% | 1,495 | 410 | 4.77 | 86% |
Observations
- Ultra-stable OPM >85% (Electricity doesn’t argue)
- Rising interest cost = heavy debt
- Net profit is wobbly but distributions are king
5. Valuation
| Metric | Value |
|---|---|
| Current Price | ₹156 |
| P/E | 37.7 |
| Book Value | ₹61.8 |
| P/B | 2.52x |
| Dividend Yield | 13.4% |
Fair Value Range (EduEstimate™):
Based on DCF of future distributions, power sector peers, and InvITs comps:
₹130 – ₹170 (Below ₹140 = passive-income steal, above ₹170 = overpaying for stability)
6. What’s Cooking – News, Triggers, Drama
- Next Result & Distribution: July 24, 2025 – Watch for dividend declaration.
- Credit Ratings: Reaffirmed by CRISIL, ICRA, Fitch – All good boys.
- Unit Holding Updates: Disclosed as per SEBI norms – retail still low.
- Infra Addition: 100 MW solar assets, expanding to renewables slowly.
Trigger Alert:
Any new SPV acquisition or sponsor infusion = instant buzz.
7. Balance Sheet
| Metric (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | 6,590 | 7,645 | 8,332 |
| Reserves | -1,633 | -2,355 | -3,174 |
| Borrowings | 14,505 | 19,304 | 20,097 |
| Fixed Assets | 17,841 | 22,710 | 22,028 |
Key Points
- Leverage heavy: Debt is used to fund asset purchases
- Negative reserves: Not alarming for InvITs — DPU > PAT
- Fixed assets = long-term income machines
8. Cash Flow – Sab Number Game Hai
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| CFO | 2,037 | 2,663 | 2,902 |
| CFI | -2,119 | -6,102 | -1,780 |
| CFF | -790 | 3,356 | -1,249 |
| Net Cash Flow | -872 | -83 | -127 |
Gyaan
- Strong CFO ensures distributions
- CFI = aggressive capex/acquisition
- CFF volatility = payout + debt juggling
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 8% | 7% | 8% |
| ROE | 7% | 6% | 7% |
| Cash Conversion | 65d | 102d | 78d |
| Debt/Equity | High (Not directly comparable due to Trust structure) |
Interpretation
- Return ratios are low — but that’s okay for a yield-focused InvIT
- 90%+ of income is passed to unitholders
- Not a compounding machine — it’s a cash cow
10. P&L Breakdown – Show Me the Money
| Quarter | Sales | OPM % | Net Profit | EPS |
|---|---|---|---|---|
| Jun ‘24 | 866 | 91% | ₹137 Cr | 1.71 |
| Sep ‘24 | 836 | 91% | ₹99 Cr | 1.22 |
| Dec ‘24 | 803 | 90% | ₹58 Cr | 0.66 |
| Mar ‘25 | 901 | 82% | ₹117 Cr | 1.36 |
- Highest OPM in the peer group
- Quarterly fluctuation = interest + depreciation shuffle
11. Peer Comparison
| Name | CMP | P/E | Div Yld | ROCE | ROE |
|---|---|---|---|---|---|
| IndiGrid Trust | ₹156 | 37.7 | 13.4% | 7.5% | 6.6% |
| Power Grid Corp | ₹294 | 17.6 | 3.8% | 12.9% | 17.3% |
| Powergrid Infra | ₹93 | 7.2 | 12.9% | 16.1% | 15.4% |
Takeaway
- IndiGrid = Yield King
- Power Grid = Growth + Stability
- Powergrid Infra = Cheap & aggressive
12. Miscellaneous – Shareholding, Promoters
- Promoter Holding: Just 1.2% (KKR’s backing doesn’t reflect in SEBI format)
- Retail & Mutual Fund Holding: Growing slowly
- Unit Holding Pattern: Disclosed every quarter
- Red Flag?: Promoter holding fell 22% in 3 years — but KKR still involved
13. EduInvesting Verdict™
If IndiGrid was a person, it would be your retired uncle in Goa — sipping tea, sending you money, and never attending Zoom meetings.
It’s not for adrenaline junkies or traders.
It is for:
- Passive income lovers
- Dividend yield chasers
- Retirement portfolio builders
But don’t expect growth fireworks — this is a trust fund baby with a steady allowance, not a hustling entrepreneur.
Metadata
– Written by EduInvesting Analyst | July 21, 2025
– Tags: InvIT, IndiGrid Trust, Infrastructure, Dividend Stocks, Power Transmission, Yield Investing
