Tata Power has laid out ambitious financial targets for the end of the decade, aiming to nearly double net profit and lift revenue by more than half by FY2030, chairman N Chandrasekaran told shareholders at the annual general meeting on Tuesday. The 116-year-old utility is targeting Rs 10,000 crore in net earnings and Rs 1 lakh crore in revenue by the end of the decade, according to a report by Business Today's Reeba Zachariah.
Financial Targets and Strategic Direction
The targets represent a significant leap from current levels. Tata Power's net profit stood at around Rs 5,000 crore in FY26 (implied by the doubling target), while revenue was approximately Rs 66,000 crore (implied by the more-than-half increase). The company did not disclose exact base-year figures in the source. The growth will be fueled by a capital-intensive push into clean energy and grid expansion.
| Metric | FY30 Target | Implied Growth vs Current |
|---|---|---|
| Net Profit | Rs 10,000 crore | ~2x |
| Revenue | Rs 1 lakh crore | >50% increase |
| Generation Capacity | 30 GW | From 26 GW |
| Transmission Network | >10,000 circuit km | From ~7,000 circuit km |
Capacity Expansion and Clean Energy Push
Tata Power has already crossed 26 GW of generation capacity, of which 66% is green energy, and expects to reach 30 GW by FY30. Key projects include:
- Hydro power in Bhutan: Projects will come online by FY30.
- Nuclear energy: The company is exploring nuclear energy, including small modular reactors.
- Solar manufacturing: It plans to set up a 10 GW ingots and wafers project in Odisha — intermediate components used in solar cell manufacturing.
- Transmission expansion: The network will grow to more than 10,000 circuit kilometres from about 7,000 currently.
Capital Expenditure Plans
The growth plans will require heavy spending. Tata Power will invest about Rs 25,000 crore annually in capital expenditure over the next three years, Chandrasekaran said. The chairman also stated that the company remains open to expanding its distribution footprint wherever opportunities arise.
Regulatory Setback in Karnataka
Despite the broad optimism, Tata Power faces a regulatory hurdle. The company withdrew its application for a parallel electricity distribution licence in Karnataka after opposition from the state government and unions at state-run electricity supply companies. The source did not specify whether the company plans to reapply or pursue alternative approaches.
Outlook for Investors and Analysts
The targets signal Tata Power's confidence in India's energy transition and its own execution capability. With a strong balance sheet and a diversified clean energy portfolio, the company is positioning itself as a key player in the renewable and nuclear sectors. However, the Karnataka episode highlights the regulatory risks that even established players face in India's power distribution segment. Investors will watch for quarterly updates on capex deployment and project milestones over the next three years.
The next milestone will be the Q1 FY27 earnings release, which will provide the first data point on progress toward these targets.
Sources:
