Powerline communication (PLC) is one of the key technologies contributing to grid intelligentization and needs to be specially designed for individual converter-based generators and loads. In this paper, a novel power and signal composite modulation (PSCM) strategy is proposed for powerline data transmission in switched reluctance motor (SRM)-based distributed power grids (DPGs). In detail, the signal modulation is realized by tuning the turn-off angle of the SRM to produce voltage ripples on the power transmission line; whereas autoregressive power spectrum density (AR-PSD) method is innovatively utilized to demodulate useful data from the powerline. Hardware experimentation is conducted in this study, which verifies the effectiveness of the proposed PSCM method.