Tata Power posts record FY26 profit, boosts dividend amid clean energy surge

THEBUSINESSBYTES BUREAU

MUMBAI, MAY 12, 2026

Tata Power reported a strong operational and financial performance for the fourth quarter and full financial year 2025-26 (FY26), registering an all-time high annual reported Profit After Tax (PAT) of ₹5,118 crore for FY26, up 7 per cent year-on-year, backed by robust growth across renewables, transmission and distribution businesses, rooftop solar expansion and operational efficiencies.

The company also announced a reported PAT of ₹1,416 crore for Q4 FY26, marking an 8 per cent rise over the corresponding quarter last year. Revenue for the quarter stood at ₹15,962 crore, while EBITDA grew 10 per cent year-on-year to ₹4,216 crore. For the full year, revenue stood at ₹63,681 crore and EBITDA rose 11 per cent to ₹16,090 crore. The Board recommended a dividend of ₹2.50 per equity share for FY26 compared to ₹2.25 per equity share for FY25.

The company’s core business delivered a strong performance in FY26, recording 13 per cent revenue growth, 27 per cent EBITDA growth and 34 per cent PAT growth year-on-year, driven by improved operational efficiency and robust execution across business verticals.

The renewables business continued to emerge as a major growth driver with PAT rising 59 per cent year-on-year to ₹1,994 crore in FY26. During Q4 FY26, renewables PAT stood at ₹406 crore. The company commissioned 2.5 GW of renewable capacity during the year, including 968 MW of in-house projects and 1,484 MW of third-party projects. Tata Power Renewable Energy Ltd crossed 10 GW of cumulative solar EPC execution, while the company’s total renewable portfolio reached 11.6 GW, including 5.1 GW under construction.

The solar manufacturing business also recorded exceptional growth with FY26 PAT more than doubling to ₹857 crore, up 103 per cent year-on-year, driven by industry-leading yield exceeding 95 per cent. During FY26, TP Solar achieved revenue of ₹6,968 crore with production of 3,825 MW of modules and 3,759 MW of cells. The board of Tata Power Renewable Energy Ltd approved an investment of around ₹6,500 crore for setting up a 10 GW photovoltaic ingot and wafer manufacturing facility in two phases to support India’s solar self-reliance mission.

Tata Power’s rooftop solar business maintained its market leadership for the 11th consecutive year, with cumulative installations crossing 3.7 lakh and installed capacity exceeding 4.8 GWp. Rooftop solar PAT surged 150 per cent year-on-year to ₹499 crore in FY26, while Q4 PAT rose 94 per cent to ₹186 crore.

The Transmission and Distribution segment also delivered robust numbers with FY26 PAT rising 49 per cent year-on-year to ₹2,978 crore, while Q4 PAT stood at ₹949 crore, up 54 per cent.

Odisha DISCOMs continued their strong turnaround trajectory, posting FY26 PAT of ₹809 crore, an 84 per cent increase over the previous year.  Revenue from Odisha Distribution stood at ₹19,980 crore during the year, aided by operational improvements, higher collection efficiency and increasing consumer demand. AT&C losses in Odisha DISCOMs were reduced by 2 per cent compared to last year.

The company highlighted significant progress in its transmission business, with the portfolio now standing at 7,403 circuit kilometres, including 5,562 CKm operational lines and 1,841 CKm under construction. During the year, Tata Power completed two major tariff-based competitive bidding transmission projects — NRSS XXXVI Transmission Ltd and South East U.P. Power Transmission Company Ltd — with cumulative transmission lines of 1,823 CKm.

On the generation front, Maithon Power Ltd delivered FY26 revenue of ₹3,095 crore and PAT of ₹404 crore. Tata Power also reported progress in the 1,000 MW Bhivpuri Pumped Storage Project, where major electro-mechanical and hydro-mechanical packages have been awarded and key environmental and forest clearances secured.

The company further strengthened its regional energy partnerships in Bhutan. Its clean energy collaboration with DGPC crossed the 5,000 MW mark following the addition of the 404 MW Nyera Amari I & II Integrated Hydropower Project. The Royal Government of Bhutan and the World Bank Group also signed financing agreements totalling $515 million for the 1,125 MW Dorjilung Hydroelectric Power Project, in which Tata Power holds a 40 per cent equity stake. The first disbursement of ₹500 crore from PFC for the 600 MW Khorlochhu Hydro Power Project was also completed.

The company also noted progress on the Mundra Ultra Mega Power Project, where the supplementary power purchase agreement was successfully signed with GUVNL, while discussions with other procurers continue. The Ministry of Power has issued fresh directions under Section 11 permitting plant operations from April 1 to June 30, 2026.

Tata Power’s EV charging business further reinforced its leadership position during FY26. The company crossed the milestone of over two lakh home EV charger installations, while its EZ Charge mobile application surpassed five lakh registered users. Its nationwide charging network expanded to over 7,000 public and semi-public charging points, including more than 1,200 bus charging points, spread across 706 cities and towns.

Mumbai-headquartered Tata Power supplied 49.52 billion units of electricity to the grid during FY26, while its DISCOMs supplied around 47.92 billion units to consumers.

Dr. Praveer Sinha, CEO and Managing Director, Tata Power, said: “This quarter and year reflect our sustained focus on creating long-term value through disciplined growth, operational excellence and strategic partnerships. The addition of new clean energy assets, steady progress in TBCB projects, continued improvement in Distribution businesses in Odisha, Delhi & Mumbai and strengthening of cross-border regional energy collaboration, underscore our commitment to building a more resilient energy future.

 “As electricity demand continues to rise and peak requirements are projected to reach 270 GW this year, energy security and reliability remain critical priorities. Our focus on rooftop solar solutions, manufacturing-linked self-reliance and deeper backward integration will play a key role in enabling dependable and future-ready energy systems, driving Tata Power’s growth.

 Aligned with India’s clean energy ambitions, we continue to strengthen our capabilities across generation, transmission, distribution and customer-centric solutions thereby building a greener and smarter tomorrow,” he added.