Tata Power Company Limited — Q4 FY26 earnings call

Call held 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

  • 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

  • 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

2 periods

Q4 FY26

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

FY26

  • 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%

What they filed

Q1 FY27: revenue up 7.6%, net profit down 46.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue4,889 5,731 5,965 5,285 2,625 −46%2,483 −57%2,833 −53%5,689 +8%
EBITDA1,205 1,168 1,008 951 577 −52%331 −72%628 −38%1,058 +11%
Net profit1,009 978 409 520 431 −57%-160 −116%334 −18%277 −47%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

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 gigawatts 100%

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

high confidence
  • Capex ₹13,000 Cr Cut — project delays due to right of way issues and transmission system availability
    • Large utility scale projects, solar projects, wind projects, transmission line projects
    • Distribution projects, hydro projects
    • New 10 gigawatt wafer and ingot plant
    • 2,800-megawatt pump hydro at Shirwata
    • Bhutan hydro (600 MW + 1,125 MW)
    • Mumbai transmission (annual capex) ₹1,000 Cr

    Previously planned ₹22,000 Cr

    Our distribution business everywhere will continue to grow, and we will have large capital expenditure as planned in our large utility scale projects as also in our hydro projects in Bhutan and the pumped hydro project that we are implementing in Bhivpuri. We have informed you that we are going to start work in our new 10 gigawatt of wafer and ingot plant in 2 phases, and that will cater to our existing operations of cell and module plant, which will require Indian made wafers from 1st June 2028 onwards... Our debt is at approximately INR56,000 crores. And this is in spite of a capital expenditure of nearly INR13,000 crores in the last financial year.
  • Debt Gross ₹56,000 Cr · 3.3× EBITDA
    Our debt is at approximately INR56,000 crores. And this is in spite of a capital expenditure of nearly INR13,000 crores in the last financial year. Our leverage ratios are very stable. Our net debt to underlying EBITDA is 3.3 and our net debt to equity is 1.2, which is very competitive for infrastructure and power industry.

Guidance & targets

Capacity Addition

  • Projects under implementation completion Capacity Addition · FY27 & FY28 · High confidence 50% in FY27, 50% in FY28 (of 5 GW)
    nearly 5 gigawatt of projects which are under implementation, and these are all in-house projects. 50% of it will be completed in this financial year and the balance 50% in FY '28.

    — Praveer Sinha

Capex

  • Total Capex Capex · FY27 · High confidence INR25,000 crores
    It's about INR25,000 crores. That is what we are expecting.

    — Praveer Sinha

Market Share

  • Rooftop Solar Market Share Market Share · next 3 years · Medium confidence 20%
    our target is that in next 3 years, we will do 20%.

    — Praveer Sinha

Growth

  • Rooftop Solar Business Growth Growth · FY27 · Medium confidence at least 50-60%
    in FY '27, the rooftop market, the rooftop business will grow, if not by 100%, at least by 50%, 60%.

    — Praveer Sinha

AT&C Loss Reduction

  • Odisha DISCOM AT&C Loss Percentage AT&C Loss Reduction · next 4 to 5 years · High confidence 12-13% range
    all of them will come in 12% to 13% range in the next 4 to 5 years.

    — Praveer Sinha

  • Annual AT&C Loss Reduction Rate AT&C Loss Reduction · Annually · High confidence about 2% every year
    you will reduce about 2% every year in that sort of reduction will be a ballpark number.

    — Praveer Sinha

Capacity

  • Small Modular Nuclear Reactor Capacity Capacity · Medium confidence 440 megawatt (2x220 MW)
    I told you 2x220 megawatts, so 440 megawatt.

    — Praveer Sinha

Project Development

  • DPR completion for Nuclear Plants Project Development · within 6 months · High confidence next 6 months' time
    we will be able to do DPR in next 6 months' time.

    — Praveer Sinha

What to watch in Q1 FY27

Gujarat SPPA Finalization with other states

next 4 to 6 weeks
Current Gujarat SPPA concluded, finalizing with other 4 states.
Target Completion 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.

Risks & concerns

  • Project Delays (ROW, Transmission)

    medium

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

    Management acknowledged

  • Curtailment in Renewables

    medium

    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

  • Tata Projects Legacy Losses

    medium

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

    Analyst acknowledged

  • Indonesian Coal Export Taxes

    low

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

    Analyst acknowledged

Q&A highlights

7 direct
FY26 Capex Shortfall vs. Guidance Direct
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

Delhi DISCOM Regulatory Orders & Asset Wind Down Direct
both the Supreme Court and APTEL are monitoring that. And the regulatory commission has promised that this will be amortized over 6 years up to 2032. And we are closely monitoring that. They have already given an affidavit under which they will amortize it.

Provides an update on the resolution of long-standing regulatory assets, indicating a clear path for amortization and a positive for cash flow visibility.

Asked by Sumit Kishore

Impact of Curtailment on Renewables Partial
So the curtailment are happening in a few places. That also is not on a continuous basis. So very difficult for us to say that how much of curtailment will happen... In cases where we have the GNA and curtailment takes place, there, of course, we are reimbursed the cost on the supply basis.

Acknowledges ongoing curtailment issues in renewables, a key operational risk, but clarifies that cost reimbursement mechanisms are in place for GNA-backed projects, mitigating financial impact.

Asked by Apoorva Bahadur

Indonesian Coal Prices and Potential Taxes Direct
one is on the coal prices, there has not been too much of movement. And we expect that prices will be within plus/minus 5% in that range. We're not expecting lot of deviation. The second is that we are hearing that there will be some more taxes that will be imposed on export of coal. But this has been under discussion for the last many months.

Addresses a key input cost risk for thermal generation, indicating stable prices but flagging potential new export taxes from Indonesia, which could impact future costs.

Asked by Apoorva Bahadur

Tata Projects' Continued Losses Direct
What has happened in Tata Projects is they had legacy projects such as the dedicated freight corridor project... Fortunately, all those projects have now been completed and very little of it is left. And I do expect that in FY '27, it will be back, and it will start making profit from FY '27.

Explains the reason for ongoing losses in Tata Projects and provides a clear timeline and expectation for a return to profitability in FY27, signaling a resolution of past issues.

Asked by Mohit Kumar

Strategy for New RE Capacity Addition Direct
we have now come up with a unique solution where we can offer renewable projects along with the storage projects, the pumped hydro project... we will not do pure solar or pure wind, but it will be hybrid with storage. And those will be much attractive in terms of the returns compared to the type of projects, which have been bid out in the last 2 years.

Outlines a strategic shift towards hybrid and storage-backed renewable projects, aiming for better returns and addressing grid integration challenges, indicating a more selective approach to capacity expansion.

Asked by Mohit Kumar

Nuclear Power Development Plans Direct
on nuclear, we have shared with you that we have working with 3 state governments. We have identified the land. We have also taken up for water allocation... We are now doing detailed DPR of projects to be set up, and this will be done in collaboration with NPCIL. These are small modular 2x220 megawatt plants... we will be able to do DPR in next 6 months' time.

Provides concrete details on the company's nascent nuclear power ambitions, including capacity, partnerships, and a clear near-term milestone (DPR completion), indicating progress in a new growth area.

Asked by Rupesh Rai

Use of Domestic Cells for Utility Scale Projects Direct
I think some of them do require domestic. So, we are working on that because they will bid under those conditions that you will be using domestic cell and modules. So out of the projects that we have, we find that majority are with domestic cell and modules.

Clarifies the company's strategy regarding domestic content requirements (DCR) for utility-scale solar projects, confirming that a majority of their pipeline will comply, leveraging their own manufacturing capabilities.

Asked by Nikhil Nigania

2 min read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

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