Tata Power (TTPW.BO): Steady Quarter; Capex Tracking in-line with Targets

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Tata Power (TTPW.BO): Steady Quarter; Capex Tracking in-line with Targets

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28 Jul 2026 07:29:10 ET │ 12 pages

Tata Power (TTPW.BO)

Steady Quarter; Capex Tracking in-line with Targets

CITI'S TAKE

Buy Tata Power reported a steady start to FY27E with 1Q

Revenue/EBITDA/PAT at Rs191bn/Rs39bn/12bn up 6%/8%/11% YoY and Price (27 Jul 26 15:30) Rs377.25

in line with BBG consensus. Capex is on track for achieving FY27E Target price Rs525.00

guidance with encouraging management guidance on near term capacity Expected share price return 39.2%

commissioning. The quarter had fairly broad based PAT growth across Expected dividend yield 0.8%

clusters. BS remains strong in the sector context and provides headroom Expected total return 40.0%

for accelerating medium term growth. Near-term monitorables include

Market Cap Rs1,205,442M pickup in collections at distribution companies, further SPPA signing at

US$12,568M Mundra and execution of the capacity commissioning schedule.

1Q Snapshot — Thermal generation, coal and hydro cluster PAT at Rs6.3bn grew

26%YoY, renewables cluster PAT at Rs6bn grew 15%YoY while T&D PAT at Rs4.9bn Mohit PandeyAC

grew 11% YoY. On the other hand, the 'Others' cluster led by Tata Projects saw +91-22-6175-9734

widening of losses to Rs3.3bn v/s Rs2.1bn dragging down overall PAT mohit.pandey@citi.com

growth. Leverage remains comfortable, with net debt-to-underlying EBITDA at 3.41x

and net debt-to-equity at 1.25x. Anusha Madireddy

+91-22-6175-9866

Encouraging progress on capex — Tata Power incurred capex of Rs54bn in 1QFY27, anusha.madireddy@citi.com

marking a healthy start against its Rs250bn full-year plan (had incurred Rs130bn in

entire FY26). FY27 capex is spread across pumped storage, renewables, hydro,

transmission and distribution projects.