Power & Instrumentation (Gujarat) Ltd enters 400kV segment with new transformer order at Khavda Project

How is Power & Instrumentation (Gujarat) Ltd expanding its capabilities in India’s transmission sector?

Power & Instrumentation (Gujarat) Limited, a company with decades of experience in electrical contracting and EPC services, has made a strategic move into India‘s Extra High Voltage (EHV) segment. The development comes on the back of a new work order valued at ₹80.24 lakh from Godrej & Boyce Manufacturing Company Limited. The scope of the contract includes the erection of 350 MVA power transformers, oil filtration, pre-erection testing, and oil sample testing at the 400kV GIS PSS-2 substation under the GIPCL Khavda Project in Gujarat.

This marks the company’s first project in the 400 kV segment, a significant step up from its previous experience with installations up to 66 kV. The Khavda assignment signals Power & Instrumentation (Gujarat) Limited’s readiness to handle high-voltage installations critical to India’s evolving power infrastructure. With India targeting a major build-out of transmission lines to support its renewable energy ambitions, the 400kV space has emerged as a priority area for both public and private sector investment.

Why is entry into the Extra High Voltage (EHV) space significant for PIGL?

The company’s entry into the EHV domain positions it alongside a niche set of players in India capable of executing projects at or above 400 kV. These voltage levels are typically used for long-distance bulk power transmission and are essential for integrating large-scale renewable energy installations, especially solar and wind farms located in remote areas like Khavda, Gujarat.

PIGL‘s advancement into this segment is not only a technical milestone but also a strategic realignment to participate more directly in large-scale grid modernisation projects. This move comes at a time when the Indian government, through entities like Power Grid Corporation of India and state transmission utilities, is undertaking substantial investments in expanding the national grid to accommodate 500 GW of non-fossil fuel capacity by 2030. The ability to deliver in the EHV space offers companies like PIGL access to higher-value contracts and broader partnerships.

What does the Khavda Project reveal about India’s future energy landscape?

The 400kV GIS PSS-2 substation at the Khavda site is part of a broader infrastructure initiative tied to the Khavda Renewable Energy Park, expected to be among the largest renewable installations globally. Located in the arid Kutch region of Gujarat, the project is a central component of India’s national energy strategy aimed at reducing carbon emissions and increasing renewable capacity.

By participating in this project, Power & Instrumentation (Gujarat) Ltd becomes an active player in a development zone earmarked for massive solar and wind energy build-outs. As the Khavda area scales to deliver tens of gigawatts of clean energy, transmission infrastructure such as 400kV substations will play a pivotal role in integrating that power into the national grid. PIGL’s involvement in such a high-profile initiative may also improve its credentials for future tenders in similar mega-scale renewable projects.

How does this move align with PIGL’s historical evolution and service offerings?

Founded in 1975, Power & Instrumentation (Gujarat) Ltd has developed a strong portfolio in the electrical EPC space. The company’s capabilities extend from designing and installing energy-efficient systems to executing complete electrical infrastructure projects. Historically, PIGL has focused on projects up to 66kV, covering sectors such as airports, rural electrification, and urban distribution networks.

Notably, the company has electrified over 100,000 below-poverty-line (BPL) households, laid more than 20,000 kilometres of HT and LT lines, and completed more than 35 airport projects. Its offerings span substations, power distribution systems, UPS setups, fire detection systems, and even ELV (extra low voltage) works.

The transition to Extra High Voltage work reflects both a vertical and qualitative leap in the company’s project profile. Such a move indicates PIGL’s intent to reposition itself from mid-range electrical works to more sophisticated, high-value projects that demand specialised technical capabilities and risk management processes.

What do PIGL’s latest financials and stock performance suggest?

As of April 15, 2025, PIGL shares were trading at ₹145.40, reflecting a 2.01% daily decline. The stock has seen a sharp 60.45% drop over the past three months, though it remains up 117.75% on a year-on-year basis. The volatility points to fluctuating investor confidence, possibly influenced by margin pressures or project execution cycles in the EPC space.

From a financial reporting standpoint, Power & Instrumentation (Gujarat) Ltd posted a consolidated net profit of ₹2.88 crore for the quarter ended December 2024, down from ₹3.89 crore in the preceding quarter. Revenue for the same quarter stood at ₹34.14 crore, a sequential drop from ₹55.75 crore. While these figures reflect a contraction, they must be viewed in the context of potential future earnings from high-value EHV contracts.

The company’s current valuation includes a Price-to-Earnings (P/E) ratio of 23.06 and a Price-to-Book (P/B) ratio of 2.73, indicating moderate pricing in the context of peers in the power EPC segment. With a market capitalisation of ₹266.44 crore, PIGL remains a small-cap player, offering room for growth as it diversifies into higher-margin projects.

Given these metrics, market sentiment leans toward cautious optimism. Analysts monitoring the company’s entry into higher-voltage domains may view this development as a forward-looking growth catalyst, though its recent financial softness warrants a ‘Hold’ strategy in the near term. Investors may want to await clearer execution trends in upcoming quarters before re-evaluating exposure.

What does the Managing Director’s statement reveal about future strategy?

In remarks included in the company’s press release, Managing Director Padmaraj Padmnabhan Pillai described the EHV entry as a “defining milestone” that validates years of investment in specialised skills and stringent safety standards. His statement highlighted the company’s intent to scale further in the segment, leveraging its new capabilities to pursue upcoming EHV tenders across India.

This outlook suggests that PIGL’s strategy may include forming joint ventures or seeking pre-qualification in public-sector EHV projects. Given India’s energy transition trajectory and government-backed grid strengthening initiatives, the market for such projects is poised to expand steadily. Industry watchers will be observing whether Power & Instrumentation (Gujarat) Limited can translate its Khavda milestone into a recurring stream of high-voltage project wins.

Can PIGL sustain momentum in a rapidly evolving energy infrastructure market?

As India races to strengthen its transmission backbone to support renewable energy, digitalisation, and grid resiliency, companies like PIGL that demonstrate technical agility will be well positioned. The company’s longstanding presence, combined with recent strategic diversification into higher voltage domains, suggests it is aligning with the future demands of the sector.

Sustaining this momentum will depend on a number of factors, including continued operational excellence, regulatory compliance under SEBI and CEA norms, timely project delivery, and retention of skilled personnel. PIGL’s ability to integrate into larger energy ecosystem initiatives—such as grid digitalisation and renewable energy storage integration—could further elevate its market stature.

For now, the Khavda contract stands as a pivotal benchmark in the company’s evolution, offering both a proof of concept and a forward path into India’s high-voltage future. Investors may watch closely as the company builds its track record in this high-stakes domain.