Key Financial Performance

Quarterly Performance (Q1 FY27):

  • Reported Profit After Tax (PAT) of INR 1,401 crore, representing an 11% year-on-year increase.
  • EBITDA reached INR 4,249 crore, an 8% year-on-year increase.
  • Revenue showed an increase, though specific figures were not quantified in the call transcript.
  • This marks the 27th consecutive quarter of growth in both PAT and EBITDA.

Historical Growth (CAGR):

  • Revenue: 8% CAGR over recent years
  • EBITDA: 12% CAGR over recent years
  • PAT: 7% CAGR over recent years

Business Segment Performance

Transmission Business:

  • Showed a revenue increase of 45% CAGR, 19% in EBITDA CAGR, and 27% in PAT CAGR.
  • Mumbai Transmission specifically showed 7% revenue CAGR, 11% EBITDA CAGR, and 21% PAT CAGR.
  • INR 10,000 crore investment pipeline in Mumbai transmission over next 5 years on regulated basis.

Distribution Business:

  • Consistent performance with growth in revenue, EBITDA, and PAT.
  • Q1 typically challenging due to summer billing and collection issues.

Renewable Cluster:

  • Overall revenue increased 22%, EBITDA by 23%, and PAT by 37%.
  • Generation business specifically: 11% revenue growth, 10% EBITDA growth, 2% PAT growth.
  • Current capacity at 6.7 GW with plans to add 2.5-2.7 GW in FY27, crossing 9 GW by year-end.
  • 200 MW already commissioned, another 500 MW to be commissioned in coming weeks.

Rooftop Business:

  • Revenue grew nearly 100% year-on-year.
  • 4-year CAGR: 58% for revenue, 68% for EBITDA, 84% for PAT.
  • Plans to grow 60-70% this year.
  • Now offering battery storage solutions for residential and industrial customers.

Manufacturing (TP Solar):

  • Cell and module plants operating at full capacity.
  • Module production crossed 1,000 MW in Q1 for first time.
  • Record PAT achieved through yield efficiency improvements and cost optimization.

Project Updates

Mundra Plant:

  • Supplementary PPA concluded with Gujarat.
  • Plant operating under Section 11 for scheduling purposes.
  • Charging procurers as per SPPA tariff (cost-reflective without ROE margin).
  • Advanced stage of approval from 3 states expected in August, fourth state in September.
  • All procurers taking full capacity with confidence in plant's long-term sustainability.
  • Expected to run continuously until 2038.

Pumped Hydro Projects:

  • Good progress on construction.
  • First unit (330 MW) expected commissioning beginning of calendar year 2029.
  • Subsequent units to be commissioned with 2-month gaps.
  • Won SECI bid with attractive tariff for one unit.
  • Discussions with Tata Steel and other procurers for remaining units.
  • 1,800 MW Shirwata PSP work to start later this year pending approvals.

Bhutan Hydro Projects:

  • PPA signed for 600 MW Khorlochhu project with UPPCL with regulatory approval.
  • Returns better than planned expectations.
  • Expected operational in calendar year 2030.
  • 1,125 MW Dorjilung project financial closure expected in next 2 months with PFC, IFC and other lenders.
  • World Bank financing involved.

Capital Expenditure

Q1 FY27 Capex: INR 5,300 crore spent

FY27 Planned Capex: INR 25,000 crore

  • 50% allocated to renewable projects
  • Balance divided between FGD projects, transmission, and distribution projects
  • All investments have clear line of sight

Financial Position

Leverage Ratios:

  • Net debt to underlying EBITDA: 3.41
  • Net debt to equity: 1.25
  • Within company's investment guardrails

Operational Highlights

Power Demand Context:

  • Strong power demand growth of 8.5% in Q1
  • May: 11% growth, June: 9.8% growth
  • July demand consistently 260-270 GW range
  • Delayed and inadequate rains extending summer cooling requirements
  • Industrial growth also contributing to increased demand

Curtailment Impact:

  • Industry-wide curtailment approximately 5%
  • Expected to settle in coming quarters as transmission infrastructure improves

Other Business Updates

Tata Projects:

  • Final stages of closing legacy projects (approximately 10% remaining)
  • Cost correction impacting current results
  • Expected improvement after one more quarter
  • Strong pipeline of new projects with global marquee clients

Coal Business:

  • Indonesian coal prices increased 5-7%
  • Expected further 5% increase over next 9 months
  • No major impact from new Indonesian export regulations
  • KPC compliant with domestic supply obligations

Solar EPC:

  • Discontinued third-party EPC focus
  • Repurposing workforce to in-house development
  • Wrapping up remaining work with some losses booked
  • No new order book for third-party EPC

Nuclear Opportunities:

  • Preliminary work on land, geotechnical studies, water availability
  • Waiting for government rules notification before firm plans

Management Commentary

The management emphasized the company's consistent performance across business segments and strong foundation for future growth. They highlighted the diversified business model contributing to sustained profitability and the significant pipeline of projects across transmission, renewables, and new energy solutions. The company remains focused on calibrated growth within established financial guardrails while pursuing new opportunities in emerging energy sectors.