Synopsis: Tata Power announced a Rs. 1 trillion FY30 capex plan for transmission projects, with major investments in clean energy and transmission, including HVDC projects, capacity expansion, and new growth avenues, strengthening its long-term infrastructure and renewables-led strategy.
During Monday’s trading session, shares of a leading integrated power company and a part of the Tata Group are in focus on the stock exchanges, after the company announced an expected capex of Rs. 1 trillion for transmission projects.
At 12:35 p.m., shares of Tata Power Company Limited were trading at Rs. 381.05 on BSE, as against its previous closing price of Rs. 381.9, with a market cap of Rs. 1.21 lakh crores. The stock has delivered negative returns of more than 10 percent in one year, and has fallen by around 3 percent in the one month.
Management Guidance
On 15th December, Tata Power outlined an ambitious capacity expansion roadmap targeting FY30 through an updated investor presentation. The company aims to achieve more than 30 GW of total operational capacity by FY30, of which over 20 GW will comprise clean and green energy.
In addition, Tata Power has a pipeline of over 5 GW under development. Currently, the company has around 16 GW of operational capacity, with around 7.1 GW already classified as clean and green, while about 10.4 GW is under construction. Its clean energy portfolio spans wind, solar, hydro, pumped storage (PSP), hybrid, and complex FDR/FDRE projects, with over 97 percent of the green pipeline tied to long-term offtake agreements.
The company has outlined a capex plan of ~Rs. 1,25,000 crores for the period between FY26 and FY30. Annual capex is expected to scale up to around Rs. 25,000 crore each year from FY26 onwards, reflecting a sustained investment cycle. Nearly 65 percent of the total capex during this period is earmarked for clean and green energy initiatives.
Renewables are accounting for about 53 percent of the spend, followed by transmission and distribution at 31 percent and pumped storage projects at 11 percent, for the capex. Smaller allocations are planned for thermal, equity investments, hydropower, and coal and shipping businesses.
Tata Power has outlined a robust transmission expansion plan comprising around 2,500 circuit kilometres (ckm) of tariff-based competitive bidding (TBCB) projects scheduled for commissioning between FY26 and FY28. These projects are spread across multiple subsidiaries, including Gopalpur Transmission, Paradeep Transmission, Bikaner Transmission, Jalpura Khurja Power Transmission, South East U.P. Power Transmission Company, and the Northern Region System Strengthening Scheme, with commissioning timelines ranging from December 2025 to Q3 FY28.
The company currently operates around 4,736 ckm of transmission lines and has an additional 2,349 ckm under construction. By FY30, Tata Power aspires to expand its transmission network to over 10,000 ckm. The cumulative capex for the ongoing and upcoming transmission projects is expected to exceed Rs. 12,000 crores.
The company expects a significant pipeline of HVDC transmission projects by 2030, aligned with India’s large-scale renewable energy evacuation and inter-regional connectivity requirements. Key projects under consideration include HVDC systems for evacuating 6 GW of RE power from the Barmer-II solar zone in Rajasthan and the Khavda region in Gujarat, both targeted for commissioning in FY27.
Additional projects include connectivity under the GNA framework at Ramgarh-II in FY28, the Paradeep-Andaman HVDC link, and the India-Sri Lanka HVDC link (India portion), both expected by FY30. These projects span multiple geographies, including Rajasthan, Maharashtra, Gujarat, Odisha, Tamil Nadu, and the Andaman & Nicobar Islands.
The total capex anticipated across these HVDC projects exceeds Rs. 1 lakh crore, underscoring the company’s long-term growth opportunity in high-voltage transmission infrastructure.
Tata Power is developing new revenue streams through its Cooling as a Service (CaaS) initiative, positioning it as a long-term growth opportunity. The company estimates an investment potential of ~Rs. 3,50,000 crores to set up around 300 district cooling plants, which could deliver annual energy savings of nearly 7,850 GWh and reduce power demand by about 6,100 MW. Under its Vision 2030, Tata Power targets a cooling capacity of 0.5 million TR (Ton of Refrigeration) and an order book of around Rs. 10,000 crores. Key focus areas include smart manufacturing, commercial buildings, data centres, and smart cities/SEZs.
Financials & More:
Tata Power reported a marginal decline in revenue from operations, experiencing a year-on-year decrease of around 1 percent, from Rs. 15,698 crores in Q2 FY25 to Rs. 15,545 crores in Q2 FY26.
In contrast, the company’s net profit increased during the same period from Rs. 1,093 crores to Rs. 1,245 crores, representing a rise of nearly 14 percent YoY.
The Tata Power Company Limited is primarily involved in the business of the generation, transmission and distribution of electricity. It has a presence in all the segments of the power sector, viz. fuel security and logistics, generation (thermal, hydro, solar and wind), transmission, distribution and trading.
The company’s portfolio spans the entire power value chain, from renewable and conventional energy generation to transmission, distribution, trading, storage solutions, and solar cell and module manufacturing.
Written by Shivani Singh
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