Tata Power Co.Q1 FY27
Tata Power Co. Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹370P/E: 30.6Market Cap: ₹1.2L CrSector: Power
Management growth scorecard
Revenue
Category 2
Margin
Category 3
Fundraise
Yes
Order
No
Capex
Yes
2 of 5 growth signals are positive.
Full analysisRevenue guidance
Category 2- →Tata Power expects strong growth in rooftop solar business, targeting a market size of around 30-40 gigawatts by 2029-2030, with a plan to increase market share from 12-13% to 25%, becoming the market leader by a large margin.
- →Rooftop business revenue has grown nearly 100% year-on-year, with plans to grow 60-70% this year.
- →Renewable energy capacity is set to increase significantly, with plans to commission 2,500-2,700 MW this year, increasing total renewable capacity from 6.7 GW to over 9 GW by year-end.
- →Module production crossed 1,000 MW in the latest quarter, with efforts to improve both yield and efficiency to peak in Q2.
- →Overall revenue and PAT have shown consistent growth over years, with a CAGR of 8% (revenue) and 7% (PAT).
- →Transmission business and TBCB projects have strong growth pipelines supporting future revenue increases.
Margin guidance
Category 3- →Tata Power has delivered 27 consecutive quarters of increasing PAT and EBITDA, indicating a strong growth foundation.
- →CAGR over past years: Revenue at 8%, EBITDA at 12%, and PAT at 7%, demonstrating consistent profitability growth.
- →Renewable cluster showing strong performance: Revenue up 22%, EBITDA up 23%, PAT up 37% recently.
- →Rooftop solar business growing rapidly with revenue growth near 100% YoY and plans for 60-70% growth this year.
- →Full-year renewable capacity expected to cross 9 GW, up from 6.7 GW currently, boosting revenues further.
- →TP Solar margins high (~25%) and expected to sustain given efficiencies and premium products.
- →Large capex (~INR 6,500 crores in Q2) targeting renewables, pumped storage, and transmission projects will drive future EBITDA and PAT.
- →Expansion in rooftop market share (targeting 25% from current ~12%) supports significant earnings growth.
- →Overall outlook: strong growth in earnings, operating profits, and EPS driven by accelerating renewable addition and growing high-margin businesses.
3 more insights locked — sign up free to unlock
Fundraise plans
Yes- →Tata Power plans significant capex of around INR 25,000 crores for the year, with about 40-45% allocated to renewables and the rest to distribution, transmission, and pump storage projects.
- →Net debt to EBITDA stands at 3.41 and net debt to equity at 1.25, indicating controlled leverage within internal guardrails.
- →The company is focused on calibrated investments and maintaining healthy leverage ratios.
- →There is no direct mention of any immediate or planned new fundraising through debt or equity in this transcript.
- →Discussions suggest that future investments, including in nuclear and pump storage projects, will be carefully planned and approved by the Board as per regulatory clearances.
- →Any detailed fundraising plans, if required, will likely align with project financing tied to specific capacity additions like renewables and pump storage.
Order book
No- →The Tata Power Company's renewable energy auction volumes have been muted recently, with a slowdown observed in Q1 FY27.
- →State DISCOMs are increasingly conducting their own customized bidding rather than relying on central agencies like SECI.
- →For rooftop solar, order inflow was about INR 1,091 crores for 387 megawatts in the referenced quarter.
- →The company has a good pipeline of excellent projects in Tata Projects, with a turnaround expected as legacy loss-making projects are closing.
- →In TBCB (Tariff Based Competitive Bidding) projects, commissioning and related revenues will start flowing in from Q2 FY27 onwards.
- →Tata Power is actively commissioning 500 MW in renewable projects very soon, with capacity ramp-up expected over the next quarters.
- →Overall, while exact current pending orderbook numbers are not explicitly disclosed, the company indicates a strong and improving order pipeline across segments.
Capex plans
Yes- →First quarter capex was INR 5,300 crores; full year capex planned at INR 25,000 crores.
- →Approximately 40-45% of capex allocated to renewables; remaining to FGD projects, transmission, and distribution.
- →Plans to commission 800-900 MW renewable projects in Q2.
- →Progress on pumped storage projects (PSP) with 2,800 MW capacity coming by 2029-2031; additional sites under DPR study, with new projects expected in next 12 months.
- →Starting work on 1,800 MW Shirwata PSP later this year after approvals.
- →Tied up PPA for 600 MW Bhutan project; expecting operational by 2030.
- →Financial closure in progress for 1,125 MW Dorjilung project.
- →Transmission projects ongoing, including 2,000+ km of lines, with regulatory approvals in place.
- →Focus on calibrated, strategic investments aligned with long-term returns and market opportunities.
How does Tata Power Co. rank vs peers in Power?
Pro feature1Tata Power Co.
Rev 2Mar 3
See full Power sector rankings
How does Tata Power Co. rank in Power?
Compare Tata Power Co. against every Power company (Q1 FY27) on revenue, margins and earnings-call signals.