Tata Power Ltd Weak 4QFY26 despite boost from one-offs; FY26 capex guidance missed

Research evidence excerpt

Tata Power Ltd Weak 4QFY26 despite boost from one-offs; FY26 capex guidance missed

J P M O R G A N Asia Pacific Equity Research

13 May 2026

Tata Power Ltd Neutral

TTPW.NS, TPWR IN

Weak 4QFY26 despite boost from one-offs; FY26 capex Price (12 May 26):Rs418.40

guidance missed ▲Price Target (Mar-28):Rs423.00 Prior (Mar-27):Rs400.00

Tata Power reported weak 4QFY26 results, with consolidated revenue/PAT at -

13%/-4% y/y and below estimates. The results were weighed down by y/y decline India Industrials, Electric Utilities,

and Infrastructure Sectorsin profits of standalone entity but were helped by regulatory income from Delhi

DISCOMs and deferred taxes. Mundra UMPP has signed a supplemental PPA with Atul Tiwari AC

Gujarat and all 5 units are now operational. Tata Power expects to sign SPPAs with (91-22) 6157-3582

atul.tiwari@jpmorgan.com

the remaining states in a few months. Healthy profitability in Odisha DISCOMs,

solar manufacturing and the rooftop solar business, and a regulatory income gain Rishabh Gupta

(91-22) 6157-3429

in the Delhi DISCOM, cushioned the impact of the Mundra loss in FY26. The key rishabh.x.gupta@jpmorgan.com

positives in the results were a sharp improvement in Odisha DISCOM profitability

Muskan Agarwal

and strong profitability in the solar module and manufacturing businesses. FY26 (91-22) 6157-3226

capex was ~Rs130bn and as a result, Tata Power missed its FY26 capex guidance muskan.x3.agarwal@jpmchase.com

of Rs250bn due to delays in execution. Maintain Neutral with a revised PT of J.P. Morgan India Private Limited, J.P. Morgan

Rs423. Tower,Registration:Santacruz(E),INH000001873,Mumbai (91-22)- 400098,6157-3000.SEBI

Distribution businesses: Odisha improves sharply, Delhi benefiting from