Tata Power Company (TPWR IN) – Q1FY27 Result Update – Execution across businesses – ACCUMULATE
Published on 28 Jul 2026
Tata Power reported Q1FY27 EBITDA (including regulatory deferral income) of INR38.6bn, up 8% YoY and 8% ahead of our estimates, led by performance in the rooftop solar business and TP Solar (cell & module manufacturing). The EBITDA mix remained well diversified, with T&D contributing ~35%, thermal generation ~25%, and renewables ~40%. Management indicated that growth momentum is expected to continue across businesses and reiterated its FY27 guidance of commissioning 2.5–2.7GW of renewable capacity along with 60–70% revenue growth in the rooftop solar segment. The company also maintained its FY27 capex guidance of INR250bn, with ~20% already deployed in Q1FY27. On the Mundra project, approvals for the supplementary PPA are progressing as expected, with approvals from three states likely in August and the remaining state in September. Despite its sizable capex pipeline, the balance sheet remains manageable, with net debt-to-underlying EBITDA at 3.41x and net debt-to-equity at 1.25x. Following the better-than-expected performance, we raise our FY27/FY28 EBITDA estimates by 2–3% and revise our target price to INR414 (earlier INR400). We upgrade the stock to Accumulate from Hold, implying an upside potential of ~11%.
