Tata Power Company Limited (TATAPOWER) Q3 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Tata Power Q3 FY26 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Dr. Pramir Sinha, CEO and Managing Director of Tathapar, for his opening remarks. Thank you, and over to you, sir.

Thank you. Thank you very much, and good evening to everyone, and thanks for joining in the call. I have my colleague, Sanjeev Churiwala, CFO, J.V. Patels, Group Financial Controller, Kasturi, Chief Treasury, and from Investor Relations, we have Amshul and some of my other colleagues from the Finance Department. Before I share with you some of the salient features of the quarter performance, just to give you a little background, the power demand during the quarter three and nine months for the last financial year has been, I would say, not very high, but has been nearly 7%, which is less than what it was the previous year. But I think when we look at both the demand increase in December and January, it looks like we will have a rebound in this year, especially with summer expected to be a little more warmer than last year. We do expect that peak demand will be in the 270 to 80 gigawatt range, and we can expect a very large increase in the demand of power in the coming months. Thank you, sir. In last nine months, we have seen huge capacity add, especially in renewable space, and while our overall capacity has reached 514 gigawatt of installed capacity, nearly 45 gigawatt was added in this fiscal, out of which 38 gigawatt is renewable capacity. So, huge capacity additions have happened, and we do expect that going forward, this momentum will be continued. Looking at the financial performance of the company for the quarter, we have given a very strong operational and financial performance with the EBITDA increase of nearly 12% year-on-year at rupees 3,913 crores. Alright. Thank you. All right. Thank you. Similarly, the PAT is up by 7% for the nine-month period to 3,702 crores. This quarter, what we have seen is many of our new businesses have come to age, whether we look at our solar cell and module manufacturing, where there has been a huge increase in our plant profit tax, profit after tax, which has gone up to nearly 251 crores in the quarter compared to 112 crores last year. For the nine-month period, the plant has delivered a pat of 592 crores, which is an increase of 154% compared to 233 crores in the last year nine months. Similarly, our rooftop has done exceedingly well. We crossed one gigawatt in nine months period, and in Q3, we executed in the previous year. In this quarter, we executed 372 megawatts compared to 173 in the previous year. The rooftop pack has increased in the quarter to 111 crores compared to 60 crores last year, And in the nine month period, it has gone to 324 crores compared to 110 crores in the previous year nine months. Similarly, Udista Discomps have done very well. The profit of Udista Discomps has gone up to 226 crores in the quarter compared to 86 crores last year. And in the nine-month period, it has gone to 505 crores compared to 164 crores in the previous year nine months. I think what is important is that many of our new businesses have now started showing results. And in the future quarters, they will further stabilize and produce much better results than what we have seen in the previous quarters. We also have seen that many of our other businesses, including the transmission businesses, have started showing results. We were able to commission some of our TBCD projects, such as the 400KB Kuteshwar Rishikesh transmission line. Similarly, we were able to complete some of the other projects which were under implementation, and some of the projects will get completed in this quarter also. We also got a letter of intent in the last quarter for the Ingewari line, and we are expecting some more projects Thank you. So that we are in a position to start operation of the plant, maybe by the end of this month, as there is now a huge demand of power that is coming up, and we should be ready for the summer months requirements of these states. Work on all our other businesses, especially our PSP project in Dhe Puri and our hydro plants in Bhutan are going at full swing, and they will meet the timelines that have been set by us for both these projects. These are very ambitious timelines that we have set for PSP and the Bhutan project, and And we are very confident with the pace of work that is going on that we will be able to complete. On our distribution business, we expect that some changes will happen by way of the Electricity Act Amendment. And we are expecting that once the Electricity Act Amendment is put into Parliament We will get many more opportunities on fabler licensing in the country. Similarly, we are expecting some more announcements on the distribution sector in the next six to nine months, whereby certain more states will come up for public-private partnership based on some of the other incentives and concessions to be provided to them, especially to some of the We also expect that many of the new initiatives of the government including nuclear power and all that will bring more clarity in terms of the technology transfer, in terms of sourcing And in terms of the opportunity that will come up, we will set up these nuclear plants, especially the small modular nuclear plant in various parts of the country, which we are in continuous discussion with the government, Department of Economic Energy and PCIL, as also with MUTE-IU So that these are put in practice quickly, and some of the projects can start work in next 24 months. We are always working towards improving our performance, and to that extent, you will see that our financial metrics are very, very conservative, and we continue in spite of We continue to have a net debt to underlying EBITDA of 3.4 and a net debt to equity of 1.2 and we expect that the type of calibrated growth we have will continue in future quarters also. So with this, I will hand over back to you for your questions and me and my colleagues are here to respond. Thank you.

Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch door telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We'll take a first question from the line of Mohit Kumar from ICSA Securities. Please go ahead.

Good evening, sir, and congratulations on strong numbers in solar manufacturing and solar rooftop especially. My first question is on Mundra. Sir, of course, you are trying to resolve with the Gujarat, and you will subsequently go to the other procurers. My question is, till the time we get the final resolution from the other procurers, is it fair to assume that you'll be able to run the capacity which you only linked to Gujarat in the interim? So, this is all under discussion. We had a few months back a joint meeting of all the procurers, during which it was agreed that Gujarat will take the lead in finalizing the STPA terms. Now that the SPPA has agreed with Gujarat, leave one point. We will be circulating this to other states, and once we get there in principle of approval, we will try to start opting the plant and scheduling it to them based on their acceptance. So, hopefully, in the next few weeks, we should be able to find out the comfort level of this other security, and then we will start shooting in the house. My second question is, how do you think about the renewables capacity addition over the next three months? I think the target we have set for our sales was two and a half gigawatts, if I remember correctly. I think we added 600 megawatts, if I'm not wrong, in the last Do you think we will still be able to meet that 2 gigawatt target? Our target this year was that we will set up 2.6 gigawatt, which included third party and ourselves. We have already done 2.3 gigawatt, which includes third party, and also it includes 900 megawatt of our own capacity add. We have another 400 to 500 megawatt of projects, which we are pursuing, which we expect to complete in this quarter. And then we have projects which will come up in 2027. Most of the projects will be our own, because all our so-called third-party projects have got over, including

We'll take our next question from the line of Sumit Kishore from Access Capital. Please go ahead.

Good evening, sir. When I look at the of Q3 F526 EBITDA to Q3 F525 of 432 crores, it is almost entirely explained by the bump up that has happened in the Delhi distribution business. Although the daily distribution business has seen a 2% decline in power purchase and sale, power purchase and sale, there seems to be some regulatory adjustment there which has bumped up the EBITDA. So why hasn't it been properly called out in accounts in the presentation and what are the details there because it seems to be explaining the whole growth of the quarter.

What you have to do is you have to see the increase in EBITDA, considering that last year we had an EBITDA impact from Munra. There was a positive EBITDA of 300 tarot. That is not there this year, and that is being compensated from our rooftop business, from our manufacturing business, and our Uriza business. There is a one-off that we have got in Delhi Discom because of the regulatory order that we got for two-ing of tariff for 2022-2023, but notwithstanding that also, there has been an increase in our existing portfolio of businesses and that has helped us for the increase in EBITDA for this call.

That is very clear. That is very clear, but the truing up amount, you know, has just become congruous in a quarter where you have had the big Mundra impact. What is the amount for the quarter?

Mundra, there are various provisions that we have to do. I think in the next quarter, when we do the complete truing up, we will be able to give you the complete picture.

Okay, but what is the impact for nine months that you have trued up in your numbers?

I think all put together when we look at 9 months, it's closer to about 800 odd crores of losses that we have put.

Which is losses for Mundra?

For Mundra only, yeah. Because Mundra has been shut for 6 months now and of course, when we the plant is shut, we don't get the capacity charges. This is at the

EBITDA level or the PAT level?

At the PAT level because, you know, for Mudra and other Tamil power plants, PAT level matters the most.

Okay. Now, asking is for Delhi distribution for the 9-month pay period, what is the true-up benefit that you have taken in members?

For six months, which again to your earlier point, we have been reporting that in the earlier quarter and this quarter, the total regulatory impact of TPDDN is about 344 crores for six months. We also had a similar clue of impact last year of 333 crores. That is there. Plus, in the last year corresponding same period, we had the order impact for more than 32 crores. All of them have been, you know, appropriately and recorded in accounts.

It is still not clear to me what is the benefit that you have booked in the third quarter. You want it right here or third quarter only? Third quarter only also because you are saying that the six-month number was clearly mentioned. The third quarter number is not clearly mentioned.

The third quarter that impact is about 344 crores on TPGD and regulatory impact.

And that is flowing from revenue to profit or is there any other benefit at the EBITDA level?

No, so this is net of taxes of course. So, the gross level is more.

Yes, gross of taxes EBITDA benefit is more.

Yes, so it is 460 crores at the EBITDA level.

How much 464? 460 crores. 460 crores I heard, ok, ok.

In fact, if you see the notes on accounts, Sumit that is a complete disclosure around that, we will get the full numbers.

Ok, that is clear. The second question is typically you have a elimination in the renewable cluster under others which is a negative number, this time it is a small positive number. So, typically our understanding over the last few quarters was that if you, because you do some internal intratransfer, there is some elimination, why is the elimination positive this time?

So, you are right, the elimination that is done, whether it is a positive number or the negative number, everything has to be eliminated. So, whenever there is an intratransfer and there is some positive number, that is eliminated So, the idea is that at the path level, there's no impact. And this is basically a two-up on a quarterly basis. So, the way you have to read it is net of elimination, then you look at 912 crores, you can look at the slide number 52, which has been uploaded, which shows the cluster-wise performance, the backup is there.

Yeah, I'm looking at the cluster-wise performance. So, because you are doing projects which startup power is setting up on its own books, I am assuming that part of the modules are going from your manufacturing facility to your own projects. So, which is why the elimination needs to happen on consolidation because it is being consumed by your own entity. So, why is the elimination a positive number?

What I am saying? So, if you look at the renewable rights, you have this Genco, Solar EPC, TP Solar. So, TP Solar would provide services to the Genco in terms of supply of model. Similarly, the Solar EPC would also do the services for Genco and as well as the third party. So, of course, there are many, many projects within that. However, if any project is having a negative loss because of the contractual nature of the agreement, right, that also needs to be eliminated. So, one of the projects could be a negative you know path margins for most likely for for the solar EPC, which now has been eliminated for positive 50 crores.

There was a loss there was a loss which you have made in the solar EPC business which has been because the elimination has then become a positive fact, ok. This is very clear. Just one last point, there is some positive impact for FGD recovery in Q3 and 9 months. So, we have a significant amount for Miton which also seems to be bumping up the number quite dramatically on a year-on-year basis in Q3 particularly. So, what is that impact? That's my last question.

So, we have commissioned the FGD for Miton and given that this is a regulatory asset, we are getting the regulatory returns. So, the impact of that is about 50 crores and you will see that reckoning happening every subsequent quarter's now.

So, 50 crores and every quarter it will come, 1,5, 1,5, 1,5 crores. Thank you and wish you all the best.

Thank you. We will take our next question from the line of Apoorva Bahadur from IIFL Capital. Please go ahead.

Hi, sir. Thank you for the opportunity. Sir, you briefly mentioned about more opportunities So, we will be able to get the opportunity on the distribution from the PPP side, possibly due to some sort of a package for the DISCOMS. Can you give some more colour on that? What sort of package are we foreseeing here?

Well, there are many states who have huge financial loss. And so some of those states will be given the opportunity of a long-term loan at zero state of interest, but there will be certain caveats in terms of they need to go for CPP and only against that they will be given. And so those are states which are already identified in terms of the type of financial losses they have, and it is expected that once that is announced, we will have a few states who will be awaiting that opportunity and going for PPPs.

So when should we expect this, around any timelines?

I think in the next six to nine months this should happen.

I also wanted to sort of understand our strategy on the rooftop side, commendable, I mean, the improvement that has happened and the growth and profitability, but has it reached some sort of peak revenue or a peak profit or do we foresee more growth here? And secondly, any plans of cross-selling more, especially on the storage side?

Well, this is the tip of the iceberg, I would say. And the opportunity is phenomenal. And what we are seeing is, against the Prime Minister's program, 1 crore houses were supposed to be done. We've already done only 25 lakhs. So there is a huge number. In this budget, another 50 lakhs have been added. 5 million has been added. So, there is a huge opportunity with the type of financial support that is provided. Without the financial support also, we are finding that a lot of C&I customers are also going, as also customers who want larger capacities, 10 kilowatt and above. So, I think this is a business which is going to be there for a very, very long time. We would also find that people will, those who have put up smaller capacities will augment it in future based on their increase in energy requirement. And this business, I do feel it is something which is very futuristic and will keep on improving going forward.

Okay, sir. So lastly, one theoretical question. Now that we are close to solving Numbra in terms of the supplemental PPA, in case the government again sort of implements Section 11 because the last time it implemented it was not just for Tata Power but for all the imported coal with assets, and so does Section 11 supersede the supplemental PPA or will we be kept out of the purview?

Section 11 is imposed and there is a shortage of power. And hopefully before that happens, we should be in a position to close this arrangement because this power is required by all the structural states. And if they go for section 11, they have to pay more. So it makes more sense for them to go ahead and finalize the STPA rather than going through this.

Thank you so much. All the best. Thank you.

Ladies and gentlemen, in order to ensure that management is able to answer queries from all participants, kindly restrict your questions to two at a time. You may join back the queue for follow-up questions. The next question is from the line of Puneet from HSBC. Please go ahead.

Yeah, thank you so much. My first question is, you know, you talked about one point which is missing in Munra. Can you elaborate where is the point or distance still?

There is one point. Let's wait for that clarity to come from the government. Okay. Secondly, on the Delhi distribution side, you know, there was this talk about reducing regulated assets, but in this quarter, the number has gone up again. Any progress that So, the regulatory asset per se has gone down, but what has happened is that there is one more order that has come, the two-up order has come for 22-23, which has given another 400 crore additional, additional regulatory asset to the company. So, that's why it's looking high, But in actual during the quarter, it has come down by 460,000. So, it has come down by 460,000.

Okay, understood. And lastly, if you can talk about which are the big

renewable projects that you will commission in FY27?

Which are the?

Big, yeah, projects which you will commission. I think some of the Tata steel projects, we already So, I think many of the wind projects will get commission and also some other projects will get commission between this quarter and the next quarter.

And what should be the run rate for the year that we should assume for your own and separate?

Thank you so much and all the best.

Thank you. We will take our next question from the line of Ketan Jain from Aventus Park. Please go ahead.

Thank you. Good evening, sir. Congratulations on a strong performance in rooftop and module manufacturing. Just on the rooftop side, what's your outlook on the rooftop addition in India? I think we have added around 7 to 7.5 gigawatt. Will this continue going forward in 27 and 28?

I think if you look at the case of the rooftop addition in the country as also by us, it has increased tremendously with much better supply chain, much better channel partner, much better arrangement to supply and erect information. I do expect that the speed will go much further. Also, the government has come up with a new scheme, which is, DISCOMS have been asked. We are doing it in Odisha, which is known as the ULA scheme, utility-led. And I think the

question is on the module manufacturing. I could see that we've sold around 960 megawatt of modules. And we've also produced 960 megawatt of cells. So is it right to assume that all of these cells are DCR module cells?

Well, in the last quarter, we had some ALMM, that is imported cells we had used, because the order was for supply of imported cells with domestic modules, but I think in next two quarters, we'll have more of our own cells and our own modules, because from 1st June, only DCR cells and DCR cells, So, you will see more or less that whatever cell batteries produce is fully consumed internally, but yes, in the last quarter and also in this, there will be a change.

Understood. So, this 962 megawatt is all the external phase which we have done?

No, it's all…

Largely, we have mentioned for group talk and our own businesses and a rough breakup is a small quantity of about 168 megawatt peak for LLM and DCI we have done 795 megawatt peak. Both put together is about 962. So XR would be just only 25%? XR would be even smaller than that. Very small percentage.

So the realization is a blended realization of the DCR and non-DCR model both? Yes. And what would be the current realization sir in the market for a DCR and a non-DCR?

Very difficult to, it depends on the type of because there are 540 and 580 and all and also

I think it's difficult for us to give a breakup because a large quantity of that is in-house consumed in our various businesses, but if you look at the P&L which is also uploaded, we'll have an EBITDA margin of close to 28% for the quarter, and for nine months we're delivering close to 28-25% of EBITDA margin.

My last question is on the renewal execution part. You mentioned 2.5 giga what next year. So 2.5 giga and Fi27 is a target, right, sir? For our own capacity? Our own capacity. And just one addition to this is, what are the challenges are we facing in execution of our own capacity? Or is it a statistical call that we are first finishing our third-party order book and then focusing on our existing, our own capacity, or is there any challenges we are facing on in execution?

This was timing issue only. So, the third-party order we had received much earlier, and our own capacity are orders that we got last year. So, based on the timeline that has been agreed with, we are getting it.

Thank you.

Before we take the next question, I would like to remind participants, to ask a question, please press star and one on your phone. The next question is from Satyadeep Jain from Ambit Capital. Please go ahead.

Hi, thank you. Sir, I just wanted to ask on renewable energy execution once again. I know you're looking at 1 gigawatt broadly commissioning this year. In the last nine months, it's been 600 megawatt against industry at 38 gigawatt. Even if you step out solar rooftop, that's about 30 gigawatt, 2% market share for data power. And that one gigawatt that you're looking at now is, despite third-party execution, the initial expectation was one and a half to two gigawatt. So there seems to be a miss, and we are seeing it across the board for some of the larger players misses in terms of execution, but the industry is still adding a lot of capacity, which means it's a very long tail. In case you do meet the targets next year, either mathematically, if you look at the market share, the industry commissioning has to more than double, or some smaller players lose market share. I just want to understand, if you do take market share, how is that going to play out? Why should smaller players commission less or take less market share next year? In the overall, not just Tata Park, I was just trying to understand this entire long tail, how will that shrink?

If you look at Tata Park this year, we've already commissioned 2.2 gigawatts of projects, and that means that we have inherent capacity to execute such large capacity, and we will add another 500 megawatts in this quarter. So, 2.7 gigawatts we will be doing in this financial year. If we look at next year, we have a capacity to execute 2.7. We may do more than 2.5 while we have taken the initial estimate of 2.5. We can go up to 3 gigawatts of capacity. As you are aware, we have a pipeline of nearly 5.2 gigawatt of projects which we need to execute. So within the next two years, we will execute. Also, it's not just executing the project, but also the timeline when the transmission line comes up. As you are aware, many of the transmission lines got delayed, and we are now timing the project completion with the transmission line completion so that it should not be that these projects are left stranded and unutilized when the transmission lines are not available. So I think it's a question of better planning, better phasing, and staggering it in such It's such a way that it is able to produce as soon as they are implemented and the power can be executed.

Let me ask it another way. When the year started, obviously, you were looking at 1.5, 2 gigawatt, if you roll back, one year ago. So at that time, also, you had the third-party order book. So what has – is it not some delay in execution, transmission, Or is it purely that compared to initial expectations, you prioritized third-party book? And the delay in commissioning transmission has been an industry-wide phenomenon. But despite that, we're looking at 38 gigawatt capacity for the entire industry. But still, are you saying the delay in commissioning for capacity, delayed capacity commissioning for certain players more than it did for others? Just in the context of overall addition, trying to understand compared to the earlier targets you had.

You need to understand that many of the projects are either intrastate projects or interstate projects. The intrastate projects, the challenge of transmission lines is not so much. But in interstate transmission lines, they have been challenged. Our projects that we were doing for third party were synchronized with the commissioning of those transmission lines. For our internal projects, again, it was synchronized. Some places, some of the lines which were supposed to come last year have got delayed and they are expected by March this year or maybe it may go up to May, June this year and some So that's why the project completion is, has to be staggered in such a way that it meets the timeline for evacuation. Otherwise, there is no point in setting up of the plan if the power cannot be evacuated.

Perfect. So, one more question on Odisha. Just we are seeing increase in income. Largely, it seems to be reduction in ECL losses. Just wanted to understand what is driving that reduction in ECL, and is it also reflected in actual increase in cash profit? Is it mainly accrual, or actually your cash receipts have also increased significantly in Odisha, and what has led to that ECL reduction?

Well, I think our selection efficiencies have improved, our billing efficiency has improved, and the performance of the research has improved tremendously. If you track it in the last three years, the performance has been improving every quarter, and the coverage of billing has been better, loss reduction has happened, stealing of electricity So I think overall the performance of all the coaches has been very good, and we need to acknowledge that the type of work that they have done to bring about a turnaround, not only financially but also operationally, is phenomenal, and that is why you are seeing a much better performance in this quarter as well as in the nine months of this year.

And to add to your question, whether it is converted to cash, absolutely, if you look at Quototri itself, and you look at the distribution cash flows, largely, we have learned about close to 800 crores of cash only for the product.

Thank you. We'll take our next question from the line of Girish Achipilla from Morgan Stanley. Please go ahead.

Oh, yeah. Thank you, sir. So, my question was on your wafer and ingot plan. Where are we right now, and what is the size and any state incentives? That was the first question, sir.

This is under discussion. We are examining the size, all those things, and we'll take some more time to take the final decision.

Okay, and from China, we are seeing wafer and poly-silicon prices increase. Currently, we have, I think, more than 5 gigawatt under construction. So, how much of an equity IRR impact does this cost? Because you would be sourcing some of the raw materials from there. If you can quantify it.

So, if the input material cost goes up, the output material cost also, because this is true for everyone who is manufacturing the modules in the country. So, the market is a phenomenon, we will get a higher price realization in the market.

Yeah, I mean, but your EBITDA for your utility scale projects remains the same, but your gross Thank you.

Long location.

Okay, and if I hold you correctly Thank you, sir. For excluding third-party, next year, you are targeting 2.5 gigawatt and FI28, another 2.5 gigawatt, is that the way it will happen in terms of your…

Then 2.5 gigawatt, more than 2.3 gigawatt. Okay. Thank you.

Thank you. Next question is from the line of Anuj Upadhyay from Investec. Please go ahead.

Yeah. Hi, sir. Thanks for the opportunity. The first is on the margin front, across your EPC and the rooftop. So during the quarter, the margin has fallen across both the segment, and probably I have of an opinion that with complete operation of your cell and module capacity, this margin volatility across the EPC should come down significantly. So could you just explain the reason for this fall in EPC margin and rooftop?

I think on the EPC side we kind of target that margin of close to 5 to 6 percent every quarter, but as you look at between quarter to quarter depending upon the two ups there could be challenges, but by and large that's what we have been targeting. Because if you look at the overall solar EPC margins, it's a very, very healthy margin overall solar booktops about 14.5 and we look at large Okay,

so this is what it should be represented, right? Sustainable basis?

That's what we think, because even quarter three, when we look at the quarter three, margins, back margin is 7.6, and nine months is also 7.8.

Okay, and secondly, on a debt profile, sir, I can understand on the regulatory side, I am sorry. But, say for companies like Methone and your Coal SPV, the debt across the respective businesses has largely remains stagnant. So any timeline on when can we expect the debt reduction happening over there?

I think the debt what we see from a console is we have a debt equity of 1.2, a debt to underlying equity of 3.4. So, we are on a very, very comfortable journey given that we will be spending, you know, We will have you know debt in the books, but we have to we want to ensure that we maintain our equity and debt to EBITDA you know profile on a very conservative basis.

Yeah, okay fine sir, I mean like on a console no issue, but just on these two segments I wanted to have a view of whether we should expect any kind of a debt reduction happening from here on or it would largely remain like a similar level.

So, you are referring to which segment?

For method and core SPV.

So, my phone is a regulatory asset, we are not doing any capexes. So, as for the regulatory asset, we will keep on earning cash over there and do the exchange. The debt will only reduce.

Fair point sir, I will choose.

Anush, does that answer your question?

Yeah, I'm done with it. Thank you.

Thank you. We'll take our last question from the line of Aniket Mittal from SBI Mutual Fund. Please go ahead.

Yes. Actually, I had a question more at a sector level to understand. So, we've obviously seen renewable awarding pretty much dry up. There seems to be some sort of deadlock here with almost 40 gigawatts of PP unsigned. Just to understand Can your thoughts, you know, what's the pushback that the SCOMs are having on signing PPAs and when do you think renewable awarding in the country can sort of come back?

I think the renewable projects are getting delayed because of the connectivity issue and in such time new evacuation lines are set up, We will be a little slower. All the existing connectivity approvals have been given and there is no fresh approval being given. And until that happens, there is no point in tying up new removal projects. So, I think we will have to see how quickly some of the big sum up and some of these new lines are avoided, so that the project pipeline can be suitable.

In that context, how you look at certain country level, let's say renewable additions happening, obviously last year has been a fairly good year for India, but do you see risk to that, you know, numbers sort of slowing down for the next year?

I think at least for next two years, we have a lot of renewable projects as also transmission line projects which are under implementation. So to that extent, I don't think this will slow down to a very large extent and we should see a good momentum at least for next two years.

Great. It is one, you know, confirmation I want to wrap. So for all the renewable projects That, let's say, Tata Power builds on their books, you will be using your own manufactured cells. Is that understanding, correct?

Absolutely right.

And within that, so, two and a half kilos out of renewables expected to the commission next year, how much would solar be out of that?

I think it's now about 50-50.

Okay. Got that. So, those are the questions. Thank you.

Thank you. We'll take our next question from the line of Nikhil Bhandari from Goldman Sachs. Please go ahead.

Yes, hi. Thank you. Thank you for the opportunity. I do want to ask about the sale and the module business. The profitability currently is, of course, phenomenally pretty high. And I understand many of the other companies have not been able to ramp up their sale plans With a good yield on time, but how do you see the sustainability of these margins, let's say, beyond next 6 to 12 months? And a connected question will be for your rooftop solar business margins as well. How much of your rooftop solar margins are currently benefiting from this policy support of the ALMN requirement for the sales? Because you have your own sales, so probably that positions you to make a higher margin. How much of advantage strength is because of this benefit and how do you see the durability of this advantage if the cells become more widely available in the market. Thank you.

Very short answer for your long question and this will be much much better going forward. Once we have learned how to run the plant, it will only improve, it will not become worse.

Understood. Thank you.

Thank you. We'll take our next question from the line of Girish Achipalia from Morgan Stanley. Please go ahead.

Thanks for the follow-up. If you can just help us, currently, how's the Indonesian law situation evolving? Have they levied the export tax, and who's kind of bearing it because of the market realization? I mean, are you passing it on? Are the producers taking some impact on the margins? How is it going through NQ4 now?

There is no impact. At least we have not heard or seen anything. So we are not expecting any impact.

Okay, sir. Thank you.

Thank you. Ladies and gentlemen, we'll take that as the last question for today. I would now like to hand the conference over to Dr. Pramir Sinha for closing comments. Over to you, sir.

Thank you, everyone. During the last one, we heard a lot of questions on renewables, but very few questions on distribution. I think we had taken all of you to measure and shown you the type of work and the phenomenal improvement that has been there. You need to consider it because there are not many players in this country who have this sort of skill set, knowledge, and experience. Considering that lot of distribution opportunities will come in future, I think suitable justice should be done with distribution business in your analysis. So please consider that also. You should not just get carried away by a few areas where there are too many players, and I think margins are a challenge. With that advice, I would like to close. Thank you all. If you have any queries, please connect with Anshul and Kasturi And any questions you have, please ask them. We'll try to respond to you. Thank you.

Thank you, sir. On behalf of Tata Power Limited, that concludes this conference. Thank you for joining us.

Imanar Disconnect Your Line.