Thank you for joining the call. I'm joined with my colleagues over here, Sanjeev Churiwala, CFO, Mr. J.V. Patil, Financial Controller, Mr. Rajesh Lachhani from investor relations, and other team members from our finance and investor relations team. As all of you are aware, last nine months, the demand of power has gone up, but not to the extent what we have witnessed in the previous few years. But we do find that in the last one month, the demand of power has increased, and we are expecting that this year, the summer will be much more intense compared to the last year, where we had a very long monsoon. Considering that, we do expect that there will be a peak demand of nearly 265 GW- 270 GW. Already today, it was more than 230 GW, and summer has still not started.
So we do expect huge demand of power in the coming year. Secondly, during the recent budget, the Finance Minister came out with a lot of initiatives and programs in the power sector. Some of the important ones are that the budget for PM Surya Ghar has been enhanced for this year as well as for next year, and that gives us a lot of opportunity to increase our rooftop program, especially the PM Surya Ghar program, in many of the states where we have tied up with them for taking it forward. The second big announcement by the Finance Minister was about nuclear power, that the Nuclear Power Act will be amended, which will allow private sector investment in nuclear power. As we have shared with you earlier, we will definitely be exploring this opportunity as and when it comes.
We are expecting the government to announce the amendments to the Act, as also the policy wherein we will get an idea of what sort of foreign investment, what sort of foreign technology, what sort of Indian technology will be provided, and also issues about sourcing of fuel and how to reprocess the spent fuel and storage of the fuel. So many of these are still gray areas, and we expect that in the coming months, more details will be shared, and at that stage, we will be able to come out with our action plan on it. Of course, as an initial comment, we are very keen to pursue this.
We strongly believe that this will support us in our clean energy initiatives, and we can use this along with our renewable power to supply 24/7 clean power solutions to our customers, both utility scale as well as the C&I customers. We have already shared with you the performance highlight of the company. This is the 21st consecutive quarter in which we have shown a PAT growth, and this demonstrates the strong performance of each of our businesses, and each one of them is now getting consolidated and stabilized in terms of their performance. Our PAT for the quarter has gone up, our EBITDA has gone up, and both have also gone up on a cumulative basis in the last nine months, and this trend will continue going forward. We have, during this quarter, commissioned a number of projects.
These are large renewable utility scale projects for ourselves, as well as a large number of projects that have been commissioned for third parties, and those details have again been shared with you, and this has supported us in showing very good performance of our renewable business. Our EBITDA for renewable business itself has gone up by 38%, as also our PAT has gone up for renewable business in this quarter as well as for the full nine months. During this quarter, we have seen a huge amount of growth in our rooftop business.
For the first time, we crossed in the quarter INR 500 crore of revenue with a very healthy EBITDA and PAT, and you will see this continuing in the subsequent quarters because the benefit of creating the whole supply chain arrangement, the benefit of having large channel partners and our reach into the market, and the product quality and service that is being offered is being appreciated by the consumers, and we actually get a premium in the market for the supplies that we are making. Our cell plant, which we have taken many of you and shown, our cell and module plant are performing very well. Our module plant has got the record production done in the last quarter, as also in the nine months, and our cell plant, which was commissioned in the month of November, the first 2 GW, has now more or less stabilized.
The second 2 GW also has been commissioned in January and is under stabilization process, and we expect that within February, it will get stabilized and we'll be able to produce at full capacity during the next financial year. We have also seen our performance in our distribution business stabilizing. Our resource operations have stabilized, and we are doing very good work in terms of our billing efficiency, collection efficiency, and AT&C loss reduction, and the performance in the third quarter has been much better than compared to last year and the previous quarter, and also, the fourth quarter will be again much better than the third quarter and second quarter, and also compared to last year because many of these things, initiatives in terms of technology, in terms of our interventions which we have carried out, will start showing better results.
Our transmission business, again, we've done a huge amount of work. We won four bids and construction activity of all those projects are going on, and we expect that in FY 2026, all of them will be completed, excepting one, and the benefit of that in terms of revenue, EBITDA and PAT will start coming from FY 2026 onwards. During the last nine months, we have spent a CapEx of nearly INR 12,000 crore, which was the total CapEx that we spent in the previous financial year, and we have plans to spend another INR 10,000 crore in this quarter, so we'll have an end-of-the-year total CapEx of nearly INR 22,000 crore.
These are all in the various projects that we are implementing, whether it is in the renewable space, or it is in group captive, or it is in the manufacturing of 4 GW, or it is in our transmission and distribution projects. Many of them are based on ROE basis, so once implemented and capitalized, we'll start getting the return on them. As also, those where we have bid out, we will start getting returns on them also based on the returns that were projected at the time of bidding. Our debt today is our net debt is about INR 44,700 crore, and our debt to equity is 1.1:1, and our net debt to underlying EBITDA is less than 3x.
So in terms of the financial metrics, we continue to be very good, and we do expect that we will maintain the discipline of meeting the financial metrics based on the performance of the company. As we move forward, we are committed to our overall goal that we will achieve 70% of clean energy by 2030. We are already at 43%, and with the various projects which are under implementation, we should be in a position to meet those targets. I now look forward to have your questions, and with me is the company CFO, Sanjeev Churiwala, and we'll try to respond to most of them. I now request Darwin to open the Q&A, open the floor for Q&A. Thank you.
Certainly, sir. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. We have the first question from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Good evening, sir, and thanks for the opportunity. So my first question is on the nuclear power business. What is your expectation of the new business model? Is it fair to expect that this will be a cost-plus kind of model? And the related question is that, do you think that timeline of this small modular nuclear reactor can be reduced to three to four years?
We still do not have details, but whatever little that we know of it, the whole process of approval, and these are nuclear plants, so they have a very stringent requirement of getting approval, not only from the forest and the environment aspect, but also from the Atomic Energy Regulatory Board. It all takes about 24 months, and thereafter, the construction period is four to five years. So it's a little longish, but I can assure you that these projects are today becoming very common in various parts of the world. And I think with many of the new technologies coming in, we should be in a position to implement it much faster in the country. But these are very early days. Let's get more details, and then we'll be able to share with you the real timeline and the implementation plan.
Understood. My second question is, have you heard anything incrementally on the approved list of models and manufacturers list? Is the list being prepared, or do you think it will get published over maybe with a delay of four to six months? And how do you think about implementation of this?
So already, the approved list of module manufacturers is already in place since last year, 1st April 2024, and the approved list of cell manufacturers will get implemented from 1st June 2026. And I think it has already been extended. Earlier, for cells, it was 1st April 2026. Now, it has been extended to 1st July 2026, and I don't expect that this will get extended beyond that.
When do you expect the first list of the approved list to get published and notified?
I think they have already started visiting various of the plants, and the ministry is carrying out the due diligence exercise. They'll definitely do it much before the 1st June 2026 timeline.
Understood. My last question is, what is revenue reversal in EPC business during the quarter? Can you please help us?
Okay. I think this is more about cleaning up the accounts. As you are aware, the EPC business, which was a separate legal entity, has now become an entity. Per se, the intercompany billing is not happening, and as such, the top revenue is lower because we have kind of trued up about INR 300-odd crore to reflect the correct accounting principles post-merger. That has no implications on the profitability.
But the margins are looking very high, sir, 16% in the quarter. Is that, I think ?
Yeah. Optically, that's correct because the top line is lower, but the profitability still continues to be there as is. The best way is to look at the year-to-date number, which reflects the right position, and we are kind of in the range of 5%-7% on EPC margin, which has always been our guidance.
Understood. Thank you, and all the best. Thank you. I'll take it offline. Thank you.
Thank you. The next question is from the line of Sumit Kishore from Axis Capital. Please go ahead.
Thanks for taking my question. The first one is on the renewables cluster result. The elimination within renewables for revenue at about INR 1,806 crore appears to be higher than the solar EPC or the TP Solar revenue for the quarter. Even in EBITDA, the elimination number is higher than the entire EBITDA contribution of TP Solar. How should we read these elimination numbers, and what was the third-party sale that you did in TP Solar during the quarter? So if you could sort of explain the breakup of this elimination and how should we read it?
Yes, that's a good question, Sumit. I think let me kind of simplify and answer your question so that it helps everyone else. Higher the level of internal work that happens, higher the elimination. For example, this quarter, our cell modules have gone live, and we have the modules also been going live. Full production is happening. These modules and cells, by and large, is sold internally to TPREL, and that gets eliminated. Similarly, all the EPC in-house work that we do, the profit also that gets eliminated. Now, elimination, we have to unfortunately only show in one line because otherwise, there will be multiple eliminations shown at each of the levels that might not be useful.
So if you see the investor deck that is circulated, there is a detailing around that, and I think you can see slide number 53, which would give you the detailing of the requirement. With respect to how much of the work was internal and how much was third-party, we can possibly send you out separately.
Okay. Just to follow up on this, till the ALMM II is implemented by June 2026, is there an opportunity to make higher profit by selling your backward integrated modules, which have cells made in-house, to third-party customers rather than using them in-house?
Yeah. As of now, a large chunk of this production is tied up for our in-house large-scale projects that we have already tied up. We have a large order book already in position, as well as we have third-party order books that we need to also commission the projects. But yes, going forward, we will be opportunistic to see wherever the opportunity is there, as in the ALMM II taking into sell some of these cells and modules to third party as well. So we will do the balancing act.
Yeah, but we have already got some orders, and they're under execution. We got one order recently, which is for ALMM. Last year, we had got an order for DCR. So as and when we get opportunity, we definitely look at it. And so there will be a mix of supply only of modules. There will be a mix of using it in our own projects. There will be a mix of supplying it for a rooftop and the third-party EPC projects. So we will always be ensuring that based on the production capacity and the type of modules which are required because these modules also are of different capacities and sizes. So they are 540, 570, and 590. So depending upon the requirements, we can manufacture accordingly.
As Dr. Sinha was speaking, you see already those coming in that Tata Power has won solar in the SECI's auction for supplying 400 MW of domestically manufactured solar modules. So very clearly, you can already see that happening next quarter with sale as well as in-house use.
I think I couldn't have expected a faster delivery on expectations. One more question is on the increase in Mundra coal and shipping Q1 FY 2025 EBITDA. What explains that? On the other hand, this gets taken away by the steep drop in others, including Tata Power, Nelco, and inter-segment elimination, which has dropped in Q3 FY 2025 versus Q3 FY 2024. I mean, in general, the inter-segment elimination volatility in quarterly disclosures over the last several quarters has been hampering the predictability or the understanding of Tata Power financials. Some way to remedy that would be very helpful.
Yeah, sure. If I'm speaking, we will definitely see what other things we need to do to try and improve the disclosures. But of course, we have put a complete separate slide on this, which has line-by-items on the additions and the deletions, which kind of gives a better understanding. But coming to your question on the one-off that you see possibly in the current year as well as in the previous year, for our generation business with Thermal and Hydro, we had some one-off upside, which is close to about INR 330-odd crore. Similarly, previous year, we had about INR 311 crore of accumulated dividend from one of our foreign subsidiaries, right? But both of them are getting netted off almost a similar amount.
INR 3.3 billion is what I heard. The one-off.
INR 311 crore.
So in Mundra, is how much?
It's INR 332 crore.
INR 32 crore. Okay. Just one quick question, if I may. The transmission auction bids, as you have shown in your presentation for India, have gone up quite sharply, 2.3x over FY 2024. Tata Power's win of late is still a very small fraction of this opportunity. Is the bidding too aggressive, or the IRR suboptimal, or are you already full in terms of how many you want?
Our total operating line plus under construction is a little over 7 GW, and of course, we are also very selective in our bidding. We don't want to go and bid out everywhere where we think the returns are suboptimal, or we think that currently the geography and the complexities are very high, and the risk could be very, very high, so yes, we have been very selective, but in this selectiveness, we are also trying to see that we only bet for projects where we get good returns.
I meant the transmission auction bids.
I'm also talking about the transmission auction. Our total capacity, speaking exactly. I use the word gigawatts rather circuit kilometers. So about 7,000 circuit kilometers is what we have operational and in pipeline.
Got it. Thank you, and wish you all the best.
Thank you. The next question is from the line of Apoorva Bahadur from IIFL. Please go ahead.
Hi, sir. Thank you for taking my question. Sir, would request some more help on the accounting for solar cell module business, right? How should we think about it, especially say going ahead if once the manufacturing arm starts supplying modules for the rooftop business, then where exactly will you be capturing this profitability both for internal sales and then for external sales, and what proportion?
I will not be able to tell you the proportion right now, but your question is very valid. In principle, whatever is sold outside will get captured in the manufacturing division profitability, and that will fully get consolidated in the Tata Power renewable books as well. Whereas whatever is done in-house would ultimately get eliminated. Since this particular quarter, we are just ramping up our cell production, it will not give a complete true understanding on how this manufacturing and cells profitability will look like. Maybe from next quarter onward, we'll try and bring in a little more clarity on how we kind of do with proper reporting with respect to the investors so you get a better clarity, and what we will do is we'll also not wait for the next quarter.
We will also reach out to you separately, and whosoever wants to have a better understanding as to how this specific accounting will happen.
That will be helpful. Also wanted to check about the stabilization of our cell capacity. Have you managed to stabilize the plant, and what was the output for this quarter?
As I mentioned to you, the 2 GW cell line got commissioned in the month of November. That has got stabilized. It's now nearly at 90% capacity. The second 2 GW got commissioned in January, and we expect that in the end of February, it should get stabilized. So that's the existing plan. The full benefit of operating at more than 95%-98% capacity will happen in the next financial year.
So it will reach there by FY 2026. And sir, where are we using these cells? For our internal projects, or are we selling them to third parties?
I explained to you just now. Again, you are repeating the same question. I told you that there are three ways of using it: third-party sale, third-party EPC projects, our own EPC project, and using it in rooftop.
No, sir. I wanted to check if you can share for this quarter, if you can share where the cells were sold?
Yes, we can provide that to you, sir. Certainly not a problem, but I think it will be better to wait for the results for the next quarter because this quarter's ramping up. It will not give you a complete good representative for your modeling as well.
Understood. Understood. Sir, last question was on the ordering for wind turbines. Have we locked capacity for our complex projects?
So as we had shared with you, 1,000 MW, we had already in fact, 1,100 MW we had already done. Those wind turbines are already under implementation, and all of them will get commissioned in next three months to 12 months. There's another 1.6 GW that we will be ordering. All this ordering will happen in next 60 days.
Okay. Thank you so much.
Thank you. The next question is from the line of Puneet from HSBC. Please go ahead.
Yeah, good evening, and thank you so much. My first question is on renewable. Can you give some sense of what is the capacity installation plan for FY 2026 and 2027?
Could you just repeat your question once again?
Yeah. What is the capacity installation plan for FY 2026 and 2027?
In its continuity and in its presentation. I think we have given that in the November analyst meeting. We have given that details.
Yeah. Individually for 2026 and 2027, if you have?
It's there in terms of.
I think, Puneet, just to kind of recall what was discussed and presented, normally what we have said, our intention is to have about rough definitely 2 GW of installation every year, and it's 2.5 GW every year. Of course, we cannot as of now give you specifically what we are doing next year and the year after, but indicatively, this is the number that we're targeting at.
Yeah. So what's resulting in a little slowness here, right? I mean, you're probably going to do what is the plan for Q4, but it looks like you might just see about 1.2 GW, 1.3 GW. Any thoughts on how to think about what's driving this slowness currently?
So we have already this year added 865 MW, which is highest among all the renewable players in the country. And we have a large number of projects lined up. I think about 600 MW is lined up in this quarter. And then we expect also projects for third-party EPC to be implemented in this quarter. So all those details have been shared with you. And as Sanjeev mentioned, in FY 2026 and FY 2027, about 2 GW-2.5 GW of renewable projects, which will be a mix of solar and wind that will be implemented.
Okay. Understood. And on TPDDL side, there seems to be a little softness in profitability. Anything to note?
It is doing consistent profits this quarter also. If you compare to last year, it has done a little bit higher. So it's a very consistent performance that has been shown by TPDDL.
Okay. And lastly, if you can give some update on the pumped storage project. Have you placed an order? What is the progress there?
The pre-project activities have already started, and basic civil work has started. The order for civil will be finalized within this month, and we also expect the last of the clearances. Full-fledged work will start from next month. The work in the hydro project in Bhutan has started in January, and it is going at full pace at all the locations, that is the pump house as well as the dam, as well as the surge shaft. I think we are all set to complete it within the target timeline. So also, the pumped hydro will finish it in the target timeline that we have shared.
So specifically for Bhivpuri, which was the first one, is financial closure done now?
We have already tied up money for the initial work, and the financial closure will be done by next month.
By next month. Okay. That's all. Thank you so much, and all the best.
Thank you. The next question is from the line of Ketan Jain from Avendus Spark. Please go ahead.
Thank you, sir. Good evening. So my question is on the UP discom bid. If you can provide us with some flavor on what's the timeline of the bid, and will we be bidding for it, and something about that?
I also do not know the timeline. When I come to know, I'll let you know. But what I can tell you is that there is an intention by UP to go ahead and do a public-private partnership for two discoms. We are actively pursuing that, or we will actively pursue that because we have excellent experience of carrying out similar type of work in Odisha, where we were able to cater to both urban and rural consumers, which no other utility has experienced in the country, and as and when the bids come, we will definitely bid, and we expect that we'll be able to be successful in these bids.
Thank you. Thank you.
Thank you. The next line of Satyadeep Jain from Ambit Capital. Please go ahead.
Hi. Thank you. So first, I want to understand, are, all these eliminations. You reported separately EBITDA for the module and cell line. If I look at the EBITDA, it seems like for EBITDA for cell also, it is assuming it is sold for DCR, looking at the margin. So whatever you're doing internal or external, it seems to be at arm's length. But when we look at YoY, if I strip out EBITDA from module and cell line, there is no increase in overall RE EBITDA. What could be, which is what I think some of the earlier questions were also trying to understand. So I just wanted to see why is there no YoY growth in the overall RE business if we take out cell and module line?
I think the cell and module line is an integrated part of the overall business. Unlike many other businesses which will set up a cell or a module only to cater to third parties, our cell and module is part of our integration plan that caters to a large extent of our in-house requirement with respect to a large-scale development that we do, and as well as the third party, right? So yeah, to that extent, the production of cell, which is largely around DCR, has gone to in-house production as well, as well as some content of the third party. But your question is, can we strip that and see separately? I don't think that will have any useful purpose by stripping it out separately. But also a question different.
No, I was trying to understand if you look at cluster-wise performance for the entire RE business. If you look at YoY, increase in EBITDA for that business is about INR 230 crore-INR 240 crore, which is the EBITDA for the module and cell line. So the entire EBITDA increase YoY is because of module and cell line. So why are the other businesses why is there not generally, I would have assumed the EBITDA increase would be higher than that contribution from solar, cell, and module. There would be higher generation EBITDA, higher EPC. But on a cluster-wise, the YoY increase is only INR 230 crore-INR 240 crore.
Yeah. So we'll have to see the elimination because when you look at the separate line, those are basically gross contributions on the respective units, right? You all put it together, and then you have to eliminate the cross-unit billing that is happening. So that way, it's a bit tricky. But then on a YoY basis, as compared to almost INR 750 crore of EBITDA that we gained previous year, this quarter, we are almost very close to INR 1,000 crore. So to that extent, there has been about INR 240-odd crore of increase in the EBITDA, right? And also, if you look at slide number 54, you will see the renewable separate businesses coming and the elimination as well. But my sense is to get very specific to what you are needing, why don't you get in touch with us, and we'll help you clarify that better.
Sure. Sure. So secondly, this nuclear opportunity, I wanted to understand. If I look at the pre-tender bid which is out there from NPCIL, it seems like this is mainly targeted at high-energy intensive industries like steel, cement, and data centers, which these customers put up the capital, and the asset is actually owned and operated by NPCIL. So how does a developer fit into this picture? Is it going to be similar to a group captive scheme which we have for RE, where the customer puts up 26% equity? Is that the understanding? And then how initially, if you look at evaluate this, I know it's far out in the future, but in terms of economics and all, any preliminary idea how this looks like?
I think the bid document which came from NPCIL was before the announcement by the finance minister. And I am not very sure whether it will go through now in the same circumstances because at that time, they had no plans of private sector being a participant, accepting that they give the money, and the nuclear island will be owned and operated by NPCIL. So I think the whole arrangement is going to change now with the announcement from the finance minister. And I think we should wait and watch for what eventually because now the game has changed fully because they'll allow private sector to come in, and what sort of arrangement it will be there, whether they will allow foreign participants, foreign technology, or it will only be Indian technology.
So, I think let's wait and watch and get more details before we are able to take a call on it.
Any sense on economics at all, or too early to say?
Economics will be very good, but a little early to say. Whatever initial numbers that we have seen, it will be very good.
Just one more question, if I can squeeze on the EPC business. There was no new order in flow for third-party utility, including the captive book. What is the strategy there? And on solar rooftop, you're assuming 3 million households in the next year. That seems like a big step up from where you are, both in terms of market share and overall opportunity. So how much is the solar rooftop? As a country, what is the execution so far? What is the market share for Tata Power? And what makes you think that this 3 million is achievable? So two-part question on the overall third-party utility EPC book, and then on rooftop solar.
So we have a very large third-party EPC book, including DCR modules where we have to supply. Most of them are getting executed in this year, and part of it will get executed in next financial year. We have undergone a change in the way we were doing EPC. We now do pure EPC without land. Earlier, we used to acquire land also for the EPC projects. So we do not do that. Secondly, we wanted to execute all these projects before we take more orders and plan as a part of our order book. We already also have now large in-house order book where we have more than plans of adding more than 2 GW per year. So we will be very cautious and careful in terms of taking third-party EPC orders.
We will more concentrate on our own EPC projects under our group captive as well as utility scale. And secondly, we also have opportunity to sell modules, especially the DCR modules, where we can get better margins. So we will decide on what is the mix of third-party EPC, our own EPC, and the module supplies, and then take a call.
Request, if you could refer to slide number 32 of the uploaded deck that has a good amount of details of the breakup.
This is on the PM Surya Ghar and rooftop opportunity.
Yeah, 37. Slide 37 as well. 32 and 37.
But FY 2025 so far, that in terms of overall rooftop execution in the country and how much, it seems like a big step up if you look at your own target for 3 million in the next few years.
See, this was announced by the Prime Minister in January, and it took time for all the state governments and others to come up to speed. So I think FY 2025, that sort of enabling provisions have not happened in some of the states. The state government support orders have only come in November or January. So let's see whether the various entities and also the state governments have created the necessary infrastructure for executing these or not. And I think that has been done very well. You will see a great amount of push in the coming year when many of these where people have registered will get executed in the coming years.
Thank you so much, and wish you all the best .
Thank you. The next question is from the line of Anuj Upadhyay from Investec. Please go ahead.
Yep. Thanks for the opportunity, sir. And many of my questions have been answered. It's just a follow-up question which I have on two aspects. One is your renewable generation business. In spite of 25% of capacity addition from 4.2 GW to 5.2 GW of commissioning, the profitability growth hasn't been much. I understand the PLF went down, but it was marginally by 60, 70, or 80 basis points as such. So are these profitability numbers which have been reported, are they run rate numbers, or is it just a timing issue which has led to an underperformance in terms of profitability?
To your right, there are two points to it. Definitely, this is not a run rate. Quarter three normally are weaker quarter for every solar management company because the radiations are low, and to that extent, the average radiation that we kind of factored in this time was also low, and that, to an extent, has impacted some of our margins, and of course, there was slight delay in some of our projects because of various reasons that have been factored into the PAT, but going forward, that's not what we decide. The run rate will definitely be much better than this. You can refer to slide number 62 of the uploaded deck that has the breakup of all these elements.
Also, if you see on nine-month basis, the generation is much higher than compared to last year. So what we have to see is because also of the weather pattern change. This year, the monsoon was much longer and was right up to October. So many of the solar plants could not generate which they could have otherwise done. So I think what is important is to see a 12-month rolling plan rather than just going on a quarter-to-quarter basis.
Fair point, sir. Secondly, on the nuclear segment, any ballpark figure which you can throw on the CapEx per megawatt on this newly added or newly planned nuclear capacity and what anticipated tariffs per unit put in perspective? I know it's pretty much it, but still, any approximate figure would be helpful, sir.
I cannot throw any figure on this. So let's see.
No problem.
See, what happens is that these are all dependent on from where you are getting the technology, what is the capacity of the plant, and what is the efficiency of these plants. The efficiency of these plants goes from 70%-90%. So it all depends on what is the commitment that the supplier or the technology partner is giving into it. And secondly, apart from the CapEx, what is important is this is the sourcing of the fuel. So from where you will source uranium, what is the cost at which is it on a bilateral government-to-government basis? So there are a whole lot of unknown things which are there at this present. And I would not like to hazard a guess on these numbers at this stage.
Okay. Any update on the Section 11 continuation for Mundra plant?
As I mentioned to you that there is a huge demand of power. And I expect that to meet this additional demand of power, all the imported coal-based plants will be asked to continue operations. And we do expect that government will take a call on this in the later part of this month.
Okay. And just a last one, sir, on the debt across WREL project. It has been zeroed in the current quarter. That has been completely paid off, or it's been realigned to some other segment?
Yeah. So about 25 companies have now been merged with TPREL. And that merger is effective from 1st of April. So the financials that you see is of a merged entity.
Okay. So the WREL debt has been now moved to TPREL this quarter. Am I right, sir?
Yes. So WREL is basically a Genco generating company. And as part of a strategy, we have moved it and merged it with TPREL, which also has a large portfolio of Genco. So we didn't want to have separate SPDs for separate Gencos. So most of them are merged together. WREL itself, what about 2.2 GW companies? So if you see slide number 66, you kind of find the details between quarter three and quarter two. Quarter two of FY 2025 versus there, which will kind of give you a good reflection of the merged entities.
Very good. That's helpful. And thanks for your perspective. Wish you the best of luck.
Thank you. The next question is from the line of Rajesh Majumdar from B&K Securities. Please go ahead.
Yeah. Good evening, sir. And thanks for the opportunity. So my first question, I may have missed this earlier, but what is the impact of the APTEL claim on the third-quarter results from Mundra? Did you give a number? I may have missed it. You mentioned in note number three on the APTEL order and some claim provision has been made in the third quarter. What is that figure?
Maybe I will not have it outright, but if you like it to ask separately or again, that is Rajesh will provide you with details.
Okay. So it is not INR 322 crore, as you mentioned earlier on some figure. This is not the same number, right? Not INR 322 crore.
No. So there's a combination of things over there. Your question is very, very specific to a litigation, right? So we want to be very clear on what we're providing you.
Okay. So I just wanted to assess the impact of that as a one-time on the standalone performance has been significantly higher this quarter.
No, because I think I had mentioned earlier that there is a one-off now, which is INR 332 crore. And there was a one-off earlier of INR 311 crore. So by and large, that one-off gets netted off. So per se, the number that you see is already a like-for-like number.
All right. So it's netted about INR 20 crore only. That's it?
Yes.
Okay. Thank you. My next question is on the Odisha Discoms. If you look at the nine-month run rate of the Odisha Discoms, we are going at a run rate much significantly lower than last year. And at the same time, last year, we were having a run rate of nearly somewhere around INR 200 crore. And now it's about INR 150 crore at the PAT level. So we had a target of hitting a INR 250 crore kind of PAT level in the discoms. Except for CESU, all the other I mean, South and West are particularly lagging. Is there any reason for this? And do we see some kind of change in these numbers?
What typically happens in Odisha or has happened in the last year, the first quarter, we could not do much because there were elections in Odisha and because of that season, a lot of action on building collection could not be done. It has caught up in the last quarter, and the last quarter, that is the present quarter, you will see substantial improvement on building efficiency, collection efficiency, which has an impact on the AT&C. So we'll definitely do much better than what you see now, and there will be substantial improvement going forward.
And secondly, sir, are you bidding for any other discoms in terms of all the opportunities that are coming up now in India or what the finance minister also spoke about? Any circles that you're bidding for which could be there in the near future?
We are definitely looking at opportunities. Bids have not come. So as and when the bids come, we'll definitely be looking to bid very aggressively and take fewer bid discoms.
Just on this note, could you break up your CapEx, say, for the next two, three years into the different areas? How much will be from the own generation? How much will be for other things and so on and so forth? The CapEx breakup of, say, roughly INR 20,000 crore per annum that you've outlined?
I think we have shared it earlier in our analyst presentation. Rajesh will be able to mention to you the slides a bit. If you see slide 43 of the analyst presentation, you'll be able to get the full details. It brings out everything of where in that traditional generation, pumped storage, transmission, distribution, renewable. Slide 43.
Right. I'll take a look at it. If I could just hazard another question on this regard, is that on the FDRE projects that you've won, are you seeing any traction in terms of the PPA, etc., or do you foresee delays in it? What is your own internal assessment of this segment of the business? Is it going to be a big part of the overall scheme of things, or it's going to be slow, and there are issues with this?
FDRE, I don't think we have any issue around FDRE.
No, we don't have any issue around FDRE.
Where is the PPA? When are the PPAs expected on this on the two projects that you won on FDRE?
The PPA is there. Yeah. PPA is there and PPA is progressing, and I think everything is fine.
Yeah. We had also shared in our December presentation that we have two PPAs for 90% of the project.
So that means 1.3 GW SJVN FDRE is going to get commissioned in FY 2026? Is that correct?
So only the NTPC project is waiting for a PPA, and rest all the projects have PPAs in place.
Okay. Thank you. Thanks so much.
Thank you. The next question is from the line of Mithil Bhuva from unlistedindia.com. Please go ahead.
Yes. Congratulations on the good set of numbers. On the contrary to the peers, I feel the presentation is excellent. I mean, the presentation of the results, hearing breakup of so many companies with excellent presentation. Just I had a doubt on slide number 52. So when we see the numbers for Tata, that is the Delhi Discoms, we own only 51% stake here. But the numbers shown here, the EBITDA and the revenue is 100%, right, actually?
Yes. You are right. It's 100%.
Even in the Odisha Discoms, we own only 51%. So is it kind of a wrong presentation because we own actually only 51% of it? So only half of it belongs to us, right?
So for performance basis, the overall numbers come in, and the minority interest is then eliminated below. So if you really see, whatever is consolidated, we do that. And for each of the points, we've also given a chart to explain our share around that. So I think it's very transparently given as well.
Okay. So the elimination includes those things? I mean, the 51%? No? Right?
No. Because wherever is the subsidiary, of course, the entire thing is getting consolidated, right? It's only in case of joint venture, partly over here, minority interest, we only take that respective share.
Yes. But isn't it kind of wrong presentation because we own only 51% in it, and you're showing the 100% number? So the overall EBITDA number looks bigger, but we own only 51%, actually.
But that's the accounting standard. We have to consolidate if it's a subsidiary for us.
Yes. But in the presentation, at least we can give only the 51% numbers, right? I mean, not according to accounting standards, but at least for the presentation, sir.
Yeah. We can, but that will not really serve any purpose because what happens is the way I would expect the investors to look at it, they think, "How is the performance of the company overall?" and not the performance of the 51% share that we have. So even in the most difficult accounts, very clearly, the profit is kind of attributed, broken up into for the equity shareholders and for the non-controlling interest. That separate breakup is also there in the accounts.
Okay. Okay. So also another question is that are we looking to do any fundraising, equity fundraising to repair high-cost debt or anything for the future big growth? So I mean, our peers have been doing it. That's why.
I don't know about the peers, but we don't have high-cost debt.
The current stock price is good enough to raise funds, right, at lower rates, and to repay the high-cost debt. So isn't it a good opportunity?
The party will thank you for your advice.
We have huge demands. I mean, the retail investors just love Tata Power. So if we can do a fundraising and repay high-cost debt, so just the idea for nothing.
Mithil, we'll have a separate chat come over with coffee during the interview.
Okay. So one more doubt, sir. And the coal mining, are we profitable there? Are we looking to get back to coal plants because our peers have been looking to buy coal plants? So are we looking at the coal and the power thermal business again?
Not sure.
Anything on the acquisitions on the thermal power plants?
I think we are very clearly focusing right now on our energy transition business, and as you have heard earlier, speakers say they want to see more growth happening in the renewable sector, so I think we should focus more over there.
Okay. Okay. So one last question, sir.
Sorry to interrupt, we need to move on to the next.
Oh. Thank you. Thank you.
The next question is from the line of Swati Jhunjhunwala from JM Financial PMS. Please go ahead.
Yeah. Thanks for taking my question. So most of my questions have been answered. Just one on the PM Surya Ghar Muft Bijli Yojana. So just wanted to understand what is the average revenue per megawatt that you are seeing here that you can make, given that we have such a big target of 3 million households? And secondly, what is the kind of IRR you are looking at in this solar rooftop business? Just these two for now.
So basically, the cost of 1 kW of rooftop is about INR 60,000-INR 65,000, depending upon the location. And this is on a sale basis. So that means there is no IRR in this, but there is a profit margin that you have. And those profit margins, we have shared with you in rooftops, different what sort of profit margins we normally get. And then you can see from there. So that's what we are looking at. But the numbers that you typically end up doing are huge numbers. You would do in a year, say, 1 lakh rooftop solar or, say, 3 kW or 5 kW. Then you can imagine the type of capacity add and the type of returns you will get from that.
The numbers that we are seeing and the opportunity that we are seeing for ourselves, based on the agreements or MOUs that we have signed in a few of the states, shows that we will be doing a huge number of such rooftops in the coming years.
Understood. And sir, just one more. So is there any target plan that you have yet decided for how you are going to ramp up to 3 million in three years? Is there any plan there that you can share right now?
Yeah. At least 3 million means 30 lakh in three years, means average 10 lakh per year. It can be more also. So it all depends on how quickly we are able to streamline our processes and implement them.
Understood. Sure. Thanks.
Thank you. We have no further questions, ladies and gentlemen. I would now like to hand the conference over to Dr. Praveer Sinha for closing comments. Over to you, sir.
Thank you all for joining for this analyst call. If you have any more queries, please connect with my colleagues from the investor relations. We have tried to give as much information as possible in our presentations, but we continue to look forward to your comments so that we can further improve the presentation quality, both in terms of content and detailing. And we would be more than happy to connect with you offline also and respond to your queries. Thank you once again for joining for this.
Thank you. On behalf of Tata Power, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.