Tata Power’s quarterly profit jumps nearly 49%

Tata Power has reported a nearly 49% increase in its consolidated net profit for the second quarter of the financial year 2026-27, supported by a recovery in electricity generation at its Mundra plant and growth in its renewable energy business.

The company posted a consolidated net profit of Rs 1,366 crore for the July-September quarter, compared with Rs 919 crore in the corresponding period of the previous financial year, representing a year-on-year increase of 48.6 per cent.

Revenue from operations rose 26.3 per cent to Rs 19,636 crore, compared with Rs 15,545 crore in the year-ago quarter. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 11.1 per cent to Rs 3,667 crore from Rs 3,302 crore.

The improved performance was supported by a recovery in electricity generation at the company’s Mundra power plant and growth in its renewable energy business. The Mundra plant’s improved operations contributed to the company’s overall quarterly performance after facing operational challenges.

Tata Power also benefited from expansion in its clean energy operations, including renewable energy projects and solar manufacturing. Its renewable energy business has been an important contributor to the company’s growth as it expands its presence across solar power generation and related infrastructure.

However, the improvement in net profit was accompanied by a contraction in operating margins. Tata Power’s EBITDA margin declined to 18.7 per cent from 21.2 per cent in the corresponding quarter last year. The company also recorded a one-time gain of Rs 119 crore during the reporting quarter.

For the first half of FY27, Tata Power’s consolidated net profit stood at Rs 2,542 crore, compared with Rs 1,979 crore in the corresponding period a year earlier, marking an increase of 28 per cent. Revenue from operations during the six-month period rose 15 per cent to Rs 38,687 crore.

The quarterly results underline the contribution of the company’s conventional power generation business as well as its growing renewable energy operations to its financial performance.