Tata Power Company (TATAPOWER) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 consolidated revenue rose to ₹18,035.07 crore, with EBITDA up 17.3% and PAT up 6.1%, marking the 23rd consecutive quarter of PAT growth.

• Clean & Green energy forms 44% of capacity, targeting 70% by 2030 and 100% by 2045.

• Major investments in renewables, solar manufacturing, and a 40% stake in Bhutan's 600 MW Khorlochhu Hydro Project.

• All business segments—generation, transmission, distribution, renewables, and EV charging—showed strong performance and operational improvements.

• The Board approved a final dividend of ₹2.25 per share, totaling ₹719 crore, paid in July 2025.

Financial highlights

• EBITDA and PAT increased year-over-year, with PAT at ₹1,262 crore and EBITDA at ₹3,930 crore; margins improved to 15%.

• CapEx for the quarter was INR 3,700 crore, on track with the full-year plan of INR 25,000 crore.

• Net debt rose to ₹47,578 crore due to higher capex and working capital needs, but leverage ratios remained stable.

• Earnings per share (EPS) after regulatory deferral balances was ₹3.31 for Q1 FY26.

• Credit ratings remain strong (AA/Stable or better from major agencies).

Outlook and guidance

• Clean & Green portfolio expected to reach 70% of total capacity by 2030 and 100% by 2045.

• Expectation of higher power demand in late August and September as temperatures rise post-monsoon.

• Anticipate commissioning of 1,600 MW of own utility-scale renewable projects in the next three quarters, with more than 2 GW targeted for the year.

• Focus on expanding solar rooftop installations, EV charging, and pumped storage hydro projects.

• Ongoing negotiations for Mundra Power PPA and supplementary agreements.