Tata Power , India's largest integrated power company, has reported a robust performance for the first quarter of fiscal year 2026, marking its 23rd consecutive quarter of profit after tax (PAT) growth. The company's consolidated PAT increased by 6% year-on-year to ₹1,262.00 crore for the quarter ended June 30, 2025.

Financial Highlights

• Revenue from operations rose 4% to ₹18,035.00 crore, compared to ₹17,294.00 crore in Q1 FY25.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 17% to ₹3,930.00 crore.
• The company's renewables business saw significant growth, with PAT increasing by 95% year-on-year to ₹531.00 crore.

Operational Performance

Tata Power's operational highlights for Q1 FY26 include:

• Commissioned 94 MW of renewable energy capacity, bringing the total operational renewable capacity to 5.6 GW.
• Achieved a record rooftop solar installation of 270 MWp, more than doubling from 111 MW in the same quarter last year.
• Maintained its position as the No. 1 player in the rooftop solar segment with over 2 lakh installations and a cumulative capacity exceeding 3.4 GWp.

Segment-wise Performance

Renewables

The renewables segment emerged as a major growth driver:

• Solar rooftop revenue more than doubled to ₹823.00 crore.
• The manufacturing business, TP Solar, reported a PAT of ₹100.00 crore and revenue of ₹1,613.00 crore.
• Manufactured 949 MW of solar modules and 904 MW of solar cells during the quarter.

Transmission and Distribution (T&D)

• T&D business PAT grew by 26% year-on-year to ₹440.00 crore (excluding one-off items from the previous year).
• Odisha Discoms PAT increased by 156% to ₹105.00 crore.

Strategic Developments

Tata Power has made significant strides in expanding its clean energy portfolio:

• Secured a Letter of Award for an 88 MW Round-the-Clock renewable project from SJVN.
• Signed a 200 MW Firm and Dispatchable Renewable Energy PPA with NTPC.
• Collaborated with Tata Motors to set up a 131 MW wind-solar hybrid project for its manufacturing units.

Management Commentary

Dr. Praveer Sinha, CEO and Managing Director of Tata Power, stated, "We have commenced FY26 on a high note, with strong performance across all our business verticals. Our renewable energy portfolio continues to exceed expectations, as we drive innovation, scale, and efficiency across the clean energy value chain."

Future Outlook

Tata Power is actively pursuing its clean energy goals:

• Targeting 40 million customers by 2030.
• Applied for expansion of electricity distribution license in key growth areas of Maharashtra.
• Aims to reach over 65% of its generation portfolio from clean, green sources.

The company's focus on renewable energy, strategic partnerships, and expansion in the T&D sector positions it well for sustained growth in the evolving energy landscape.

Tata Power's Q1 FY26 results demonstrate its strong momentum in the clean energy transition and its ability to deliver consistent financial performance across diverse business segments.

Tata Power , a leading Indian power company, has made a significant move in its clean energy strategy by acquiring a 40% stake in Khorlochhu Hydro Power Limited (KHPL), a Bhutan-based hydropower company. This acquisition marks the first tranche of Tata Power's strategic investment plan in the hydropower sector.

Investment Details

Tata Power has invested ₹120.00 crore to acquire 1.2 crore equity shares of KHPL, each with a face value of ₹100.00. This investment represents 40% of KHPL's issued and paid-up equity capital. The transaction was completed through a cash consideration, as disclosed in the company's regulatory filing.

Strategic Implications

This acquisition is part of a larger investment plan by Tata Power, with a total projected investment of approximately ₹830.00 crore over the next five years. The primary objective of this strategic move is to develop a 600 MW hydropower project in Bhutan, with an estimated project cost of ₹6,900.00 crore.

About Khorlochhu Hydro Power Limited

KHPL, incorporated on June 12, 2015, is a relatively new player in the Bhutanese power sector. Key points about KHPL include:

• Country of operations: Bhutan
• Net worth: ₹608.00 crore (as of December 31, 2024)
• Turnover: Nil (for the last three years)
• Current project: Development of a 600 MW hydropower project

Tata Power's Clean Energy Transition

This investment aligns with Tata Power's strategy to accelerate its transition towards clean and green energy sources. By acquiring a stake in KHPL, Tata Power is expanding its footprint in the hydropower sector, which is considered a renewable and sustainable energy source.

Regulatory Compliance

The acquisition has been disclosed in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Tata Power has confirmed that the transaction does not fall under related party transactions. However, post-acquisition, KHPL will become an associate company of Tata Power and consequently a related party.

Future Outlook

With the completion of this first tranche, Tata Power is set to make the remaining investments over a period of five years. This long-term commitment underscores the company's confidence in the potential of hydropower and its dedication to expanding its clean energy portfolio.

As the project develops, it will be interesting to observe how this strategic investment contributes to Tata Power's overall growth and its impact on the company's clean energy objectives.