Tata Power Company (TPWR IN) – Q4FY26 Result Update – Past the Mundra Drag; Focus on Renewables – HOLD
Published on 13 May 2026
Tata Power (TPWR) adjusted PAT growth of 10% YoY was broadly in-line with our estimate. Growth is driven by TP solar, IPP, Delhi & Odhisa discom. In Q4FY26 T&D contributed 60% to PAT , followed by renewable at 25% and coal / standalone at 10%. The key overhang through FY26 the Mundra SPPA is now largely resolved, with the agreement concluded with Gujarat and the remaining four procurer states in advanced stages of finalisation, materially reducing earnings uncertainty from FY27 onwards. TPWR has an operational capacity of 16.7GW, currently skewed toward thermal generation; however, this mix is expected to improve materially with ~5GW of in-house renewable capacity under implementation, targeted for commissioning equally across FY27 and FY28. EBITDA growth to be driven by continued performance at Odhisa discom, IPP addition and TP solar. We maintain our HOLD rating with an SoTP-based TP of INR400/share. Key catalysts include execution on the ~2.5GW FY27 renewable commissioning target, full SPPA finalisation across all Mundra procurer states, sustained ramp-up of the solar manufacturing business, and potential upside from the nuclear SMR initiative over the medium term.
