The company’s Q4 FY2025-26 results showed an 8 per cent rise in consolidated net profit, aided by reduced fuel costs and overall expenditure.
TATA Power is actively pursuing nuclear energy expansion through small modular reactors (SMRs), each with a planned capacity of 220 megawatts. The company is currently preparing feasibility studies and detailed project reports, which are expected to be finalised within six months.
These reports will form the basis for regulatory approvals and site clearances. Discussions are ongoing with three states to secure permissions for water and soil testing, which are critical prerequisites for nuclear project development.
The company is also coordinating with the Nuclear Power Corporation of India Limited (NPCIL), reflecting the importance of collaboration with established state-owned nuclear institutions.
Chief Executive Officer and Managing Director Praveer Sinha confirmed during a post-earnings call that TATA Power is working on feasibility reports and DPRs, with the expectation of completing them in the next six months.
He emphasised that the company is committed to advancing nuclear power projects, which align with India’s broader energy security and clean energy transition goals. The engagement with NPCIL highlights TATA Power’s strategy of leveraging institutional expertise while exploring private sector participation in nuclear energy.
Small Modular Reactors offer several advantages compared to traditional large-scale nuclear plants. They require lower upfront capital investment, can be assembled more quickly due to modular construction, and have reduced fuel requirements.
SMRs typically need refuelling only every three to seven years, enhancing operational efficiency. Their passive safety systems allow automatic shutdown without manual intervention, significantly improving safety standards.
Furthermore, SMRs are versatile, suitable for deployment in remote areas, and can augment existing power plant capacity, making them an attractive option for India’s growing energy demand.
India’s nuclear capacity currently stands at under 9 GW, with plans to expand to around 22 GW by 2031-32. Globally, India’s nuclear capacity is modest compared to countries such as the United States, France, and China, which operate far larger fleets of reactors.
However, India’s recent reforms, including amendments to the Atomic Energy Act, have opened the sector to private and foreign investment, creating opportunities for companies like TATA Power to participate in nuclear power generation. These reforms are expected to streamline licensing, fuel sourcing, and approval processes, thereby reducing barriers to entry for private firms.
In addition to nuclear expansion, TATA Power reported strong financial performance in the March quarter of FY2025-26. Consolidated net profit rose by over 8 per cent to ₹1,415.52 crore, compared to ₹1,306.09 crore in the same quarter of the previous year.
Total income declined to ₹15,455.48 crore from ₹17,446.95 crore, but the company managed to reduce overall expenses to ₹14,876.50 crore from ₹16,179.77 crore. A significant reduction in fuel costs, from ₹3,720.35 crore to ₹1,336.29 crore, contributed to the improved profitability. The company also noted limited curtailment issues at two locations, though details on capacity or location were not disclosed.
TATA Power’s nuclear push represents a strategic diversification of its energy portfolio, complementing its established presence in renewables and conventional power.
By pursuing SMRs, the company is positioning itself at the forefront of India’s nuclear modernisation, which is expected to play a vital role in achieving long-term energy security and meeting clean energy targets.
Agencies
