Tata Power and Druk Green Power Corporation (DGPC) have signed a Memorandum of Understanding (MoU) to establish a comprehensive skill development ecosystem. The agreement aims to build a future-ready workforce to support the operation and maintenance of large-scale clean energy assets under the strategic partnership to jointly develop 5,000 MW of clean energy capacity.

Partnership Overview

The key parameters of this collaboration are outlined below:

Strategic Implementation

The MoU was signed in Thimphu, Bhutan, in the presence of the Hon'ble Prime Minister of Bhutan, Lyonchhen Tshering Tobgay. Dr Praveer Sinha, CEO & Managing Director, Tata Power, and Dasho Chhewang Rinzin, Managing Director, DGPC, formally executed the agreement. Tata Power will provide technical expertise, training infrastructure, courseware, and accreditation support through the Tata Power Skill Development Institute (TPSDI). DGPC will facilitate the mobilisation and deployment of trainees and secure necessary approvals from the Government of Bhutan.

Phased Training Approach

The proposed skill development initiatives will be implemented in a phased manner. Phase 1 focuses on immediate deployment of safety training and mandatory safety induction programmes for project workers. Phase 2 involves expansion into technical skill development covering construction, material handling, and earth-moving equipment operations. Phase 3 targets the development of specialised capabilities for the long-term operation and maintenance of clean energy assets.

The Tata Power Company Limited announced its audited financial results for the quarter and full year ended March 31, 2026, subsequently publishing an extract of the consolidated financial results as a newspaper advertisement under Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 on May 13, 2026, in Financial Express, The Indian Express, and Loksatta. On a consolidated basis, the company reported a net profit of ₹5,117.56 crore for FY26, marking an improvement from ₹4,775.37 crore recorded in FY25. The Board recommended a final dividend of ₹2.50 per equity share of ₹1 each (at 250%) for FY26, subject to shareholder approval at the 107th Annual General Meeting scheduled for July 7, 2026. The results were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on May 12, 2026. Pursuant to Regulation 46(2)(oa) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company informed the exchanges that the audio call recording of the Analyst Call held on May 12, 2026, is available on its website.

Consolidated Financial Performance

Tata Power's consolidated total income for FY26 stood at ₹64,171.66 crore, compared to ₹66,992.17 crore in FY25. Revenue from operations was ₹62,428.59 crore for FY26 versus ₹65,478.24 crore in FY25. Total expenses for the year were ₹59,401.41 crore, down from ₹60,367.67 crore in the prior year. The profit before tax for FY26 was ₹6,635.99 crore, compared to ₹6,319.62 crore in FY25. Net profit attributable to owners of the company for FY26 was ₹3,747.19 crore, compared to ₹3,971.00 crore in FY25. Earnings per equity share (of ₹1 each) after net movement in regulatory deferral balances stood at ₹11.72 (basic) and ₹11.71 (diluted) for FY26, versus ₹12.42 (basic) and ₹12.41 (diluted) in FY25.

The following table summarises the key consolidated financial results:

Q4 EBITDA Performance

On a quarterly basis, Tata Power's Q4 EBITDA stood at ₹2,600 crore, compared to ₹3,246 crore in the same quarter of the previous year. The EBITDA margin for Q4 came in at 17.44%, compared to 18.98% in the corresponding prior-year period, reflecting the year-on-year contraction in operating profitability. Q4 revenue from operations was ₹14,900.20 crore versus ₹17,095.88 crore in Q4 of the prior year.

Consolidated Segment Performance

The Transmission and Distribution segment was the largest contributor to consolidated segment results for FY26 at ₹4,398.59 crore, followed by Renewables at ₹4,340.93 crore and Thermal & Hydro at ₹1,964.61 crore. The Renewables segment recorded notable growth in segment revenue and net movement in regulatory deferral balances, rising to ₹15,027.82 crore in FY26 from ₹9,876.36 crore in FY25. Thermal & Hydro segment revenue declined to ₹11,635.93 crore in FY26 from ₹19,739.07 crore in FY25.

Standalone Financial Performance

On a standalone basis, Tata Power reported net profit of ₹1,124.66 crore for FY26, compared to ₹3,132.68 crore in FY25. Standalone total income for FY26 was ₹15,067.69 crore, against ₹24,848.91 crore in FY25. Revenue from operations on a standalone basis stood at ₹13,225.50 crore in FY26, compared to ₹22,359.44 crore in FY25. The significant decline in standalone revenue and profit is primarily attributable to the temporary suspension of the Mundra Power Plant effective July 3, 2025, for overhauling activities. On March 23, 2026, the company executed a supplementary power purchase agreement (SPPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) with effect from April 1, 2025, with revised tariff and power supply framework, and the Ministry of Power issued fresh directions permitting plant operations from April 1, 2026 to June 30, 2026 under the SPPA terms.

Dividend and Key Corporate Developments

The Board recommended a final dividend of ₹2.50 per equity share of ₹1 each (at 250%) for FY26. The record date for dividend payment has been fixed as June 23, 2026, and the dividend, if approved at the AGM, will be paid on or after July 10, 2026. The paid-up equity share capital of the company stands at ₹319.56 crore.

During the quarter, Tata Power entered into a joint venture with Druk Green Power Corporation (DGPC) of Bhutan for the development of the 1,125 MW Dorjilung Hydro Power Project, acquiring a 40% equity stake in Dorjilung Hydro Power Limited (DHPL). The company invested ₹50 crore as the first tranche out of a total proposed investment of approximately ₹1,572 crore, subscribing to 50,00,000 equity shares of Nu. 100 each, representing 40% of the issued and paid-up equity share capital of DHPL.

The company also recognised an additional expense of ₹74 crore (consolidated) towards gratuity and leave encashment liabilities pursuant to the Government of India notifying four Labour Codes on November 21, 2025. Of this, ₹62 crore pertains to the regulated business and has been considered as a pass-through in tariff. On a standalone basis, an additional expense of ₹15 crore was recognised, of which ₹10 crore pertains to the regulated business.

Management Guidance: FY27 Outlook

In its post-results concall, Tata Power management shared detailed guidance across key business verticals for FY27. Management acknowledged that FY26 capital expenditure of ₹13,000 crore was below the previously guided range of ₹20,000–22,000 crore, primarily due to phasing impacts from delayed large utility-scale solar/wind and transmission line projects. For FY27, the company expects CapEx to be around ₹25,000 crore, including deferred projects from FY26, and plans to add approximately 2 GW of IPP-RE capacity, with solar contributing 1.5 GW to 1.8 GW.

The following table summarises the key management guidance highlights:

Management expects Tata Projects to return to profitability in FY27 after resolving legacy project issues, and noted the company is exploring new coal-fired power plant opportunities if tariffs are attractive and power purchase agreements (PPAs) are bankable. Odisha DISCOMs are projected to have their "best year" in FY27, with aggregate technical and commercial (AT&C) losses in other circles expected to reduce by approximately 2% annually, with the company aiming for 12–13% within four to five years. The company's manufacturing unit will supply cells and modules for its internal pipeline, including rooftop solar — expected to grow by at least 50–60% in FY27 — and utility-scale projects requiring Indian-made components from June 1, 2026.

Arbitration Matter and Key Risks

The company disclosed a significant pending legal matter. The Singapore International Arbitration Centre (SIAC) published a quantum award on July 1, 2025 and a final award on August 27, 2025, directing Tata Power to pay Kleros Capital Partners Limited damages of USD 490,320,000 with simple interest of 5.33% from November 30, 2020, and costs of SGD 11,341,963.46 with simple interest of 5.33% from July 1, 2025. Based on legal counsel advice, the company filed an appeal on October 23, 2025 with the Singapore International Commercial Court (SICC) for setting aside the awards. The company does not foresee any affirmative payment obligation, and accordingly, no provision has been recorded in the financial results for the quarter and year ended March 31, 2026. The hearings on the case are completed and the order is reserved. The statutory auditors have issued an emphasis of matter in this regard, though their opinion is not modified.

During the quarter, the company also recognised an impairment provision of ₹94 crore as an exceptional item on its investment in Adjaristsqali Netherlands B.V. (ABV), a joint venture held for sale. Additionally, a deferred tax asset of ₹250 crore was recognised on previously unrecognised business losses during the quarter, based on reasonable certainty of generating taxable profits.