Tata Power reported its highest-ever quarterly profit for the September quarter of FY27, with consolidated net profit rising 33% year-on-year to ₹1,652 crore. The strong performance was supported by growth across its renewable energy, power generation, transmission and distribution businesses, highlighting the company’s expanding presence in India’s clean energy sector.
The Tata Group company reported a consolidated profit after tax (PAT) of ₹1,652.04 crore for the second quarter, compared with ₹1,245.39 crore in the corresponding period last year. Revenue increased 26% to ₹19,886 crore from ₹15,769 crore a year earlier.
The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 5% to ₹4,245 crore against ₹4,032 crore in the year-ago quarter. Profit before exceptional items and tax increased around 23% to ₹2,061 crore.
The quarterly performance reflects contributions from several business segments, including conventional power generation, renewable energy, solar manufacturing and electricity distribution. The company said its regulated and long-term contracted businesses were also providing greater stability to earnings and cash flows.
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Tata Power records strong first-half performance
The company also delivered its strongest-ever first-half performance in FY27. Consolidated net profit for the six months ended September stood at ₹3,053 crore, marking a 22% increase from ₹2,508 crore in the corresponding period last year.
Revenue for the first half grew 17% year-on-year to ₹38,784 crore, while EBITDA increased 7% to ₹8,494 crore.
Tata Power invested approximately ₹10,000 crore during the first half of FY27, marking its highest-ever capital expenditure for a six-month period. The investment was directed towards renewable energy projects, transmission infrastructure, pumped storage facilities and electricity distribution networks.
The company is continuing to expand its clean energy portfolio as India looks to increase renewable power generation and strengthen its electricity infrastructure.
Renewable energy and solar business drive growth
Renewable energy remained one of the key contributors to Tata Power’s quarterly performance. The company added 765 megawatts (MW) of clean and green generation capacity during the first half of FY27, taking its total installed clean and green capacity to 8.6 gigawatts (GW).
Its utility-scale renewable energy portfolio reached 7.2 GW, comprising solar and wind power projects. The company also has a renewable energy project pipeline of around 4.9 GW, indicating further opportunities for capacity expansion.
Solar manufacturing continued to support business growth. During the September quarter, Tata Power produced 0.9 GW of solar cells and 1 GW of solar modules. Its manufacturing operations benefited from an improved sales mix and a module yield of 97%.
The rooftop solar business also recorded healthy activity, with installations reaching 426 MWp during the quarter. Its cumulative rooftop solar installation capacity crossed 5.1 GWp.
The growing adoption of rooftop solar systems among households and businesses is expected to remain an important opportunity for the company, particularly as consumers look for alternatives to conventional electricity sources.
Tata Power is also expanding its battery energy storage capabilities to support the integration of renewable energy into the electricity grid.
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Power generation and distribution businesses strengthen operations
Tata Power’s conventional power generation business also contributed to the results. Its generation assets maintained plant availability of around 90%, reflecting improved operational performance.
The company’s Mundra power plant continued operating at high availability during the quarter under the extended Section 11 directive. Tata Power is also holding discussions with multiple states to secure supplementary power purchase agreements for the facility.
In the transmission and distribution segment, the company continued to expand its infrastructure to meet rising electricity demand.
Its transmission network reached 7,894 circuit kilometres under operation. The company also commissioned the Khurja-Jalpura 400-kV transmission line and associated substation, strengthening electricity transmission capacity.
Smart meter installations across its distribution companies crossed 60 lakh, supporting improved monitoring, billing and electricity distribution.
The company has also been investing in digital technologies and artificial intelligence to improve operational efficiency, predictive maintenance and customer services.
Tata Power shares gain after Q2 results
Tata Power shares gained around 2% in intraday trading on November 12 following the announcement of the quarterly results. The stock touched an intraday high of approximately ₹367 on the NSE before trading around ₹364 in early trade.
The earnings announcement attracted attention from brokerage firms, although their assessments of the company’s growth prospects and valuation differed.
Motilal Oswal maintained a Buy rating on the stock with a target price of ₹440. Elara Capital also retained its Buy recommendation, setting a target price of ₹485, citing renewable energy expansion, solar manufacturing and improving business performance.
Citi maintained a Buy rating with a target price of ₹525. However, JPMorgan retained a Neutral rating with a target of ₹423, while CLSA maintained a Hold recommendation with a target price of ₹415.
Analysts identified renewable energy capacity additions, solar manufacturing profitability and the company’s expanding regulated businesses as important growth drivers. However, execution delays, valuation concerns and pressure on solar manufacturing margins remain areas to watch.
The company has retained its FY27 capital expenditure guidance of ₹25,000 crore and is targeting the commissioning of 2.5 GW of renewable energy capacity during the financial year.
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Management focuses on long-term energy growth
Commenting on the results, Tata Power CEO and Managing Director Praveer Sinha said the company had achieved its highest-ever quarterly profit, supported by contributions from its different business segments.
He highlighted the importance of renewable energy, rooftop solar, energy storage and customer-focused solutions in strengthening the company’s growth outlook.
The ₹10,000-crore investment during the first half, he said, would help accelerate renewable capacity additions, transmission expansion, pumped storage development and digital distribution infrastructure.
Separately, Tata Power announced the appointment of Sanjay Banga as its next CEO and managing director for a five-year term beginning May 1, 2027.