Tata Power Plans Major Capex Investment and Strategic Expansions

Tata Power plans to invest Rs 25,000 crore in FY26, focusing on renewables and bidding for Uttar Pradesh discoms. The company reported a 25% rise in net profit in FY25 and aims to expand its capacity significantly. Legal changes are awaited for nuclear projects to proceed.

Tata Power is gearing up for a significant capital investment of Rs 25,000 crore in the fiscal year 2026, targeting an expansion across renewables, generation, transmission, and distribution sectors. This ambitious move was outlined by CEO Praveer Sinha in a recent post-earnings call, signaling the company's strategic direction for the coming year.

During the call, Sinha highlighted that half of the capex would be directed towards renewable energy, with the remainder split between generation, which includes pumped hydro, and transmission and distribution. Although the company had initially set a capex target of Rs 20,000 crore for FY25, it achieved over Rs 16,000 crore, attributing some delays to transmission and renewable projects.

Besides the capex plans, Tata Power is keen on expanding through strategic acquisitions, notably the two power distribution companies being privatized in Uttar Pradesh. Additionally, the company is preparing for potential ventures into nuclear projects pending legal amendments. As Tata Power navigates these opportunities, its focus remains on serving the domestic market under initiatives like PM Surya Ghar Yojana.

(With inputs from agencies.)