Tata Power FY26 Results: Consolidated Net Profit Rises to ₹5,117.56 Crore; Board Recommends ₹2.50 Dividend

The Tata Power Company Limited announced its audited financial results for the quarter and full year ended March 31, 2026, at a Board of Directors meeting held on May 12, 2026. On a consolidated basis, the company reported a net profit of ₹5,117.56 crore for FY26, marking an improvement from ₹4,775.37 crore recorded in FY25. The Board also recommended a final dividend of ₹2.50 per equity share of ₹1 each (at 250%) for FY26, subject to approval by shareholders at the forthcoming 107th Annual General Meeting scheduled for July 7, 2026.

Consolidated Financial Performance

Tata Power's consolidated total income for FY26 stood at ₹64,171.66 crore, compared to ₹66,992.17 crore in FY25. Revenue from operations was ₹62,428.59 crore for FY26 versus ₹65,478.24 crore in FY25. Total expenses for the year were ₹59,401.41 crore, down from ₹60,367.67 crore in the prior year. The profit before tax for FY26 was ₹6,635.99 crore, compared to ₹6,319.62 crore in FY25. Total comprehensive income for FY26 was ₹5,717.62 crore, against ₹4,910.21 crore in FY25.

The following table summarises the key consolidated financial results:

Metric: Q4 FY26 (₹ crore) Q3 FY26 (₹ crore) Q4 FY25 (₹ crore) FY26 (₹ crore) FY25 (₹ crore) Revenue from Operations: 14,900.20 13,948.41 17,095.88 62,428.59 65,478.24 Total Income: 15,455.48 14,269.08 17,446.95 64,171.66 66,992.17 Total Expenses: 14,876.50 13,465.06 16,179.77 59,401.41 60,367.67 Profit Before Tax: 1,797.00 1,539.63 1,599.69 6,635.99 6,319.62 Net Profit: 1,415.52 1,194.33 1,306.09 5,117.56 4,775.37 Total Comprehensive Income: 1,593.23 1,046.00 1,246.95 5,717.62 4,910.21

Net profit attributable to owners of the company for FY26 was ₹3,747.19 crore, compared to ₹3,971.00 crore in FY25. Non-controlling interests accounted for ₹1,370.37 crore of net profit in FY26, up from ₹804.37 crore in FY25. Earnings per equity share (of ₹1 each) after net movement in regulatory deferral balances stood at ₹11.72 (basic) and ₹11.71 (diluted) for FY26, versus ₹12.42 (basic) and ₹12.41 (diluted) in FY25.

Consolidated Segment Performance

The Transmission and Distribution segment was the largest contributor to consolidated segment results for FY26 at ₹4,398.59 crore, followed by Renewables at ₹4,340.93 crore and Thermal & Hydro at ₹1,964.61 crore. The Renewables segment recorded notable growth in segment revenue and net movement in regulatory deferral balances, rising to ₹15,027.82 crore in FY26 from ₹9,876.36 crore in FY25. Thermal & Hydro segment revenue declined to ₹11,635.93 crore in FY26 from ₹19,739.07 crore in FY25.

Segment: FY26 Revenue (₹ crore) FY25 Revenue (₹ crore) FY26 Results (₹ crore) FY25 Results (₹ crore) Thermal & Hydro: 11,635.93 19,739.07 1,964.61 3,813.41 Renewables: 15,027.82 9,876.36 4,340.93 2,880.68 Transmission & Distribution: 41,338.59 39,120.52 4,398.59 3,206.49 Others: 431.79 431.04 (104.72) (106.59)

Standalone Financial Performance

On a standalone basis, Tata Power reported net profit of ₹1,124.66 crore for FY26, compared to ₹3,132.68 crore in FY25. Standalone total income for FY26 was ₹15,067.69 crore, against ₹24,848.91 crore in FY25. Revenue from operations on a standalone basis stood at ₹13,225.50 crore in FY26, compared to ₹22,359.44 crore in FY25. The significant decline in standalone revenue and profit is primarily attributable to the temporary suspension of the Mundra Power Plant effective July 3, 2025, for overhauling activities. On March 23, 2026, the company executed a supplementary power purchase agreement (SPPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) with effect from April 1, 2025, with revised tariff and power supply framework, and the Ministry of Power issued fresh directions permitting plant operations from April 1, 2026 to June 30, 2026 under the SPPA terms.

Metric: FY26 Standalone (₹ crore) FY25 Standalone (₹ crore) Revenue from Operations: 13,225.50 22,359.44 Total Income: 15,067.69 24,848.91 Total Expenses: 13,632.56 20,162.32 Profit Before Tax: 1,178.39 3,615.32 Net Profit: 1,124.66 3,132.68

Dividend and Key Corporate Developments

The Board recommended a final dividend of ₹2.50 per equity share of ₹1 each (at 250%) for FY26. The record date for dividend payment has been fixed as June 23, 2026, and the dividend, if approved at the AGM, will be paid on or after July 10, 2026. The paid-up equity share capital of the company stands at ₹319.56 crore.

During the quarter, Tata Power entered into a joint venture with Druk Green Power Corporation (DGPC) of Bhutan for the development of the 1,125 MW Dorjilung Hydro Power Project, acquiring a 40% equity stake in Dorjilung Hydro Power Limited (DHPL). The company invested ₹50 crore as the first tranche out of a total proposed investment of approximately ₹1,572 crore, subscribing to 50,00,000 equity shares of Nu. 100 each, representing 40% of the issued and paid-up equity share capital of DHPL.

The company also recognised an additional expense of ₹74 crore (consolidated) towards gratuity and leave encashment liabilities pursuant to the Government of India notifying four Labour Codes on November 21, 2025. Of this, ₹62 crore pertains to the regulated business and has been considered as a pass-through in tariff. On a standalone basis, an additional expense of ₹15 crore was recognised, of which ₹10 crore pertains to the regulated business.

Arbitration Matter and Key Risks

The company disclosed a significant pending legal matter. The Singapore International Arbitration Centre (SIAC) published a quantum award on July 1, 2025 and a final award on August 27, 2025, directing Tata Power to pay Kleros Capital Partners Limited damages of USD 490,320,000 with simple interest of 5.33% from November 30, 2020, and costs of SGD 11,341,963.46 with simple interest of 5.33% from July 1, 2025. Based on legal counsel advice, the company filed an appeal on October 23, 2025 with the Singapore International Commercial Court (SICC) for setting aside the awards. The company does not foresee any affirmative payment obligation, and accordingly, no provision has been recorded in the financial results for the quarter and year ended March 31, 2026. The hearings on the case are completed and the order is reserved. The statutory auditors have issued an emphasis of matter in this regard, though their opinion is not modified.

During the quarter, the company also recognised an impairment provision of ₹94 crore as an exceptional item on its investment in Adjaristsqali Netherlands B.V. (ABV), a joint venture held for sale. Additionally, a deferred tax asset of ₹250 crore was recognised on previously unrecognised business losses during the quarter, based on reasonable certainty of generating taxable profits.

Tata Power and Bhutan's Druk Green Power Corporation Limited (DGPC) have expanded their clean energy collaboration through an amendment to their existing Memorandum of Understanding (MoU), adding the 404 MW Nyera Amari I & II Integrated Hydropower Project to their joint development pipeline. The amendment was signed on May 8, 2026, in the presence of Bhutan's Prime Minister Lyonchhen Tshering Tobgay, and was formally executed by Dr. Praveer Sinha, CEO & Managing Director, Tata Power, and Chhewang Rinzin, Managing Director, DGPC. Also present at the ceremony were Ms. Anjali Pandey, President – Generation Business, Tata Power, and senior officials from DGPC and DHPC.

Expanded Hydropower Portfolio

With the addition of the Nyera Amari I & II project, the total identified hydropower capacity under the Tata Power–DGPC partnership has increased to 5,033 MW from 4,500 MW under the original MoU dated November 19, 2024. The collaboration is now described as the largest partnership between two leading power companies of India and Bhutan in Asia's clean energy sector. The following table outlines the full project portfolio under the partnership:

Project: Capacity Khorlochhu 600 MW Dorjilung 1,125 MW Gongri Reservoir with Jeri Pumped Storage 2,540 MW (combined) Chamkharchhu IV 364 MW Nyera Amari I & II (newly added) 404 MW Total Identified Hydropower Capacity 5,033 MW

In addition to hydropower, Tata Power and DGPC also aim to jointly develop 500 MW of solar PV projects in Bhutan.

Project Progress and Strategic Significance

Work has already commenced on the Khorlochhu (600 MW) and Dorjilung (1,125 MW) hydropower projects, together accounting for approximately 35% of the committed portfolio of 5 GW. The projects will be developed with mutually agreed equity participation, and both companies will continue to evaluate and add new hydropower opportunities over time. This expansion is aligned with Bhutan's vision to take its overall generation capacity to 25,000 MW by 2040, supporting the country's energy security and regional energy integration goals.

Leadership Perspectives

Dr. Praveer Sinha, CEO & Managing Director, Tata Power, stated, "This milestone of expanding our joint hydropower portfolio to over 5,000 MW with DGPC marks a significant step in strengthening our clean energy partnership in Bhutan. The addition of the Nyera Amari project reflects the scale, ambition, and long-term commitment of this collaboration. This strategic partnership is not only pivotal for advancing Bhutan's economic growth by unlocking its vast hydropower potential but also plays a critical role in enhancing regional energy security. For India, especially during peak summer months when demand continues to reach record highs, such partnerships ensure access to reliable, clean power."

Dasho Chhewang Rinzin, MD, DGPC, said, "The expansion of our partnership with Tata Power to over 5000 MW hydropower portfolio marks a defining milestone in Bhutan's clean energy journey. The inclusion of the 404 MW Nyera Amari I & II Integrated Hydropower Project, alongside key projects such as Khorlochhu (600 MW), Dorjilung (1,125 MW), Gongri Reservoir with Jeri Pumped Storage (2,540 MW), and Chamkharchhu IV (364 MW), reflects the scale and ambition of this collaboration. This partnership will play a pivotal role in unlocking Bhutan's vast hydropower potential, supporting economic growth, and strengthening regional energy security, while reinforcing Bhutan's position as a leading clean energy nation."

Long-Standing Partnership and Company Profiles

Tata Power's association with DGPC spans over a decade, beginning with the 126 MW Dagachhu Hydropower Project—Bhutan's first public-private hydropower partnership, commissioned in 2008. Both companies have a long-standing relationship, having worked together for over 15 years. The original strategic partnership between Tata Power and DGPC was entered on November 19, 2024, with the support of the Royal Government of Bhutan and the Government of India.

Tata Power owns a diversified portfolio of 16.3 GW, spanning renewable and conventional energy generation, transmission, distribution, trading, storage solutions, and solar cell and module manufacturing. The company has 7.5 GW of clean energy generation, constituting 46% of its total capacity, and serves approximately 13 million customers nationwide. DGPC, a subsidiary of Druk Holding and Investments Limited, currently holds a portfolio of 3,473 MW of hydro capacity in Bhutan and is envisioned to achieve 15,000 MW hydro capacity and 5,000 MW solar capacity within the next 10 years.

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