Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Tata Power Company Limited (NSE: TATAPOWER) Q4 2026 Earnings Call dated May. 12, 2026
Corporate Participants:
Praveer Sinha — Chief Executive Officer & Managing Director
Sanjeev Churiwala — Chief Financial Officer
Analysts:
Sumit Kishore — Analyst
Anuj Upadhyay — Analyst
Satyadeep Jain — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Tata Power Q4 and full year FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Dr. Praveer Sinha CEO and Managing Director of Tata Power for his opening remarks.
Thank you. And over to you sir.
Praveer Sinha — Chief Executive Officer & Managing Director
Good evening everyone and thank you for joining. For this call. I have with me my colleagues Sandeep Churiwala, the CFO, K.V. Patel, the group Financial Controller Kathuri Chief treasury and Investor Relations, Anshul and other colleagues from Finance and Corporate Communication. Before I share with you some of the major highlights of the performance by the end of the year let me just quickly share with you our understanding of the power sector in the last few months. And as of now we saw in the last quarter that the increase in demand was very modest of 2%.
And we are now seeing from April onwards that the demand has gone up by 5 to 6%. And the peak power also has touched 256 gigawatts. We do expect that in next one to two months this will cross about 270 gigawatts. And this is because of the heat wave that we see across the country. And also because of the prediction that we will have a severe impact because of El Nino. So we do expect that the demand will increase both in terms of peaking requirement and energy requirement. And we are already seeing in many places Mumbai has crossed 4,600.
Delhi is more than 6,500. And so also many other places we are finding that the demand is going up. Fortunately in our country our power systems are very stable. The increased demand is met mainly by our coal based plants and hydro plants. And also renewable solar and wind is supporting them. During solar hours and wind hours we have also seen that for our imported coal based plants there have been no impact per se. There is adequate supply of coal that is coming. There is of course a small increase in the prices of coal and shipping.
But those are very very nominal increases that have been seen in last two months coming to the financial performance I think has posted a very strong financial and operational performance in FY26. This is in spite of the fact that Munza did not operate for nine months and we have for the first time have reported a full year pattern of nearly more than 5,000 crores. And the EBITDA which is also gone up by nearly 11% to 16,090 crores because of the strong performance of our existing businesses of generation, transmission, distribution and revenue.
Also during the quarter also we have seen our EBITDA has jumped by nearly 10% to 4216 crore compared to 3829 crores last year. That has gone up by 8% to 1416 crores compared to 1306 last year in the same quarter. This of course has been driven by all our businesses. I have been sharing with you that our solar cell and module manufacturing plant is doing exceedingly well. We have stabilized the operations of the plant and the EATS are very good. We have seen during the year the plant has delivered a PAT of 857 crore which is more than double of the previous year.
Similarly rooftop solar has done exceedingly well with doubling of the installations. And we have also seen not only in the quarter but through the year the performance has been exceedingly well with a pat of nearly 500 crores. 499 Croresa discom has done exceedingly well in the previous year. The whole year path was just 439 crore. This year we have a PAT of 809 crores in our utility scale renewable. We have been able to commission a large number of projects and in house projects which have been commissioned have started building results and we do expect that the nearly 5 gigawatt of projects which are under implementation and these are all in House projects.
50% of it will be completed in this financial year and the balance 50% by 20 years. So very robust pipeline of projects and we are on top of them in terms of implementing and start generating power from all those answers in the coming two years. We did have a challenge of Mundra and because of that we had issues about the shipping profit also. But that is a thing of the past. We have now concluded the SPPA with Gujarat and we are in the process of finalizing it with all the other four states which we expect in next four to six weeks will complete.
They are in very advanced stage of approval in these governments. We are already operating the plant under section 11 but with the understanding that the tariff will be as per the SPPA and that has been accounted for in our quarterly results and going forward it will be accounted for in our operations. Our distribution business everywhere will continue to grow and we will have large capital expenditure as planned in our large utility scale projects as also in our hydro projects in Bhutan and the pumped hydro project that we are implementing in Bhipuri.
We have informed you that we are going to start work in our new 10 gigawatt of wafer and ingot plant in two stages and that will cater to our existing operations of cell and module plant which will require Indian made wafers from 1 June 2028 onwards. So we do feel that all our businesses which have now stabilized will give very good performance in the coming quarters. On the balance sheet also I find that our Debt is at 56,000 crores and this is in spite of a capital expenditure of nearly 13,000 crores in the last financial year.
Our leverage ratios are very stable. Net debt to underlying EBITDA is 3.3. And our net debt to equity is 1.2 which is very competitive for infrastructure and power industry. And we do expect that we will maintain similar discipline while going forward with our new investments in the coming years. As we have been sharing with you, we believe in growing but the growth has to be very calibrated so that these financial disciplines and the balance sheet discipline is maintained. And we are committed to enhance our generation capacity as also enhance transmission, distribution and hydro generation facilities in the country as also in Japan.
And we will continue to perform exceedingly well in the coming quarters. With this I will conclude my part of sharing my thoughts on the company and also on the power sector. I do look forward to hear from you and take your inputs as also take your questions and respond to them. So then please start asking the questions.
Operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press STAR and then one on their touch tone phone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Your first question comes from the line of Sumit Kishore from Access Capital. Please go ahead.
Questions and Answers:
Sumit Kishore
Good evening Dr. Sinha, you mentioned in your opening remarks that the capex for the financial year has been 130 billion rupees meaningfully below the guidance that you had given to us in November in odisha which was 250 billion rupees. So what really led to that guidance? With four months remaining in the fiscal seeing Such a sharp decline. And what is your guidance, realistic guidance for FY27 and what will it comprise in terms of the end projects? That’s my first question.
Praveer Sinha
Yes, Sumit. So I agree that our guidance was I don’t think 25,000 crores but it was I think about 20, 22,000. We have fallen short because some of the projects that we were planning to execute in the last quarter could not happen. And you know these projects are typically relating to the large utility scale projects, solar projects or wind projects or are the transmission line projects. Many of the places the right of way got delayed. Many of the places the transmission system was to be done by someone else under the TBCB we were supposed to use that transmission system for evacuating that that got delayed.
And you have seen there have been large number of reports of many TBCB projects, especially ISTS projects getting delayed. We are now in this quarter trying to complete some of the projects around 600 megawatt of large utility scale. Similarly in the pipeline are some of the transmission projects that we are executing, executing as the row issues are resolved. So these are not that these will not come, it’s just that the phasing has got impacted and those which we missed out in the last year we will complete all them, all of them in this financial year.
So that’s why our target of yearly investment continues to be the same and they may be certain deferment by a quarter or two but otherwise we are very much on track.
Sumit Kishore
Sure. I was referring to the slide presentation which shows 25,000 crores of capex. So the second question is on the Delhi distribution business where you know in the last two quarters there have been regulatory, favorable prior period regulatory orders. The quantum was 4.6 billion rupees in Q3, it was 3.2 billion rupees in Q4 at the EBITDA level and the profit level positive impacts have also been shown. So can you, you know, can Mr. Sanjeev sort of clarify what is the entire benefit that you have taken because of prior period regulatory orders at EBITDA and profit level in FY26 and FY25, how much is expected?
You know it is very difficult to predict but what sort of claims do you think are rightfully yours which are yet to materialize because these are meaningful deltas in the quarterly results. So let us say for FY27, you know, is there any expectation that we should have or we should
Sanjeev Churiwala
Budget for a decline in reported numbers for Delhi distribution?
Sumit Kishore
Yeah, I think what you’re saying is relevant if little context to that. The good part is when you whenever you see the regulatory upside those are pertaining to matters from a few years back those regulatory approvals were denied or deferred. So as a result we are very happy that many of those past regulatory clearances are now coming in. And this is not the first time that we are getting these clearances. This happens every year. In fact if you look at F25 we had about 333 crores of regulatory approvals coming in this year as you rightly picked up 783 crores is reflected next year too we will have something but to quantify at this stage it might be very very difficult because they have a pipeline of regulatory assets that we kind of contesting and discussing.
And you know, as you are aware it’s very difficult to predict an outcome on a regulatory settlement or a regulatory clearances. But yes, we would expect some amount to materialize. Now whether that is low or higher hitting today is very difficult. But my sense is as and when every quarter passes on we should be able to give you a better understanding on that.
Praveer Sinha
Sure. Just one last bookkeeping question. What is the IPP RE capacity that you expect to add in FY27? What will be the phasing of that capacity and would it be right to expect that for the solar component there is the module and cell would be supplied from Tata Power’s own manufacturing unit?
Sumit Kishore
The second question is very clear forward that that’s the whole purpose why we have put up the cell and module manufacturing and I think that they’re kind of quite integrated that we are able to kind of have the entire lineup of sales modules blocked in for all the pipeline. And as you can see we have about 5 gigawatts of pipeline as we speak and a lot of things will start materializing this time around from quarter one onward. So from a capex pricing point of view I think we will see in the current year a lot of consistency coming in.
Praveer Sinha
Also Sumit last year we did a huge amount of third party projects. This year we don’t have third party so everything that we will do will be in housing. Last year we did about 2,500 megawatt of total project implementation. So you can imagine that 2500 will be virtually internal that we will carry out. And maybe
Sumit Kishore
So if you deliver for instance 2 gigawatt of solar project then the requirement of module cell will be 2 into 1.4. The multiplying factor about 2.8 out of your capacity will go into in this example, it will go into your own capacity addition. Is that the right understanding?
Praveer Sinha
Absolutely. And then if we have rooftop. So whatever we are going to manufacture, we are shortly going to.
Sumit Kishore
So the intra segment elimination should basically reflect
Anuj Upadhyay
That in FY27.
Praveer Sinha
Yes,
Sumit Kishore
Yes, thank you. Largely around the RPT compliance in terms of the margins, but are very, very consistent. So that should not be posing a problem for you to kind of go do your modeling as well. But I think you kind of alluded to the 2 gigawatt of commission next year, which is kind of number that we also looking at. And if everything goes well, maybe it could be slightly higher than that. No, but
Praveer Sinha
Everything is not solar. So solar
Sumit Kishore
And wind combined. Yeah,
Praveer Sinha
So solar wind is there. So solar would be about 1.5 to 1.8. Will not be 2.5.
Sanjeev Churiwala
Thank you so much and thanks
Sumit Kishore
For the wonderful disclosure. Thank you once again.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, we please limit yourselves to two questions each per participant and you may rejoin the queue for any follow up questions. The next question comes from the line of Puneet Gulati from hsbc. Please go ahead.
Sumit Kishore
Yeah, thank you so much and congratulations for performance. My first question is on ovisa. You’ve been giving phenomenal performance year after year. Do you still see room for more efficiencies or should we sort of pencil in future growth more from regulated equity growth only?
Praveer Sinha
We’ll get to see much better than this in the next financial year. And I think next financial year possibly will be the best year. Many of the initiatives that we had taken in last few years have started showing results. Some of the initiatives were taken last year and the impact of it you will see this year. I think VISA performance next year should possibly peak in terms of the type of results you see.
Sumit Kishore
Okay, that’s very interesting. And second is on the hydro side you started taking, you know, large exposures to hydro now. And is the PPA already in place or would you be looking to sign PPA in some time?
Praveer Sinha
It is in advanced stage of approval as you know that while the PPA is agreed, it has to go through a regulatory approval process and that process is on the final stages and we do expect next few months that approval will come in.
Sumit Kishore
And lastly, if you can comment on the regulatory asset wind down in Delhi reform, Supreme Court had indicated an intention to wind this down. Any progress there?
Praveer Sinha
Yeah. So both Supreme Court and up till our monitoring that and the regulatory commission has promised that this will be amortized over six years up to 2032. And we are closely monitoring that. They have already given an affidavit under which they will amortize it. And we expect that it will get implemented as per the affidavit that they have provided.
Sumit Kishore
Thank you so much and all the best.
Operator
Thank you. Your next question comes from the line of Apurva Bahadur from IIFL Capital. Please go ahead.
Sumit Kishore
Thank you. Thank you for the opportunity. Sir, can you provide some color on the Gujarat ftpa? What is the agreement whether if you are sacrificing any profitability sharing any profitability on coal? What’s the quantum?
Praveer Sinha
So my Gujarat SPPA details we have already shared. And since it is also under discussion with the other four procurers, more details. Finally what is agreed, we’ll share once everyone signs on the dotted line.
Sumit Kishore
Okay. And. And in your disclosure for renewable business we see that the PLF for solar is lower due to lower resource availability. And also there’s a comment on curtailment. Can you quantify the impact of curtailment in FY26 and your expectation in FY27?
Praveer Sinha
The curtailment are happening in few places that also is not on a continuous basis. So very difficult for us to say that how much of curtailment will happen. Also some of the lines have been commissioned so it is not that there is full curtailment part of. So in some cases at least 60% they have allowed to evacuate. In some places they have allowed 80%. In some places it is a 20, 25%. So it’s a moving target which is there. And we continue to work with the transmission companies and CTU to ensure that the curtailment is reduced and we are able to evacuate all the power in cases where we have have we have the GNA and curtailment takes place there.
Of course we are reimbursed the cost on the supply
Sumit Kishore
And for next year the FY27 the targets we have for adding solar capacity do we have permanent DNA for all those substations or some of it is still on temporary DNA.
Praveer Sinha
So now we are being extra careful and that is why some of our capex which we had planned last year got deferred because we do not want to set up the plant and and beyond temporary gna. So we have been very cautious now and we are only commissioning or completing the project if we have a certainty on the transmission line and the permanent GA happening. So that action has been taken.
Sumit Kishore
Makes sense, sir. Lastly, if you can provide some color on the Indonesian coal prices especially after the West Asian war. The index is backward looking. So what’s your takeover there? How the prices should move this year as well as there was some news flow around potential tax imposition by the Indonesian government on coal mining. So if we can have some view on that as well.
Praveer Sinha
One is on the coal prices there has not been too much of movement and we expect that prices will be within plus minus 5% in that range. We’re not expecting too much of. The second is that we are hearing that there will be some more taxes that will be imposed on export of coal. But this has been under discussion for last many months. So let’s see what eventually gets decided.
Sumit Kishore
We have shared some details on thermal coal prices
Operator
Also
Sumit Kishore
Including Indonesian coal prices and slide
Operator
24, the analyst presentation which is uploaded. You can have a look at that later on. Virtually flat for Indonesian coal.
Sumit Kishore
Sure, sure, sure sir. Lastly, if I may just squeeze in one more. In your cash flow statement there’s an item of movement in balance related to service concession agreement. So what is this regarding? Because we see it has been a drag on cash flow for this year.
Anuj Upadhyay
It is. It is there in the working.
Sumit Kishore
So it’s a drag because revenues are not in recognized.
Anuj Upadhyay
It is related to CAPEX
Operator
Spend on the service congestion arrangement.
Sumit Kishore
It’s one time of CAPEX only which is shown in the CAPEX in the presentation of the US presentation.
Operator
Okay, okay.
Sumit Kishore
Ideally
Operator
It should be added to capex. Understood?
Sumit Kishore
No, I am good. Thank you. I’ll get back in the queue.
Operator
Thank you. The next question comes from the line of Ketan Jain from Avengers Park. Please go ahead. Thank you. Thank you for the opportunity. So my first question is on the Mudra plant. Is the entire plant operating under the supplementary PPA terms or is it only the Gujarat part? Is the rest under operating on the section level?
Praveer Sinha
This whole plant is operating all the five units. The section 11 is to facilitate the operation of the plant and give time to the procurers to get their necessary. The billing that is being done is being done as per the sppa. As per the overall understanding that has been reached with them as well as with Ministry.
Operator
Understood. My next question is on the key growth drivers. Which segments do you see to contribute most in the coming next two years for a rep?
Praveer Sinha
Key
Sumit Kishore
Growth drivers
Praveer Sinha
For the next
Sumit Kishore
Two years.
Praveer Sinha
Next few years. I have explained to you all these businesses will give profit good returns. So generation, transmission, distribution, renewable and renewable manufacturing, rooftop utility schemes. So each of these businesses are doing very good. We had a drag on Mundra that Also is behind us. So you will see excellent performance going forward.
Operator
Understood. That’s it for now. I’ll get back to the. Thank you. Thank you. Your next question comes from the line of Satya Jain from Ambit Capital. Please go ahead.
Satyadeep Jain
Hi. Thank you. First question on the supplementary PPA and the coal mines. In the past I think we were meant to understand that once you sign the supplementary PPA then maybe you look to monetize the coal assets. Is that thought process still intact? And let’s say if you sign the supplementary PPA in the next few months with other states, would you look to start the trade process? Sometimes the same is trying to understand where you are in the cold. Monetization
Praveer Sinha
Also depends on what sort of opportunity is there, what sort of valuation we get. If the coal market is good and we get a good valuation, we can always look at that. It’s little premature. Let us first sign with everyone and then see how the market is there. And at the right time we’ll take the decision which is benefiting us.
Satyadeep Jain
Okay, fair enough. Just a clarification on the re captive use of modules and already mentioned, as per the order, any new tender after first September the developers have to use domestic cell, but there is no mandate before that. So given the tariffs that you update for won’t reflect that domestic stand deployment, why would you look to use domestic stand in your FY27 commissioning? Given I believe this year you would be commissioning projects that were awarded before September 25th. I just trying to understand there.
And secondly would be solar rooftop. So you executed 1.7 gigawatt which means almost 20% market share. Is that something you are looking at in terms of FY27 also that market share has remained intact despite competition. Just trying to understand what is the opportunity you’re looking at next year and what sort of market share you’re targeting.
Praveer Sinha
We are definitely looking to enhance our market share. And our target is that in next year we will 20%. And having said that, we expect our rooftop business. So you have seen last year it has grown by 100%. And I definitely expect in this year also it will grow substantially more than what is expected from the market at this time. I do expect that FY27, the rooftop market, the rooftop business will grow, if not by 100%, at least by 50, 60%. So you will see exceedingly good performance from rooftop business going forward.
I also expect that most of our rooftop and you know that for rooftop, if you have to get the government subsidy then it has to use Indian Made sense module. So that will be catered from our existing manufacturing plan. Also in going forward, effective 1 June 2026 you have to use only Indian made cell and many of the projects are not grandfathered. So some of the projects which will get implemented in FY27 will require Indian made cells and modules. So I think our manufacturing plant is very well positioned to cater to large utility scale as well as to rooftop.
Satyadeep Jain
Thank you.
Operator
Thank you. The next question comes from the line of Atul Tewari from JP Morgan. Please go ahead.
Sumit Kishore
Yeah,
Praveer Sinha
In the same range it’s about 25,000. That is what we are expecting. As I mentioned to you, those projects which we missed out last year will ensure that those get completed in this financial year. And these are range of projects. These are not just large utilities here but it is also including the distribution projects and the transmission projects and the HYC projects we are working on.
Sumit Kishore
Okay, thank you.
Operator
Thank you. The next question comes from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Praveer Sinha
Yes, good evening and thanks for the opportunity. My first question on the note number five of the consolidated P and L there is a model mention of 250 crore deferred tax assets. Can you clarify whether we need to adjust or increase the taxes by 250 crore to arrive at the profit for the quarter?
Sumit Kishore
So as you are aware this is a deferred tax non cash. So basically given our future profitability projection. So I think I will give you some genesis as to where it is coming from. We had of course carry forward losses and. And of course when you look at the standalone book everything has to be adjusted against the standalone book to fully organize this. We have better visibility of profits in the subsequent years now and we feel that some of the carry forward losses can now be utilized within the time frame.
And as such from a statutory processes we have to recognize the deferred tax on the books which you have done in quarter four. Now
Praveer Sinha
This has impacted our console also, right? Console profit positively. My second question is the Tata projects it has been making losses for. It was making losses prior to FY24. 24 I guess 24 was the first year I think started making profit. Year 26 again I think there lost F25. They lost F26
Satyadeep Jain
Again. They lost.
Praveer Sinha
What
Satyadeep Jain
Is the outlook on the same for as the Inter F27 F28. Do you think the losses will get restricted? Now
Praveer Sinha
What has happened in Tata projects is they had legacy projects such as the dedicated state corridor project from the refinery project in Barme and some other projects which are there. Fortunately all those projects have now been completed and very little of it is left. And we expect that those legacy projects impact will be very minimal going forward. The subsequent projects that Tata projects have got have good margins and I do expect that in FY27 it will mean lack and it will start making profit from FY20.
Sumit Kishore
One more question if I can skew this. We haven’t seen accretion to under development re portfolio for a long time. How are you thinking about bidding for new assets for renewables given the of course the sectoral headwinds right now, do
Praveer Sinha
You want
Sumit Kishore
To remain under pause or do you think we can start adding to the portfolio from FY20?
Praveer Sinha
Yeah. So as we mentioned to you that many of the places there were two challenges. One was the transmission line have got delayed and there’s no point in taking a project and not able to implement it because the transmission system or the power evacuation system is not ready. Secondly, we have now come up with unique solutions where we can offer renewable projects along with storage project, the pumped hydro project and going forward we are looking for that sort of arrangement. These type of arrangements are not only with utilities but also with large CNI customers, steel companies.
We are in discussion with Tata Steel and some of the other large data centers which are coming up and we do expect that going forward we will not do pure solar, solar or pure wind, but it will be hybrid with storage and those will be much attractive in terms of the returns compared to the type of project which have been bid out in last few years.
Sumit Kishore
Understood, thank you.
Operator
Thank you. The next question comes from PL Capital. Please go ahead.
Sumit Kishore
Right. Yes sir. Hi. Yeah, in terms of commissioning you have mentioned. Yeah, sorry. So in terms of commissioning I think you mentioned we’ll be adding two and a half gigawatts this year and two and a half similar number next year and further like in a 1.5 to 1.7 gig is solar. But if I look at the pipeline then solar number is pretty small at 600 odd megawatt only. So is this, I mean like are we adding FDRE or complex fdre? I think if you can give color or maybe a breakup of two and a half between these.
Praveer Sinha
Those details are there in this slide. It is there
Sumit Kishore
777
Praveer Sinha
In slide 7 we have given the breakup and those are the type of projects that you would see which will be a combination of solar and wind. I agree that there are large number of wind projects which are there and for that we have already tied up all the wind turbines which have to go and we are going to implement all those wind products apart from the solar project. But these are all hybrid projects. These are not standalone solar or standalone wind. But these are all part of the hybrid FTRG projects that we are.
Sumit Kishore
In case you are only looking to this and you’re looking at your solar, you can also look at FDRE and hybrid, they will also have component of solar as well.
Satyadeep Jain
Okay. Okay. But is it fair to say that a large part of maybe like 1.6, 1.7 gigawatt will be FDRE in this commission
Sumit Kishore
Combination of all of this but larger chunk was hybrid and fdr.
Satyadeep Jain
Okay. And then
Sumit Kishore
In terms of commissioning, I think last year for our business we have added the one odd gigawatt and now we are seeing like you know, probably a pickup for us. So I mean is it fair to say probably the issues on transmission and other infra related issues that are kind of behind us and probably things are much better.
Praveer Sinha
Not everything is behind us. But yes, some of the areas where it had gone delayed, they are now coming up, those projects are coming up and we should be in a position to match our project implementation with the power evacuation timeline.
Sumit Kishore
Okay. And maybe one last thing. Anything that we can share that we are doing power for nuclear as such and anything that you’re seeing any traction that is happening on the ground. That’s my last question, sir.
Praveer Sinha
Well, on nuclear we have shared with you that we have working with three state governments, we have identified the land, we have also taken up for water allocation for which necessary approvals have been given to us. And we are also carrying out detailed geotechnical studies of each of these. And nuclear plants require different types of geotechnical studies. Those are under progress. We are now doing detailed DPR of projects to be set up and this will be done in collaboration with NPCIL. These are small models, two into 220 megawatt plants.
And we do expect that some of them, especially some of the states we will be able to do a proper DPI in the next six months time. And we are also parallel working on some of the other aspects which needs to be finalized with nuclear power. So quite the detailed discussion. But it will take some more time for us to finalize the arrangement.
Sumit Kishore
Okay. Okay. When you say I mean dtr. So probably in terms of megawatt and all, it’s still not, it’s still kind of WIP as of now, that is,
Praveer Sinha
I told you two into 220 megawatt. Okay.
Sumit Kishore
That is okay. Okay. Fine, Yeah, I think. Thanks.
Praveer Sinha
And for answering all the questions. Thank you.
Operator
Thank you. The next question comes from the line of Nikhil Niranya from Bernstein. Please go ahead.
Sumit Kishore
Hi. Thank you. I had just one question. I know the company has taken a stance to not add any new coal based generation capacity. Wanted to check if there’s any change in that view. Given so many states are coming up with coal fired power plant tenders.
Praveer Sinha
We are examining that. It is a good opportunity and we find that is attractive and it’s a bankable ppa. We’ll definitely look at those.
Sumit Kishore
Understood. And if I may ask one more question, I think in an earlier question on the use of domestic, the sales you are producing, I understand the use for the rooftop solar segment. But on the utility scale side most of your tenders are pre the 2025 days. So I believe they should not be needing DC ourselves. So anything I’m missing there?
Praveer Sinha
I think some of them do require a domestic. So we are working on that. Because they will bid under those conditions that you will be using domestic cell and module. So out of the projects that we have we find that majority are with domestic.
Operator
Okay,
Sumit Kishore
Understood. Thank you. Those are my questions.
Operator
Thank you. Your next question comes from the line of Rajesh Majumder from 361 Capital. Please go ahead.
Sanjeev Churiwala
Yeah, good evening sir and thanks for the opportunity. So I had a couple of questions on your slide. 7. The current operational capacity is 16.7 gigawatt and including pipeline is 26.3 which means an addition of 10 gigawatt. Is this the FY30 figure? 26.3 or how should we take this figure?
Praveer Sinha
This would be, I would say FY
Sumit Kishore
Current pipeline which will go. Yeah.
Praveer Sinha
So this is the current pipeline. So this includes the 2,800 megawatt pumped hydro at Shirota where the work will start in this financial year. And, and all the existing. That means the Bhutan Hydro 600 plus 1125 where we have already signed the financing arrangement with World Bank. So this takes care of all. Some of them will come up in 2031. 32, that is the 1125 Bhutan project will come in that year. Some will come come in 3031. But of course all these solar and wind projects will come by 2030.
Sanjeev Churiwala
And so your capex figure of 25,000 crores. If you take an addition of 2 gigawatts per annum and the Capex is roughly about say on the higher side, maybe 12,000 to 15,000 crores, does this mean that 10,000 crores of regulated capex will happen in FY27.
Sumit Kishore
I think it’s not about regulated capex but a combination of all the capexes that Dr. Sinha spoke about. Of course 0.5 gigawatt of pure only solar and wind that as you rightly said that could be 50,000. But then you have capex coming up in some storages, capex coming up in pure hydro. So a combination of all of this transmission in transmission as well. So I think a combination of all of this next year is 25,000 crore. Our sense is probably going forward. Also we’ll have a similar kind of capital outlay
Sanjeev Churiwala
For FY28 as well. You’re seeing.
Sumit Kishore
Yeah,
Sanjeev Churiwala
My last question is we have signed the SPPA with Gujarat of course. But now if by there is an export duty or royalty which comes from Indonesia then how does that work with the SPPA and how does it impact the negotiations with the other state going forward?
Praveer Sinha
Coal cost is a pass through. So whatever is the cost of coal will be paid for. So that’s the type of arrangement that you have
Sanjeev Churiwala
Including a major royalty change.
Praveer Sinha
When it’s a coal cost fob cost it has to be pass through whatever is included in that.
Operator
Thank you. The next question comes from the line of Anujapadi from Investec. Please go ahead.
Anuj Upadhyay
Yeah hi sir, thanks for the opportunity. Sir, need one clarification on how should we read slide 7 and slide 32 together? Because slide 7 where we have highlighted 5 gigawatt of renewable capacity of which I guess 1 gigabyte is a combination of plane, wind and solar capacity. Whereas we have 4 gigabyte, a combination of I guess 2 and a half of FDRE and rest the hybrid project at the RTC. But if I see your FY32 slide where we have highlighted the timeline of the FDRE and hybrid being getting commissioned, the contracted capacity comes only to the tune of 1200 megawatt.
So does the 500,000 gigawatt of renewable capacity is the actual installed capacity or the contracted installed capacity? Because you know to the prior question you have mentioned that we’ll be adding 2.5 gigabyte each of IPP projects. So this is the contracted 2.5 or the actual capacity
Sumit Kishore
Is the installed capacity. Capacity install capacity is given in the
Praveer Sinha
Slide.
Anuj Upadhyay
Sorry,
Praveer Sinha
On slide 32 we have given the install capacity and the heading is the contracted capacity. So contracted will be lowered in the install when we give the guidance we gave it on the install.
Anuj Upadhyay
Exactly. So until when you, you know when we have mentioned that 4 gigab of hybrid and FDRE. So. So does that translate to around 1200 megahertz of contracted capacity? Is my understanding correct? Or we are. There are few more capacity for which the details are now here. Because the PP or the approval are yet to be received.
Sumit Kishore
That is what.
Anuj Upadhyay
Okay. Okay. And my second question belongs to your Odisha projects. You know again to a prior question. You mentioned that next year probably will be picking out in terms of the performance. So apart from Northern circle, I believe in other areas still have us in the range of 18%. Kind of an AT&C. So what kind of loss reduction trajectory we can assume for the other three circles and to what level it can go? I mean like North Odisha is already at around 10% whereas others are already at 18. So to what level we can expect the loss to further go down and by what timeline?
Sir,
Praveer Sinha
There is a trajectory that has been agreed with the visa regulator. And based on that we do expect that all of them will come in 12 to 13% range in next four to five years. So you can expect that we will reduce about 2% every year. In that sort of product will be a ballpark.
Anuj Upadhyay
Okay. You mentioned about four to five years, right, sir?
Praveer Sinha
Yeah.
Anuj Upadhyay
Okay. Okay. Thank you, sir. That’s it from my end. Thanks for the opportunity.
Operator
Thank you. The next follow question comes from the line of Bahagu from IIF and Capital. Please go ahead.
Sumit Kishore
Thank you. Sir. I had a bookkeeping question. In your Q4, profitability for IEL we see an increase of almost 63 crores. And then similarly for Mumbai Transmission as well of around 50 crores. Given the regulatory nature of these businesses, is it safe to assume that there was a significant asset capitalization or are there any one offs?
Praveer Sinha
This is more the deferred tax part. Right.
Anuj Upadhyay
One of the plants got commissioned.
Praveer Sinha
Okay.
Anuj Upadhyay
So it’s an asset which has been added
Praveer Sinha
Because of that in
Sumit Kishore
I.
Praveer Sinha
Yeah. In a transition.
Sumit Kishore
Okay.
Anuj Upadhyay
So this. This increase is recurring for translation business.
Sumit Kishore
No, no. That depends upon the asset capitalization timing and the default type that is created because of that. So yeah, I think it’s not a yearly phenomenon but depends upon the asset capitalization and the profitability of that particular plant.
Operator
Okay. And same thing in IL as well.
Sumit Kishore
I’m talking about il.
Operator
Okay. Okay. And the transmovied transition
Sumit Kishore
Based on Capex. That is also Capex. That is based on Capex. Your Capex. It is recurring.
Satyadeep Jain
Okay, thank you so much.
Praveer Sinha
Mumbai transmission adds every year thousand cor of CapEx on a 7030. You’ll have return on equity on 30% so that’s, that’s what you need to consider. Plus certain o benefits.
Sumit Kishore
Very clear. So, thank you.
Operator
Thank you, ladies and gentlemen. We will take that as our last question for today. I now hand the conference over to the management for closing comments.
Praveer Sinha
Thank you everyone. And if you have any other questions, please connect with Katskudi and Anshud and we’ll be more than happy to respond to them. Also, if you have any suggestions on improving the quality of presentation or any more details are required, please reach out. We’ll try to make it more analyst friendly in terms of giving you more information and data. Thank you. Thank you to all of you and take care.
Operator
Thank you on behalf of Tata Powers. That concludes this conference. Thank you everyone for joining us. And you may now disconnect your lines.