Dear Shareholders,
It is my privilege to present to you the 7th Integrated Annual Report for Tata Power. FY26 has seen your Company weather a changing climate, volatile macroeconomic conditions, and a shifting policy landscape globally and at home.
Rewriting global business scenarios with AI & clean power
The year 2026 began with expectations of steady global growth, soft inflation and easier financial conditions. The year witnessed positive developments including the signing of the landmark India–EU trade agreement and the interim India–US trade deal. However, by early March, the start of the West Asia crisis brought rising concerns about stagflation—falling output coupled with rising inflation.
During the year, global spending focused on AI and resilient supply chains with large scale deployment of AI/ML models across businesses. Due to the rapid growth of data centres, advanced economies saw a resurgence in electricity demand growth for the first time in nearly a decade. Emerging and developing economies, however, contributed most to electricity demand growth in the last year, faced with the twin challenges of managing the effects of climate change and fuelling economic growth.
Existing energy systems also continued their transition towards cleaner, more resilient, and more decentralised models. Governments and industries alike accelerated commitments to decarbonisation, while energy security emerged as a defining theme amid supply-chain volatility and regional disruptions. Globally, more than 800 GW of power capacity was added in 2025, of which more than 85% was made up by renewable energy sources. Global renewable capacity increased by 692 GW in the year, led by solar (511 GW) and wind additions (159 GW). This growth helped global installed renewable energy capacity cross the 5 TW mark, up 15% y-o-y. Renewable sources now make up ~50% of total installed power capacity globally.
Powering a growing economy
For India, which was among the fastest growing nations, these global shifts aligned with national priorities. The country's installed capacity mix is being increasingly driven by renewable sources, with clean and green sources contributing more than 50%. As is the case globally, solar and wind capacities are the two largest contributors to installed Clean and Green capacity. In the last year, India added ~55 GW of power capacity, of which 94% was made up of clean and green sources. Solar made up the bulk of this increase at 44 GW, followed by wind at 6 GW. Together these additions took total installed Clean and Green capacity to 275 GW as on March 2026. Supported by investments in grid infrastructure and storage, these capacities will be key to energy security and meeting India's growing electricity demands.
Tata Power's achievements in FY26
Against this backdrop of volatility and business uncertainty, I am proud to report that your Company has delivered a strong and resilient performance. This performance has been built on a stable foundation laid over the past few years. In the past decade, your Company has reduced consolidated Net Debt/Underlying EBITDA from 6.1x to 3.3x, and at a consolidated Debt/Equity of 1.2x, has an industry leading leverage ratio.
In a volatile global energy context, your Company recognised the importance of Clean and Green energy in ensuring energy security, and over the last five years, has invested ~₹33,000 crore, which amounts to 62% of its overall CAPEX, in clean and green energy solutions. Tata Power's clean and green portfolio now at 17.5 GW (including a pipeline of 9.6 GW) spans 6.5 GW of standalone renewable energy (5.2 GW of solar and 1.3 GW of wind), 5.2 GW of hybrid/FDRE solutions, 2.8 GW of pumped storage projects, 2.6 GW of hydro projects, and 0.4 GW of waste heat recovery–based power generation.
Your Company has also focused on both regulated and non-regulated businesses to ensure a balanced portfolio with a diverse geographical footprint across India.
On a consolidated basis, in FY26, your Company has reported a revenue of ₹63,681 crore, a PAT of ₹5,118 crore, a growth of 7% y-o-y, and an EBITDA of ₹16,090 crore, a growth of 11% y-o-y. On a standalone basis, your Company reported a revenue of ₹12,969 crore, a PAT of ₹1,125 crore, and an EBITDA of ₹4,369 crore in FY26.
We are uniquely positioned to lead the transformation of the energy sector, balancing growth, sustainability and energy security.
Partnership with Druk Green
Your Company built on its partnership with Druk Green in Bhutan for regional energy security by signing an agreement for developing the 1,125 MW Dorjilung Hydropower Project in addition to the ongoing 600 MW Khorlochhu Hydro Project.
Solar Cell & Module Manufacturing
The 4.3 GW solar cell & module manufacturing plant has maintained an industry leading yield of more than 95% across both its cell and module lines. Your Company has ambitious plans to integrate further upstream to wafer and ingot manufacturing.
Large Projects
Tata Power commissioned capacity for FY26 stands at 2,452 MW, comprising 968 MW from in-house projects and 1,484 MW from third-party projects and has won ~800 MW of new renewable projects.
Rooftop Solar
Your Company installed ~2 GW of rooftop solar capacity across the country, crossing a cumulative installation milestone of 4 GW serving 3+ lakh consumers.
Pumped Storage Projects
To serve 24/7 clean energy, your Company has started work on the 1,000 MW Bhivpuri Pumped Storage Project as well.
Against this performance, the Board has recommended a dividend of ₹2.50 per equity share. In addition to this, your Company continues to deliver strong performance across its distribution, energy management, and clean and green solutions verticals.
Enhancing energy security through local sourcing and diversified technology options
Looking ahead
In the next five years, India is expected to add more than 570 TWh to its annual electricity consumption. Peak power demand is already at record highs, and rising AI use along with a warmer climate will require clean, green, and secure sources of energy. This will have to be delivered through round-the-clock renewable energy capacities.
Your Company is focusing on the following key strategic imperatives for resilience for the next phase of growth.
Building resilient supply chains
Energy transition at scale requires domestic manufacturing capabilities and energy secure assets that are immune to macroeconomic shocks and policy uncertainties. Your Company is actively working towards securing its supply chains through localised sourcing and exploring alternate technologies that can ensure energy security.
Executing projects on time
In a sector with high capital intensity and rapid technology evolution, execution discipline is a key strategic advantage. Delivering projects on time and within cost is essential to sustaining returns, maintaining stakeholder confidence, and accelerating the energy transition. Through deployment of data driven tools and careful planning, your Company will continue delivering on its pipeline of utility scale and group captive projects.
Investing in data analytics and cybersecurity
As more decentralised capacities get added to the grid and every facet of business gets integrated with digital tools and capabilities, ensuring cybersecure environments is key for resilient growth. AI tools and capabilities will only exacerbate this requirement further as power grids become smarter and integrate multiple data streams. Your Company is actively transforming its digital footprint to ensure data driven decision making while also planning for future demand growth and demand response mechanisms through industry and academic partnerships.
The future will favour organisations that combine scale with agility, innovation with execution, and purpose with performance. Tata Power is uniquely positioned to lead this journey in the energy sector.
I would like to thank our stakeholders for their continued trust and support. Together, we will build an energy enterprise that not only powers growth, but also powers progress—for India and for the world.
Warm regards,
