The Tata Power Company Limited - Q1 FY'26 Earnings Conference Call
Date: August 1, 2025
Introduction
This document contains the transcript of The Tata Power Company Limited's Q1 FY'26 Earnings Conference Call. The call was held on August 1, 2025, and featured management providing an overview of the company's performance and answering questions from analysts.
Management Team
Present Management:
- Dr. Praveer Sinha – CEO & Managing Director
- Mr. Sanjeev Churiwala – Chief Financial Officer
- Mr. J. V. Patil – Group Financial Controller
- Mr. Kasturi Soundararajan – Chief Treasury & Investor Relations
- Mr. Rajesh Lachhani – Head Investor Relations
Key Discussion Points
Power Sector Overview
The power sector experienced a decline in consumption by nearly 1.3% in the quarter, attributed to early monsoons. However, an increase in temperature and humidity is expected to drive higher power demand in August and September. The company also noted significant capacity additions, with some spillover from the previous financial year.
Financial Performance
Tata Power reported an increase in EBITDA and PAT. The generation business continues to be a strong performer, with thermal, gas, and hydro generation meeting targets. The transmission and distribution business also showed steady performance. The company is undertaking significant CAPEX in transmission projects in Mumbai to augment capacity.
Odisha Distribution
The Odisha distribution business has shown significant improvement due to the resolution of billing issues and cleaning of customer data. Meter replacements, including smart meters, have also contributed to this improvement.
Renewable Business
The renewable business has performed well, with the EPC business commissioning a record 652 megawatts in the quarter. The company expects to commission nearly 1,600 megawatts of its own utility-scale renewable projects in the next three quarters. The manufacturing plant has also performed well, producing modules and cells.
EV Charging Business
The EV charging business has shown good performance, driven by higher utilization of public and bus charging infrastructure, and growth in home charging solutions.
Financials and Debt
The company spent Rs. 3,700 crores in CAPEX during the quarter against a full-year plan of Rs. 25,000 crores. Net debt increased by Rs. 2,900 crores to Rs. 47,578 crores, but leverage ratios remained stable. Net debt to underlying EBITDA is 2.93 and net debt to equity is 1.08.
Mundra Plant
Discussions are ongoing for a supplementary PPA for the Mundra plant. The company expects finalization within August, which will allow for continuous operation of all five units. The plant is considered competitive in the merit order, and lower coal prices are expected to keep it attractive.
Module and Cell Business
Tata Power is primarily using its own DCR cells and modules for its projects, including rooftop installations. Pricing for these is at arm's length and negotiated based on market demand and supply. The company is also exploring expansion in module and cell manufacturing, including TOPCon technology.
JV Segment Performance
The underperformance in the JV segment was attributed to lower coal prices in Indonesia.
Future Outlook
The company has a strong pipeline of renewable projects, pumped hydro projects, and hydro plants. The focus is on executing these projects, which are expected to provide competitive returns. The company is also looking at expanding its reach in the rooftop solar market.
Regulatory Matters
Regarding a recent award, the company has 90 days to file an appeal, with a timeline of 6-9 months for a decision from the high court.
