Tata Power Muted 4Q Earnings Growth

Tata Power's 4Q earnings missed estimates by 13% as weak renewable generation and JV performance offset growth in rooftop solar and distribution.

Key Takeaways

• 1.4Q PAT was 13% below estimates due to lower renewables generation and weaker contributions from joint ventures.
• 2.Mundra power plant resumed operations on April 1, 2026, after a nine-month shutdown, following a new PPA with Gujarat.
• 3.Capex execution fell significantly short of guidance (Rs 130bn vs Rs 250bn) due to transmission and right-of-way issues.

Table of Contents

• 4Q below estimates on RE generation and JV contribution
• Rooftop solar, upstream manufacturing and distribution remain key positives in the quarter
• RE curtailment, transmission bottlenecks and capex slippage were key concerns
• Mundra plant resumes operation; supplementary PPA signed with Gujarat
• Earnings and valuation
• Investment thesis - TPWR
• Valuation methodology and risks - TPWR
• Disclosure Appendix
• Price target and rating history chart(s)
• Target price history table(s)
• Regulatory disclosures
• General disclosures

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