Mr. Natarajan Chandrasekaran, Chairman, Tata Power
Macroeconomic and Sector update
FY26 has been a year of contrasts. The year began with
expectations of steady global growth spurred by spending on Artificial
Intelligence and resilient supply chains. Several landmark trade agreements
were finalised including the India-EU free trade agreement and the interim
trade deal with the US. However, these positive developments have been
accompanied by the start of the West Asia crisis which led to concerns about
stagflation – slowing growth coupled with rising inflation, and energy security.
The effects of climate change has also intensified. Over
the last 65 years, the Earth has absorbed more heat than it can release. With
the El Nino effect predicted for 2026, this year is anticipated to be hotter
with higher cooling requirements.
Parallelly, global spending on AI has picked up, and
is beginning to rival investment in oil & natural gas. Global data centres electricity
demand grew at 17% in 2025. This was much higher than the overall global
electricity demand growth of 3%. By 2030, data centres are expected to account
for nearly 3% of global electricity demand.
In this context, energy security is non-negotiable. Growth
will require balancing the power demands of the AI and a heating climate. This can
only be achieved when energy systems transition to cleaner, more resilient, and
decentralised models.
India’s Power Sector Update
& Projections
India’s energy system is transitioning to a cleaner,
greener, and more decentralised portfolio. We are now globally third in our
total renewable energy installed capacity.
As of 31st March 2026, India’s installed
generation capacity stood at 533 GW with clean and green sources contributing a
53% share. Solar leads the way with more than 150 GW installed capacity,
followed by wind. In the fiscal year, over 95% of the capacity added was clean
and green. Solar additions, made up nearly 80% of additions in the year.
By 2030, the total installed capacity is expected to
grow to 770 GW with clean & green capacity comprising 64% of the capacity. This
will require investments in battery and pumped storage projects. India’s transmission
network is also expected to grow from 5 lakh circuit kilometres to 6 lakh
circuit kilometres by 2030.
Solar rooftop adoption under PM Surya Ghar Yojana is
on the rise. As of FY26, cumulative rooftop installations had a capacity of ~26
GW. This is expected to grow to 65 GW by 2030.
This is a time of growth for the sector.
Company Performance
Your company, as one of India’s largest integrated
power companies, is well positioned to lead the country’s energy transition. In
this year:
1. Your
Company has crossed the 26 GW
capacity in generation portfolio including pipeline with 66% of capacity being
clean and green.
2. Your Company,
building on its partnership with Druk Green, Bhutan will develop the 1,125 MW
Dorjilung Hydropower Project in addition to the ongoing 600 MW Khorlochhu Hydro
Project.
3. We have commissioned ~2.5 GW of Renewable Energy
projects and have a strong pipeline of 5.1 GW of renewable projects.
4. The company continues to expand round-the-clock green
offerings with energy storage. Progress
has been made on the 1,000 MW Bhivpuri Pumped Storage Project and work on the
1,800 MW Shirwata Pumped Storage Project is also expected to start.
5. The 4.3 GW solar cell and module manufacturing plant
in Tirunelveli, Tamil Nadu, saw a full year of production.
6. Your company has transitioned to a direct customer
facing company with its Rooftop Solar and EV Charging solutions. It is the market
leader in the solar rooftop and installed ~2 GW of rooftop solar capacity during
the year, crossing cumulative installation of 4 GW, serving over 3 lakh
consumers. It also crossed the milestone of installing over 2 lakh EV home
chargers cumulatively.
7. Your company’s transmission portfolio is at 7,000
circuit kilometres, including a pipeline of more than 1,800 circuit
kilometres.
8. Your company serves over 13.1 million distribution
customers across 7 discoms in Delhi, Mumbai, Ajmer, and the entire state of
Odisha. This year, marks 5 years of Odisha transformation. For the first
time, all 4 Odisha discoms have started paying dividends to its shareholders, AT&C
losses have also been reduced by 2% in FY26, making a total 15% reduction since
takeover.
9. The company expects to have 30 GW capacity fully
operational by 2030
Financial Performance
In FY26, consolidated revenue remained stable at INR
63,681 cr compared to INR 64,502 cr in the previous year. Performance of
Renewables, Transmission & Distribution, and Generation largely mitigated
the impact of the shutdown of the Mundra Thermal Plant. Revenue from the
Rooftop business more than doubled year-on-year. The full-scale operation of
the 4.3 GW Solar Manufacturing facility also significantly contributed to the
revenues during the year.
The Profit After Tax (PAT before exceptional items) was
INR 5,212 cr compared to INR 5,197 in the previous year. EBITDA was INR 16,090
cr compared to INR 14,468 cr in the previous year, driven by higher contribution from the solar
manufacturing and rooftop businesses, higher regulated returns and enhanced
billing & collection efficiency in the Transmission & Distribution
segment.
Based on the performance, the Directors have
recommended a dividend of 250%, which is INR 2.5 per Equity share of INR 1/-.
Initiatives
Sustainability and a commitment to our communities have
driven our initiatives during the year.
Your company has expanded its Gaja Sanrakshana elephant
conservation programme across 20 forest ranges in Odisha to reduce
elephant-human conflict. As part of its afforestation & rewilding
initiatives, your company has also planted more than 50,000 indigenous trees. Your
company is also well on its way to achieving zero liquid discharge and solid
waste to landfill by 2030 and net zero by 2045 in alignment with Project
Aalingana.
On the CSR front, your company has also scaled up its
Pay Autention initiative for raising awareness and early intervention for
autism spectrum disorder (ASD). Tata
Power has also continued to build on its other CSR programmes. In the last
year, your company’s initiatives have spanned over 100 districts in 21 states,
and with a total CSR spend of INR 100.5 cr, your company has lit up over 5.2
million lives.
Way Forward
Tata Power today is leading the shift to an Energy as
a Service approach by enabling residential and C&I customers to switch to
clean and green solutions. The company is expanding across all its business
offerings including generation, transmission, distribution, renewable energy,
rooftop solar, EV charging, and manufacturing. The company will also be expanding
its solar manufacturing with a new project to be announced in coming months in Odisha.
With the support of our stakeholders, we believe that
the company will continue lighting up lives.
I compliment Tata Power’s employees and management for
this year of resilient growth and performance.