Upholding our promise of powering a billion dreams, lifelong
To all our shareholders, customers, colleagues and partners,
It is a pleasure to write to you after a year that has seen Tata Power grow through careful financial calibration, disciplined operational execution and consistent customer service excellence in spite of turbulent macroeconomic conditions. In the past year we have delivered a PAT before exceptional items of ₹5,212 crore and an EBITDA of ₹16,090 crore, both benchmarks for Tata Power.
While electricity demand was muted in 2025 due to the impact of early and extended monsoon, climate change is here to stay. The World Meteorological Organisation (WMO) has issued warnings about a record high energy imbalance in 2025 as the Earth has absorbed more heat in the last 65 years than it could release. With the El Nino effect predicted to return for 2026, this year is anticipated to be hotter with higher cooling demands. As the world shifts to an electricity-based economy, the International Energy Agency (IEA) projects that electricity consumption will outpace overall energy demand by more than 2.5 times in the coming years. Similar trends are already visible in India. Electricity demand grew marginally y-o-y. However, peak demand reached 270.8 GW in May 2026, driven by intense early-summer heatwaves.
Negotiating a changing climate, a rapidly growing economy, and increasing power demands will require India to prioritise energy security through clean energy solutions.
India's strides towards energy security
In that sense, FY26 has been a good year for India's progress towards energy security targets. Annual renewable energy additions (excluding hydro capacities) grew by ~88% y-o-y, with over 50 GW of projects commissioned. India's cumulative installed capacity has crossed the 500 GW mark, with non-carbon fuel-based sources contributing more than 50% of the capacity mix. The largest part of this increase is from solar capacities that have grown by ~40% y-o-y to ~150 GW.
In FY26, India witnessed nearly double the capacity addition compared to last year and the rapid growth has been accompanied by commensurate manufacturing capacity addition. In 2025 alone, India added 100+ GW of module manufacturing capacity and ~10 GW of cell manufacturing capacity. This has been primarily enabled by the large utility scale project pipeline, Pradhan Mantri Surya Ghar Yojana (PMSGY) for households, installations under PM KUSUM and Approved List of Module Manufacturers (ALMM) mandates. Over 8 GW of rooftop solar was added in FY26, a jump of ~50% y-o-y, with the residential segment accounting for over 76% of this new capacity. Complementing this growth has been the surge in EV adoption, which jumped to ~24 lakh in FY26.
With increasing decentralised capacities on the grid, countering intermittency and ensuring grid stability remain key. In 2025, India added 0.5 GWh of Battery Energy Storage System (BESS) capacity, up 26% y-o-y. The Government of India estimates energy storage requirements for FY32 at 410 GWh with Pumped Storage Projects making up ~42% of this capacity. In 2025, Parliament has also passed the SHANTI Bill, which is set to overhaul India's nuclear energy architecture and enable calibrated opening of the sector for private participation and support the national target of 100 GW of nuclear power by 2047. These capacities will be critical for a stable grid that can support the rapid scaling of AI data centres in the country. Projected to grow 30% y-o-y in 2026, data centres will require all these technologies to come together, along with investments in grid expansion and modernisation to usher India into its next phase of growth.
Tata Power: Leading the energy transition in the country
As one of the largest vertically integrated power companies of the country, Tata Power is shaping each facet of this transition. In the past year, our generation capacity has expanded to over 26 GW (including ~10 GW of clean and green capacities in pipeline) of which clean and green sources will account for 100% capacity addition. In FY26, we commissioned ~2,452 MW of RE projects across both in-house and third-party capacities, up 26% y-o-y. Operationally, we maintained near-perfect (close to 100%) availability across our hydro, wind, and solar assets, and around 90% for thermal assets (excluding Mundra).
Our development of the 1,000 MW Bhivpuri Pumped Storage Project (Maharashtra) and 600 MW Hydropower Project in Khorlochhu (Bhutan) is well underway, and both projects remain on track for commissioning by CY 2029 and CY 2030, respectively. As part of our broader commitment to energy security in the region, we have also commenced pre-construction work on the 1,125 MW Dorjilung Hydropower Project, which is set to be the second largest hydro project in Bhutan.
Our transmission business commissioned 929 ckm of transmission lines and won one more Tariff Based Competitive Bid (TBCB) project in the last year. On the distribution front, our Odisha DISCOMs reduced AT&C losses by 2% from 17.5% to 15.5%. Mumbai and Delhi DISCOMs maintained their track record of reliable, uninterrupted power at AT&C losses of 0.9% and 5.4%, respectively.
Our state-of-the-art 4.3 GW solar cell and module plant at Tirunelveli has now been fully ramped up and has been operating at industry-leading yields of over 95%. The plant produced 3.8+ GW of modules and 3.7+ GW of cells in FY26, and has developed a nearly 50% localised supply chain, highlighting our commitment to sustainable and inclusive growth.
This year reflects our sustained focus on creating long-term value through disciplined growth, operational excellence and strategic partnerships. The addition of new clean energy assets, steady progress in TBCB projects, continued improvement in Distribution businesses in Odisha, Delhi and Mumbai, and strengthening of cross-border regional energy collaboration, all underscore our commitment to building a more resilient energy future."
From power plants to powering homes and offices through smart solutions!
However, as we power these national shifts towards energy security, we have also consciously maintained our focus on enabling green journeys for individuals and Commercial & Industrial (C&I) clients. Last year, we installed two solar rooftops every minute across India, crossing 4.8 GWp of total installations and serving over 3.7 lakh residential and C&I consumers.
In order to better cater to the demand of consumers in Tier 2 and Tier 3 cities, we launched MySine batteries, developed in partnership with TACO, providing a storage solution along with rooftop solar. Our EV charging business, the largest network in India, crossed the milestone of 2 lakh home charger installations, 7,000+ public, semi-public and bus charging points across 700+ cities pan-India.
Levers for building a future-ready enterprise
Maintaining financial fitness
- Maintain target leverage and financial guardrails
- Improvement in asset and people productivity
Becoming a sustainability benchmark
- Expand clean and green energy capacity
- Lead in water and waste management
- Build a diverse, future-ready workforce
- Promote responsible energy consumption
- Enable customer transition to sustainable energy
- Support value chain sustainability
Delivering growth through customer-centric energy solutions
- Expand firm and round-the-clock green offerings through Renewable Energy, Pumped Storage Projects, and Battery Energy Storage System solutions
- Scale rooftop solar and group captive capacities
- Expand RE with flexible dispatch solutions
- Strengthen transmission and storage for RE integration
- Grow distribution customer base
- Incubate new-age energy ventures
- Enhance consumer value via digital platforms including Energy-as-a-Service offering
- Scale distributed energy storage solutions to enhance RE integration
Creating shareholder value
- Maximise shareholder return
- Optimise capital allocation
With our Mundra plant having resumed operations, despite the challenging context, the year has ended on a positive note. Our continuing focus on innovation has helped us remain ahead of the curve even as the sector continues to evolve. In FY26, we launched the Energy Insights and Innovation Lab with the London School of Economics and Political Science (LSE) and International Growth Centre (IGC) to enhance grid resilience and demand side management. We also collaborated with Harvard Business School on a case study highlighting our role in India's energy transition.
Lighting up smiles…
As we look to the coming year with renewed vigour, I am conscious of the founding principle of the Company: “Clean, cheap, and abundant power is one of the basic ingredients for the economic progress of a city, state or country.” This ethos continues to form the backbone of our growth which is intrinsically tied to the well-being of our stakeholders and our business model is built to ensure that as we grow, our communities prosper with us.
Our CSR programmes, through the ‘3 Es’ model – Education, Employability & Employment and Entrepreneurship – deliver meaningful social outcomes at scale. Initiatives ranging from Pay Autention for autism awareness to Adhikaar for improving women's access to various government programmes ensure a just and more equitable future. Meanwhile, our skill development arm, TPSDI, works towards creating a pipeline of green-skilled workers to meet the present and future industry needs.
The environment around us is one of the most critical stakeholders for our operations. In FY26, we have scaled Gaja Sanrakshana, our elephant conservation programme in Odisha, and have entered into meaningful partnerships with the Tata Group companies and also with entities like ICICI Foundation for large scale reforestation drives.
…Lifelong!
Looking ahead, I remain optimistic about Tata Power's trajectory as India's energy transition gathers pace. Our financial prudence, operational excellence, targeted CAPEX and integrated structure equip us to enable this shift, empowering customers to embrace cleaner and more sustainable lifestyles.
In the current geopolitical climate, it is clear that energy security is the need of the hour. This is why our shift to clean and green energy solutions ensures that India's power requirements are never compromised. For over 110 years, we have demonstrated with credible leadership, that ‘Sustainable is Attainable’.
As we continue our journey to make energy security and the energy transition a concrete reality for India, we thank you for your continued support and belief in Tata Power. Your support is what allows us to strive for a higher ideal of performance.
As always, we will continue to work to power your dreams.
Best regards,