Tata Power reported a 7% rise in consolidated profit after tax to ₹5,118 crore for FY26. EBITDA increased by 11% to ₹16,090 crore, driven by renewable energy and distribution segments despite the Mundra plant's temporary shutdown.

Tata Power Reports 7% PAT Growth for FY26

Consolidated Profit After Tax (PAT) for FY26 reached ₹5,118 crore, a 7% increase year-on-year. Consolidated Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) grew 11% to ₹16,090 crore.

Reader Takeaway: Renewable growth offsets Mundra shutdown; regulatory disputes remain a watch point.

What just happened

Tata Power announced its consolidated financial results for the fiscal year ended March 2026. The company posted a consolidated PAT of ₹5,118 crore, up 7% from ₹4,775 crore in FY25. Consolidated EBITDA saw an 11% jump to ₹16,090 crore from ₹14,468 crore in the previous year. Revenue from operations, however, saw a marginal 1% dip to ₹63,681 crore from ₹64,502 crore.

Standalone revenue decreased significantly to ₹12,969 crore in FY26 from ₹21,288 crore in FY25. This was attributed to the temporary shutdown of the Mundra Thermal Power Plant and lower dividend income.

Why this matters

The growth in PAT and EBITDA highlights the company's ability to leverage its renewable energy and distribution businesses to compensate for challenges in its thermal power operations. The improved EBITDA margin to 25.26% from 22.43% signifies better operational efficiency.

The backstory

The Mundra Thermal Power Plant faced a temporary shutdown from July 3, 2025, to March 2026 for overhauling. While the company has a Supplementary Power Purchase Agreement (SPPA), engagement with other procurers is ongoing. Tata Power has been actively expanding its renewable capacity, reaching 7,856 MW in clean and green operational capacity. Its solar manufacturing facility in Tirunelveli is also operational.

What changes now

The company's board has recommended a dividend of ₹2.50 per equity share for FY26, an increase from ₹2.25 per share in FY25. Management has set ambitious targets for FY30, aiming for ₹1,00,000 crore in revenue, ₹30,000 crore in EBITDA, and ₹10,000 crore in PAT, supported by anticipated growth in electricity consumption.

Risks to watch

Ongoing regulatory disputes concerning tariff determinations and true-up petitions in Maharashtra and Odisha remain a key risk. The company is actively engaged in resolving these matters across various forums.

Peer comparison

While specific peer results for FY26 are not yet available, Tata Power's strategy of balancing thermal operations with significant renewable expansion and distribution network growth is a common theme in the Indian power sector. Companies like NTPC and Adani Power are also investing heavily in renewables.

Context metrics (time-bound)

• Clean Capacity: 7,856 MW operational.
• Total Generation Capacity: 16,716 MW.
• Customer Base: Exceeded 13.1 million.
• Mundra Plant Shutdown: July 3, 2025, to March 2026.

What to track next

Investors will be closely watching the resolution of the ongoing regulatory disputes, the progress of pumped storage projects like Bhivpuri and Shirwata, and the company's performance in meeting its ambitious FY30 targets.