IndiGrid Powers Ahead: Strong Q2 Growth Driven by Strategic Partnerships and Battery Storage Expansion

India’s first and largest listed power sector infrastructure investment trust, IndiGrid, reported robust growth for the quarter and half-year ending September 30, 2024. Year-over-year, consolidated revenue for Q2 FY25 rose by 16% to ₹8,060 million, while EBITDA increased by 31.3% to ₹7,332 million. Net Distributable Cash Flow (NDCF) also showed a 3.6% year-on-year rise, reaching ₹3,197 million.

IndiGrid’s board approved a Distribution Per Unit (DPU) of ₹3.75 for Q2 FY25. The record date for this distribution is October 30, 2024, with the payment breakdown as follows: ₹3.61763 per unit as interest, ₹0.11357 as dividend, and ₹0.01880 as other income, per section 115UA of the Income Tax Act.

Strategic Partnerships and BESS Expansion

This quarter, IndiGrid entered a major partnership with British International Investment (BII), the UK’s development finance institution, the Norwegian Climate Investment Fund managed by Norfund, and Techno Electric and Engineering Company Limited. The collaboration aims to advance three of IndiGrid’s greenfield Inter State Transmission System (ISTS) projects.

Additionally, IndiGrid was awarded the position of L1 bidder for a 250 MW / 500 MWh Battery Energy Storage System (BESS) project through a reverse auction by NTPC Vidyut Vyapar Nigam (NVVN), as part of a larger 500 MW / 1,000 MWh project supported by the Viability Gap Funding scheme. This new project will bring IndiGrid’s under-construction BESS portfolio to a capacity of 450 MW / 900 MWh.

Investment and Capital Raise

IndiGrid attracted multiple high-profile investors this quarter through an Offer-for-Sale (OFS) by its sponsor KKR and a preferential issue. Key investors, including Alberta Investment Management Corporation (AIMCo), HDFC Life, L&T, HSBC Global Asset Management, SBI Life Insurance, and Aditya Birla Mutual Fund, participated, adding significant capital and trust to IndiGrid’s growth. The preferential issue raised ₹695 crores.

IndiGrid CEO and Whole-Time Director, Harsh Shah, remarked, “This quarter showcased IndiGrid’s growth potential. Our partnerships with reputed Development Financial Institutions and marquee investors for our greenfield ISTS projects validate our strategy for sustainable expansion across both brownfield and greenfield opportunities.”

Financial Highlights for Q2 FY25 (₹ million):

With these results, IndiGrid continues to solidify its role in India’s power sector, leveraging growth strategies to meet the nation’s infrastructure needs.