TATAPOWER - Tata Power Co.

📊 NSE: TATAPOWER 🏢 Power Generation And Supply 📅 Last Updated: 12/14/2025 14:10

💰 Financial Performance

Revenue Growth by Segment

Consolidated Operating Income for Q2 FY26 was INR 15,769 Cr, up 3.4% YoY. Segment performance: Renewables grew 88.2% to INR 3,613 Cr; Delhi Discom (TPDDL) grew 1.4% to INR 3,147 Cr; Maithon Power (MPL) grew 8.1% to INR 829 Cr; Standalone revenue declined 44.6% to INR 2,566 Cr due to Mundra plant shutdown.

Geographic Revenue Split

Not explicitly disclosed by percentage; however, major operations are concentrated in India across Odisha (PAT INR 174 Cr, +362% YoY), Delhi (Revenue INR 3,147 Cr), Mumbai (Regulated equity INR 1,736 Cr), and Mundra (Gujarat).

Profitability Margins

Consolidated PAT (before exceptional items) for Q2 FY26 was INR 1,245 Cr, a decline of 18.8% YoY from INR 1,533 Cr. H1 FY26 PAT stood at INR 2,508 Cr, down 7.8% YoY from INR 2,721 Cr. Renewables PAT margin for Q2 FY26 was 14.1% (INR 511 Cr on INR 3,613 Cr revenue).

EBITDA Margin

Consolidated EBITDA for Q2 FY26 was INR 4,032 Cr, up 5.9% YoY from INR 3,808 Cr, representing a margin of 25.6%. H1 FY26 EBITDA grew 11.2% to INR 7,961 Cr from INR 7,158 Cr.

Capital Expenditure

FY25 actual capex was INR 17,459 Cr. FY26 planned capex is INR 25,000 Cr (Management target) or INR 18,000-20,000 Cr (CRISIL estimate). H1 FY26 actual capex incurred was INR 7,300 Cr.

Credit Rating & Borrowing

CRISIL AA+/Stable for NCDs and bank facilities; CRISIL A1+ for short-term debt. Net debt as of September 30, 2025, was INR 62,080 Cr with a net leverage ratio above 4.0x.

⚙️ Operational Drivers

Raw Materials

Coal (thermal generation), Solar Wafers (manufacturing), and Solar Cells/Modules (EPC business). Solar manufacturing EBITDA margins are approximately 26%.

Import Sources

Indonesia (Coal via 30% stake in PT Kaltim Prima Coal and 26% in PT Baramulti Suksessarana Tbk); Wafers are imported for the 4.3 GW solar cell and module plant.

Key Suppliers

PT Kaltim Prima Coal, PT Baramulti Suksessarana Tbk, and various global wafer suppliers for solar manufacturing.

Capacity Expansion

Current installed capacity is 15.8 GW (as of June 30, 2025). Planned RE addition of 2.6 GW in FY26 and 2.3 GW in FY27. Target to reach 70% RE mix by 2030 from current ~44%.

Raw Material Costs

Power purchase costs for Delhi Discom were INR 2,370 Cr in Q2 FY26, representing 75.3% of segment revenue. Solar manufacturing costs vary based on global wafer demand/supply and input prices.

Manufacturing Efficiency

Solar cell and module plant has stabilized production with reduced costs. AT&C losses in Odisha reduced by 1.7% YoY. Delhi AT&C losses were 5.5% in Q2 FY26.

Logistics & Distribution

Distribution business in Odisha saw PAT growth of 362% to INR 174 Cr in Q2 FY26 due to operational stabilization.

📈 Strategic Growth

Expected Growth Rate

16%

Growth Strategy

Aggressive RE capacity addition (target 2.6 GW in FY26); INR 10,000 Cr investment in a 10 GW ingot and wafer plant; expansion of rooftop solar and EV charging; pursuing PPP opportunities in power distribution and parallel licensing.

Products & Services

Electricity (Thermal, Hydro, Solar, Wind), Transmission services, Power Distribution, Solar Cells, Solar Modules, Rooftop Solar installations, and EV Charging stations.

Brand Portfolio

Tata Power, Tata Power Solar, Pay Autention.

New Products/Services

4.3 GW Solar Cell and Module manufacturing; Firm and Dispatchable Renewable Energy (FDRE) projects with 1,317 MW and 585 MW pipelines.

Market Expansion

Expansion into parallel distribution licenses and PPP models in new circles; target to reach 70% RE generation mix by 2030.

Market Share & Ranking

India's largest integrated private power utility with 15.8 GW capacity.

Strategic Alliances

Resurgent Power Ventures Pte Ltd (Platform for Prayagraj Power); JVs in Indonesian coal mines (30% and 26% stakes).

🌍 External Factors

Industry Trends

Shift toward Firm and Dispatchable Renewable Energy (FDRE); government push for Discom privatization and parallel licensing.

Competitive Landscape

Competes with other private utilities and state-owned generation/distribution companies in RE and distribution bidding.

Competitive Moat

None

Macro Economic Sensitivity

Sensitive to global coal prices and solar wafer price volatility. Interest rate sensitivity on INR 62,080 Cr net debt.

Consumer Behavior

Increasing demand for rooftop solar (Rooftop business partly offset Mundra losses) and EV charging infrastructure.

Geopolitical Risks

Trade barriers on solar component imports; regulatory changes in Indonesian coal export policies.

⚖️ Regulatory & Governance

Industry Regulations

Electricity Act amendment proposals regarding parallel distribution licenses; DERC/DERC regulatory asset amortization schedules.

Environmental Compliance

Targeting Net Zero by 2045; 100% green generation by 2045; water neutrality target achieved by 2023.

Taxation Policy Impact

Effective tax rate for Delhi Discom was 23.6% in Q2 FY26 (INR 97 Cr tax on INR 411 Cr PBT).

Legal Contingencies

Supreme Court order for Delhi regulatory asset liquidation over 7 years; legal order for approximately $500 million plus 5.33% interest mentioned in credit reports.