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    Tata Power Company Q1 FY27 earnings call

    TATAPOWER
    Power·28 Jul 2026
    Management Summary

    Tata Power reported a strong Q1 FY27 with an 11% increase in PAT to ₹1,401 crores and an 8% rise in EBITDA to ₹4,249 crores, marking its 27th consecutive quarter of growth. The renewable cluster and rooftop business were key drivers, showing significant revenue and profit increases. The company deployed ₹5,300 crores in capex during the quarter, targeting ₹25,000 crores for the full year, primarily in renewables and transmission. Challenges included payment delays in Odisha DISCOM and ongoing losses at Tata Projects, alongside industry-wide transmission curtailment.

    Highlights

    5

    • PAT increased by 11% to ₹1,401 crores, marking the 27th consecutive quarter of PAT and EBITDA growth.

    • EBITDA grew by 8% to ₹4,249 crores, demonstrating consistent operational performance.

    • Renewable cluster showed strong growth with revenue up 22%, EBITDA up 23%, and PAT up 37% in Q1 FY27.

    • Rooftop business revenue nearly doubled YoY, with plans for 60-70% growth this year and cumulative ₹30,000 crores by 2029.

    • Significant progress in pumped hydro projects, with the first unit expected to commission by calendar year 2029.

    Concerns

    4

    • Odisha DISCOM experienced muted growth in Q1 FY27 due to delayed government payments and acute heatwave-related non-disconnection directives.

    • Tata Projects continued to incur losses in Q1 FY27, though management expects a turnaround after closing legacy projects.

    • Industry-wide transmission curtailment of roughly 5% impacted RE projects in Q1 FY27, though expected to settle in future quarters.

    • Renewable energy auction volumes have been muted, with states now preferring customized bids over central agency auctions.

    Key financials

    Metrics

    3

    Periods

    2

    Headline

    2
    • PAT
      ₹1,401 Cr
      YoY+11%
    • EBITDA
      ₹4,249 Cr
      YoY+8%

    Q1 FY27

    1
    • Capex
      ₹5,300 Cr

    Segment breakdown

    Renewable Cluster
    22% Revenue Growth23% EBITDA Growth37% PAT Growth
    Rooftop Business
    100% Revenue Growth (YoY)58.0% Revenue CAGR (4 years)68% EBITDA CAGR (4 years)84% PAT CAGR (4 years)
    Generation Business
    11% Revenue CAGR10% EBITDA CAGR2% PAT CAGR
    Transmission Business
    45% Revenue CAGR (4 years)19% EBITDA CAGR (4 years)27% PAT CAGR (4 years)
    Mumbai Transmission
    7.0% Revenue CAGR11% EBITDA CAGR21% PAT CAGR
    List

    Order Book

    high confidence

    Inflow this qtr

    ₹ 1,091 crores

    Composition

    Mix6 project types
    • Mumbai Transmission Investment₹ 10,000 crores55.5%
    • Renewable Capacity Addition (FY27)2,500 MW13.9%
    • Shirwata Pumped Hydro PSP1,800 MW10.0%
    • Bhutan Khorlochhu Hydro Project600 MW3.3%
    • Dorjilung Hydro Project1,125 MW6.2%
    • Transmission Pipeline2,000 kilometer11.1%

    Share of order book by project type (derived from disclosed amounts)

    Pipeline

    other

    Robust pipeline of pumped hydro and hydro projects, as well as transmission projects.

    "The company has a huge pipeline of regulated and long-term projects in transmission, renewables, and hydro, ensuring consistent growth."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹5,300 crores this quarter · ₹25,000 crores (FY27) planned

    Debt

    3.4x EBITDA

    Guidance & targets

    9
    CategoryTargetPriority
    Capacity
    Renewable Capacity Addition
    2,500-2,700 MW
    		High
    Capacity
    Total Renewable Capacity
    9 GW
    		High
    Growth
    Rooftop Business Growth
    60-70%
    		High
    Revenue
    Cumulative Rooftop Revenue
    INR 30,000 crores
    		High
    Commissioning
    First Pumped Hydro Unit
    Commissioning
    		High
    Commissioning
    Bhutan Khorlochhu Project
    Operational
    		High
    Capex
    Total Capex
    INR 25,000 crores
    		High
    Capex
    Q2 Capex
    INR 6,000-6,500 crores
    		Medium
    Market Share
    Rooftop Market Share
    25%
    		High

    What to watch in Q2 FY27

    5

    Odisha DISCOM collection efficiency

    this quarter (Q2 FY27)
    CurrentImpacted by delayed government payments and non-disconnection directives in Q1 FY27
    TargetImprovement in collection efficiency

    Why it matters

    Crucial for the financial health and profitability of the distribution business in Odisha.

    The second is because of acute heat wave, the government asked that don't disconnect supply up to 15th of June and these payments are not made. That period is over and now we are collecting all the payments. So the collection efficiency will be improving in this quarter.

    Risks & concerns

    4
    RiskSeverity

    Payment delays from DISCOMs in Odisha

    Government payments delayed, especially from Panchayati Raj departments, and non-disconnection directives during heatwave impacted collections in Q1 FY27. Expected to recover in Q2 FY27. — Management acknowledged

    medium

    Losses in Tata Projects due to legacy projects

    Tata Projects is in the final stages of closing legacy projects that were losing money, with an expectation of improved financial performance after possibly one more quarter of impact. — Management acknowledged

    medium

    Transmission curtailment impacting RE projects

    Industry-wide curtailment of roughly 5% in Q1 FY27 due to transmission bottlenecks, but expected to settle as new transmission lines are commissioned. — Management acknowledged

    medium

    Muted renewable energy auction volumes

    Central agency auctions have been muted, with states now preferring customized bids, leading to a shift in the nature of new project opportunities. — Management acknowledged

    low

    Q&A highlights

    8

    “Odisha, we had 3 issues in Odisha. One was that there were some government payments which got delayed... The second is because of acute heat wave, the government asked that don't disconnect supply up to 15th of June... On the Tata Projects, we are in the final stages of closing some of the legacy projects.”

    Addresses specific underperforming segments and provides reasons and expected timelines for improvement.

    asked by Mohit Kumar

    3 min read7 chapters

    Detailed Narrative

    01

    Strong Financial Performance and Consistent Growth

    Tata Power reported its 27th consecutive quarter of increased PAT and EBITDA. For Q1 FY27, PAT grew by 11% to ₹1,401 crores, and EBITDA increased by 8% to ₹4,249 crores. The company highlighted its consistent performance over time⏳, with a CAGR of 8% for revenue, 12% for EBITDA, and 7% for PAT across previous periods, demonstrating a strong foundation from existing operations and new businesses.

    02

    Robust Power Demand Growth

    The power sector experienced strong demand growth in Q1 FY27, with an 8.5% increase overall. May saw an 11% increase, and June was 9.8%. This trend continued into July, with demand consistently in the range of 260-270 gigawatts, driven by delayed and inadequate rains leading to higher cooling requirements and a pickup in industrial growth.

    03

    Renewables and Rooftop Business Outperformance

    The renewable cluster performed exceptionally well in Q1 FY27, with revenue up 22%, EBITDA up 23%, and PAT up 37%. The rooftop business saw nearly 100% revenue growth year-on-year and boasts a 4-year CAGR of 58% for revenue, 68% for EBITDA, and 84% for PAT. The company plans to grow its rooftop business by 60-70% this year and expects to achieve cumulative revenue of ₹30,000 crores by 2029, driven by market leadership and integrated solutions including battery storage.

    04

    Significant Capacity Additions and Project Pipeline

    Tata Power aims to add 2,500-2,700 MW of renewable capacity in FY27, targeting over 9 GW by year-end. 200 MW was commissioned in Q1, with another 500 MW expected in the coming weeks. The company has a substantial pipeline in pumped hydro (1,800 MW Shirwata PSP, 1,125 MW Dorjilung) and hydro (600 MW Bhutan Khorlochhu project with signed PPA), with the first pumped hydro unit expected to commission by early 2029 and the Bhutan project by 2030. Mumbai transmission also has a ₹10,000 crore investment pipeline over the next 5 years.

    05

    Capital Expenditure and Debt Profile

    The company spent ₹5,300 crores on capital expenditure in Q1 FY27 and plans for a total of ₹25,000 crores for the full year. Approximately 50% of this capex is allocated to renewable projects, with the remainder for FGD, transmission, and distribution projects. The net debt to underlying EBITDA stood at 3.41, and net debt to equity at 1.25, which management stated is within their guardrails for investment.

    06

    Challenges in Odisha DISCOM and Tata Projects

    Odisha DISCOM experienced muted growth in Q1 FY27 due to delayed government payments from Panchayati Raj departments and a directive to not disconnect supply during an acute heatwave. Management expects these collection issues to resolve in Q2 FY27. Tata Projects continued to incur losses, primarily from closing out legacy projects, but a turnaround is anticipated after possibly one more quarter of impact, supported by a strong pipeline of new orders.

    07

    Solar Manufacturing and Market Dynamics

    The cell and module plants are operating at full capacity, with module production exceeding 1,000 MW in Q1 FY27. The company noted that renewable energy auction volumes have been muted, with a shift towards state-specific and customized bids rather than central agency auctions. Management clarified that ALMM-II is not rolled back for rooftop and utility-scale projects, with only a small proviso for limited open access arrangements.

    This is an AI-generated summary of a publicly available earnings call transcript.