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    Tata Power Co.

    TATAPOWER
    Power·15 May 2026
    Management Summary

    Tata Power delivered a strong financial and operational performance in FY26, with record PAT and significant EBITDA growth across all segments. The company highlighted robust contributions from solar manufacturing and Odisha DISCOMs, alongside a substantial renewable project pipeline. While FY26 capex was impacted by project delays and Tata Projects faced legacy losses, management expressed confidence in resolving these issues and achieving ambitious growth targets for FY27, including a higher capex plan and progress in nuclear power.

    Highlights

    5

    • Full-year PAT exceeded INR5,000 crores, marking a strong financial performance.

    • FY26 EBITDA grew by 11% to INR16,090 crores, driven by strong performance across all existing businesses.

    • Q4 FY26 PAT increased 8% to INR1,416 crores, and EBITDA jumped 10% to INR4,216 crores.

    • The solar cell and module manufacturing plant delivered a PAT of INR857 crores, more than double the previous year.

    • Odisha DISCOMs' PAT significantly improved to INR809 crores in FY26 from INR439 crores in the prior year.

    Concerns

    3

    • FY26 capex of INR13,000 crores was significantly below the guidance of INR22,000 crores due to project delays (Right of Way, transmission infrastructure).

    • Tata Projects continued to incur losses in FY26 due to legacy projects, though these are expected to resolve in FY27.

    • Curtailment issues persist in some renewable projects, though cost reimbursement mechanisms are in place for GNA-backed projects.

    Key financials

    Metrics

    6

    Periods

    2

    Q4 FY26

    2
    • PAT
      ₹1,416 Cr
      YoY+8.4%
    • EBITDA
      ₹4,216 Cr
      YoY+10.1%

    FY26

    4
    • PAT
      ₹5,000 Cr
    • EBITDA
      ₹16,090 Cr
      YoY+11%
    • Solar Mfg PAT
      ₹857 Cr
      YoY+100%
    • Odisha DISCOM PAT
      ₹809 Cr
      YoY+84.3%

    Order Book

    high confidence

    Total Value

    5 gigawatts

    as of 2026-03-31

    quantified

    Execution

    50% of it will be completed in this financial year and the balance 50% in FY '28.

    Composition

    In-house projects(other)
    5 gigawatts100.0%

    Cancellations / Deferrals

    • deferred:Capex of INR 9,000 crores deferred from FY26 due to project delays (ROW, transmission, temporary GNA).

    "The company has a robust pipeline of in-house renewable projects under implementation, with clear timelines for completion."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹13,000 crores

    cut — project delays due to right of way issues and transmission system availability

    Debt

    Gross ₹56,000 crores · 3.3x EBITDA

    Guidance & targets

    8
    CategoryTargetPriority
    Capacity Addition
    Projects under implementation completion
    50% in FY27, 50% in FY28 (of 5 GW)
    		High
    Capex
    Total Capex
    INR25,000 crores
    		High
    Market Share
    Rooftop Solar Market Share
    20%
    		Medium
    Growth
    Rooftop Solar Business Growth
    at least 50-60%
    		Medium
    AT&C Loss Reduction
    Odisha DISCOM AT&C Loss Percentage
    12-13% range
    		High
    AT&C Loss Reduction
    Annual AT&C Loss Reduction Rate
    about 2% every year
    		High
    Capacity
    Small Modular Nuclear Reactor Capacity
    440 megawatt (2x220 MW)
    		Medium
    Project Development
    DPR completion for Nuclear Plants
    next 6 months' time
    		High

    Gujarat SPPA Finalization with other states

    next 4 to 6 weeks
    CurrentGujarat SPPA concluded, finalizing with other 4 states.
    TargetCompletion of SPPA finalization with all 4 states.

    Why it matters

    Crucial for full resolution of Mundra PPA issues and stable operations, impacting revenue visibility.

    We have now concluded the SPPA with Gujarat, and we are in the process of finalizing it with all the other 4 states, which we expect in next 4 to 6 weeks, we will complete.

    How to verify

    detailed_narrative[title='Mundra PPA Resolution']

    Risks & concerns

    4
    RiskSeverity

    Project Delays (ROW, Transmission)

    Right of Way and transmission system delays caused FY26 capex shortfall and deferred projects, though some issues are now resolved. — Management acknowledged

    medium

    Curtailment in Renewables

    Power curtailment due to grid constraints is happening in some places, but financial impact is mitigated for GNA-backed projects through cost reimbursement. — Analyst acknowledged

    medium

    Indonesian Coal Export Taxes

    Potential imposition of new export taxes by the Indonesian government on coal is under discussion and could impact future fuel costs. — Analyst acknowledged

    low

    Tata Projects Legacy Losses

    Legacy projects caused losses in Tata Projects in FY26, but these are now completed, and profitability is expected to return in FY27. — Analyst acknowledged

    medium

    Q&A highlights

    8

    “our guidance was, I don't think INR25,000 crores, but it was, I think, about INR22,000 crores. We have fallen short because some of the projects that we were planning to execute in the last quarter could not happen. And these projects are typically relating to the large utility scale projects, solar projects or wind projects or the transmission line projects. Many of the places, the right of way got delayed.”

    Explains a significant miss on capex guidance, attributing it to external factors like ROW and transmission delays, which are common challenges in the sector.

    asked by Sumit Kishore

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Financial Performance in FY26

    Tata Power reported a robust financial performance in FY26, with full-year PAT exceeding INR5,000 crores and EBITDA growing by 11% to INR16,090 crores. The fourth quarter also saw significant growth, with PAT up 8% to INR1,416 crores and EBITDA increasing by 10% to INR4,216 crores. This strong performance was attributed to all business segments, including generation, transmission, distribution, and renewables, with solar manufacturing PAT more than doubling to INR857 crores.

    02

    Renewable Capacity Expansion & Strategic Shift

    The company has a robust pipeline of nearly 5 gigawatts of renewable projects under implementation, with 50% expected to be completed in FY27 and the remainder in FY28. Going forward⏳, Tata Power plans to focus on hybrid and storage-backed renewable projects rather than pure solar or wind, aiming for more attractive returns and addressing grid integration challenges. This strategy also leverages their in-house solar cell and module manufacturing capabilities, ensuring compliance with domestic content requirements.

    03

    Mundra PPA Resolution & Operational Stability

    The long-standing issues with the Mundra plant's Power Purchase Agreements (PPAs) are nearing full resolution. The Supplementary PPA (SPPA) with Gujarat has been concluded, and finalization with the remaining four states is expected within the next 4-6 weeks. The plant is currently operating under Section 11, with billing aligned to the SPPA terms, ensuring operational stability and improved financial performance after not operating for 9 months in FY26.

    04

    FY27 Capex Plans and Project Execution

    Tata Power plans a significant capital expenditure of INR25,000 crores for FY27, a substantial increase from the INR13,000 crores spent in FY26. The FY26 capex was below initial guidance due to project delays caused by Right of Way (ROW) issues and transmission infrastructure availability. The FY27 capex will be directed towards large utility-scale projects, distribution, transmission, hydro projects, and the new 10 GW wafer and ingot manufacturing plant, including an annual INR1,000 crores for Mumbai transmission.

    05

    Odisha DISCOMs and Delhi Regulatory Asset Update

    The Odisha DISCOMs delivered an excellent performance in FY26, with PAT reaching INR809 crores, significantly up from INR439 crores in the previous year. The company expects continued strong performance in FY27, with AT&C losses projected to reduce by approximately 2% annually, aiming for a 12-13% range within the next 4-5 years. For Delhi DISCOMs, regulatory assets are set to be amortized over 6 years until 2032, as monitored by the Supreme Court and APTEL, providing clarity on past receivables.

    06

    Nuclear Power Ambitions Progress

    Tata Power is actively pursuing nuclear power projects, collaborating with NPCIL and three state governments. Land has been identified, and water allocation approvals are in progress. The company is undertaking detailed DPRs (Detailed Project Reports) for small modular 2x220 megawatt plants, with DPR completion expected within the next six months. This marks a concrete step towards diversifying its generation portfolio into nuclear energy, with a total capacity target of 440 MW.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.