Tata Power delivered a strong Q3 FY26, with EBITDA growing 12% YoY to Rs. 3,913 crores and PAT marginally increasing to Rs. 1,194 crores despite the Mundra plant being non-operational. Growth was driven by robust performance in solar manufacturing, rooftop solar, and Odisha Discoms. The company is progressing on Mundra resolution and has a significant renewable capacity pipeline, though execution faces some grid connectivity challenges.
vs Q4 FY26
| Metric | Value | YoY |
|---|---|---|
| EBITDA (Q3) | ₹3.9K Cr | +12.0% YoY |
| PAT (Q3) | ₹1.2K Cr | — |
| EBITDA (9-months) | ₹12K Cr | +12.0% YoY |
| PAT (9-months) | ₹3.7K Cr | +7.0% YoY |
Segment Breakdown
Total Value
5,500 MW
as of 2025-12-31
Execution
within the next two years
Composition
Pipeline
otherRemaining capacity for Q4 FY26
"The company has a significant pipeline of 5.5 GW to execute over the next two years, with FY27 and FY28 additions expected to be 100% own projects."
| Category | Headline | |
|---|---|---|
Capex | ₹15,000 crores | |
Debt | 3.4x EBITDA |
| Category | Target | Priority |
|---|---|---|
| Capacity | Peak Power Demand→270-280 GW | High |
| Capacity | Total Capacity Addition→2.7 GW | High |
| Capacity | Total Capacity Addition (Upper Range)→3 GW | Medium |
| Capacity | Own Capacity Addition→2.5 GW | High |
| Capacity | Own Capacity Addition→2.5 GW | High |
| Capacity | Solar vs Wind Split (FY27 Own Capacity)→50-50 | High |
| Profitability | EPC PAT Margin→5-6% | High |
| Profitability | Consolidated PAT Margin→8% | High |
| Debt | Net Debt to Underlying EBITDA→3.4 | High |
| Debt | Net Debt to Equity→1.2 | High |
| Regulatory | Distribution PPP Announcements→6-9 months | Medium |
| New Business | Nuclear Plant Project Start→24 months | Low |
| # | Metric | |
|---|---|---|
| 01 | Mundra Plant Operational Status | |
| 02 | Distribution PPP Announcements | |
| 03 | Renewable Capacity Commissioning (Q4 FY26) | |
| 04 | Maithon FGD Regulatory Returns Impact | |
| 05 | Wafer and Ingot Plan Decision |
| Severity | Risk |
|---|---|
high | Mundra Plant Non-operation The Mundra plant was non-operational for the quarter, leading to a substantial hit to PAT and booking ~Rs. 800 crores in losses for the 9-month period. Management is actively working on resolution with Gujarat and other states. Management |
medium | Renewable Project Connectivity Delays Renewable projects are facing delays due to connectivity issues and the slow pace of new evacuation line setup, which could impact capacity addition timelines. Management is timing project completion with transmission availability to avoid stranded assets. Management |
low | Regulatory True-up Volatility The Delhi Discom saw a one-off regulatory true-up of Rs. 460 crores (EBITDA) for 2022-23, which, while positive this quarter, highlights the potential for volatility from such adjustments in future periods. Analyst |
Tata Power reported a strong Q3 FY26, with EBITDA increasing nearly 12% YoY to Rs. 3,913 crores and PAT marginally rising to Rs. 1,194 crores, despite the Mundra plant being non-operational. The growth was significantly bolstered by new businesses, including solar cell and module manufacturing, which saw Q3 PAT jump to Rs. 251 crores from Rs. 112 crores YoY, and rooftop solar, which executed 372 MW in Q3 and reported Q3 PAT of Rs. 111 crores, up from Rs. 60 crores. For the nine-month period, EBITDA grew 12% YoY to Rs. 11,874 crores, and PAT increased 7% to Rs. 3,702 crores.
The company is close to finalizing the arrangement for its Mundra plant with Gujarat, with only one point remaining to be resolved, and management anticipates closing this in 2-3 weeks. Operations are expected to resume by the end of the month. The plant's non-operation during the quarter resulted in a substantial hit to PAT, with approximately Rs. 800 crores in losses booked at the PAT level for the nine-month period due to the plant being shut for six months and not receiving capacity charges.
Tata Power has a substantial renewable capacity pipeline of nearly 5.5 GW to be executed over the next two years. For FY26, the company expects to commission a total of 2.7 GW (including 500 MW in Q4), having already commissioned 2.2 GW. Looking ahead, the company targets 2.5 GW of 100% own capacity additions for FY27 and FY28, with a balanced 50-50 solar-wind split. Execution is being carefully timed with the availability of transmission lines to avoid stranded assets, as connectivity issues have caused delays for some projects.
The Odisha Discoms continued their strong performance, with Q3 PAT increasing to Rs. 226 crores from Rs. 86 crores YoY, and generating approximately Rs. 800 crores in cash for the quarter, driven by improved collection and billing efficiencies. Additionally, the Delhi Discom benefited from a one-off📎 regulatory true-up for 2022-23, contributing Rs. 460 crores to Q3 EBITDA. This regulatory impact at TPDDL for the nine-month period was Rs. 344 crores.
Management anticipates significant opportunities in the distribution sector, particularly through public-private partnerships (PPPs) in states with high financial losses, with announcements expected in the next 6-9 months following potential Electricity Act amendments. The company is also in continuous discussions with government bodies, including the Department of Atomic Energy and NPCIL, regarding nuclear power, especially small modular reactors, with projects potentially commencing in 24 months. These initiatives are expected to bring more clarity on technology transfer and fuel sourcing.
Tata Power maintains a conservative financial profile with a net debt to underlying EBITDA ratio of 3.4 and a net debt to equity ratio of 1.2. Despite annual CAPEX plans ranging from Rs. 15,000-25,000 crores, management is committed to maintaining these healthy leverage ratios. The company also expects its EPC PAT margin to be consistently between 5-6% every quarter, with a consolidated PAT margin of approximately 8%, and anticipates that solar cell and module manufacturing margins will continue to improve.