Tata Power has announced a comprehensive postal ballot notice for six material related party transactions (RPTs) totaling ₹47,854 crore for FY27, requiring shareholder approval under SEBI regulations. The company has scheduled remote e-voting from February 17, 2026 to March 18, 2026 to seek member consent for these significant business arrangements.

Major Transaction with Tata Projects Limited

The largest proposed transaction involves ₹27,984 crore with Tata Projects Limited (TPL), an associate company where Tata Power holds a 22.70% stake. This arrangement encompasses multiple components designed to leverage TPL's expertise in executing large infrastructure projects.

The primary focus involves EPC services for Flue Gas Desulphurisation projects at Tata Power's 4150 MW Mundra Thermal Power Generation Plant and 447 MW Jojobera Plant. Additionally, TPL will participate in the competitive bidding process for the 1,800 MW Shirawta Pumped Storage Project, including Civil and Structural Works, Hydro-Mechanical Works, and Electromechanical Works.

Strategic Alliance with Tata Steel Limited

The second major transaction involves ₹4,270 crore with Tata Steel Limited (TSL), a promoter group company where Tata Sons holds 31.76% shares. This comprehensive arrangement covers multiple business activities reflecting the ongoing commercial relationship between the two Tata Group entities.

Tata Power will continue selling power from its Jojobera and Haldia units to TSL, with tariffs for regulated units determined by the Jharkhand State Electricity Regulatory Commission. The company also plans to construct transmission infrastructure and provide operation and maintenance services for TSL projects.

Subsidiary Transactions and Renewable Energy Focus

The postal ballot includes four additional transactions involving Tata Power's subsidiaries, demonstrating the company's integrated approach to renewable energy and distribution operations.

Tata Power Renewable Energy Limited (TPREL) will engage in ₹7,000 crore worth of transactions with TP Solar Limited, primarily involving solar module procurement and raw material supply. TPREL will also conduct ₹4,000 crore in transactions with TP Vardhaman Surya Limited, including domestic lending and project management services for a 966 MW Solar and Wind hybrid plant.

Odisha Distribution Operations

Two separate ₹4,600 crore transactions involve Tata Power's Odisha distribution subsidiaries with GRIDCO Limited. TP Central Odisha Distribution Limited and TP Western Odisha Distribution Limited will continue their power purchase arrangements with GRIDCO, as mandated by their respective vesting orders from the Odisha Electricity Regulatory Commission.

Voting Process and Regulatory Compliance

The remote e-voting will be conducted exclusively through NSDL's platform, with no physical postal ballot forms being distributed. Members whose names appear in the Register of Members as of February 6, 2026 (cut-off date) are eligible to participate in the voting process.

All proposed transactions have received approval from the Audit Committee's Independent Directors and have been reviewed by external consulting firms for arm's length pricing compliance. The transactions are designed to be conducted in the ordinary course of business while leveraging Tata Group synergies and ensuring operational efficiency.

The results will be announced within two working days after the voting period concludes, with the Scrutinizer's report determining the validity of votes cast. If approved by the requisite majority, the resolutions will be deemed passed on March 18, 2026.

Tata Power Company Limited has delivered a strong operational and financial performance in the third quarter, with EBITDA increasing 12% year-on-year despite the Mundra plant remaining non-operational throughout the quarter. The company's diversified business portfolio, particularly solar manufacturing and rooftop solar segments, drove the robust performance.

Strong Financial Performance Despite Challenges

The company reported consolidated EBITDA of ₹39.13 crores for the third quarter compared to the previous year, marking a 12% year-on-year increase. PAT increased marginally to ₹11.94 crores despite substantial impact from Mundra being non-operational for the quarter. For the nine-month period, EBITDA jumped 12% year-on-year to ₹118.74 crores compared to ₹106.39 crores in the previous year.

Solar Manufacturing Business Delivers Exceptional Growth

The solar cell and module manufacturing segment emerged as a key growth driver, with plant profit after tax surging to ₹2.51 crores in the quarter compared to ₹1.12 crores last year. For the nine-month period, the plant delivered PAT of ₹5.92 crores, representing an impressive 154% increase compared to ₹2.33 crores in the previous year nine-months.

Rooftop Solar Business Shows Remarkable Progress

The rooftop solar segment demonstrated exceptional performance, crossing one gigawatt in the nine-month period. In Q3, the company executed 372 MW compared to 173 MW in the previous year. The rooftop PAT increased significantly to ₹1.11 crores in the quarter compared to ₹0.60 crores last year. For the nine-month period, it reached ₹3.24 crores compared to ₹1.10 crores in the previous year.

Odisha Distribution Business Turnaround

Odisha Discoms showed remarkable improvement with profit increasing to ₹2.26 crores in the quarter compared to ₹0.86 crores last year. In the nine-month period, profit reached ₹5.05 crores compared to ₹1.64 crores in the previous year. The company highlighted significant improvements in collection efficiency, billing efficiency, and loss reduction across all four discoms.

Mundra Plant Resolution Progress

The company has made substantial progress in resolving Mundra plant issues, concluding arrangements with Gujarat on all SPPA matters except one point. Management expects to close this remaining issue within 2-3 weeks and begin parallel discussions with other states to restart plant operations by month-end, positioning for summer demand requirements.