Tata Power Q2 profit rises 33% to ₹1,652 cr; ₹11,871 cr project approved | Company Results

Tata Power on Wednesday reported 33 per cent year-on-year (Y-o-Y) growth in profit after tax (PAT) at ₹1,652 crore for the second quarter of FY27 from ₹1,245 crore last year. Revenue rose 26 per cent to ₹19,886 crore during the quarter.

For H1 of FY27, the company reported net profit of ₹3,053 crore, up 22 per cent Y-o-Y, and revenue grew 17 per cent to ₹38,784 crore.

The quarterly performance was supported by growth across generation, renewables, transmission and distribution, the company said in its exchange filing.

“Regulated and long-term contracted businesses accounted for an increasing share of earnings before interest, taxes, depreciation and amortisation (Ebitda), strengthening earnings resilience and providing greater predictability and visibility of cash flows and profitability,” the company said.

Tata Power installed 765 megawatts (Mw) of renewable energy capacity in the first half of the current financial year, taking the total installed capacity to 8.6 gigawatts (Gw).

Improved profitability was driven by utility-scale projects, increasing rooftop solar adoption and solar manufacturing delivering robust margins, it said.

The company produced 0.9 Gw of solar cells and 1 Gw of solar modules in the second quarter ended September 30.

Its overall investment during the first half of FY27 stood at ₹10,000 crore across segments.

The company’s board has approved an investment of ₹11,871 crore in the 1,800 Mw pumped storage project (PSP) at Shirwata, Maharashtra, chief executive officer (CEO) and managing director (MD) Praveer Sinha said.

The project will be financed through 75 per cent debt and 25 per cent equity.

“This will be used for bundling our renewable projects under the Renewable Energy Round-the-clock (RE-RTC) project and also for supplying some power to either state discoms or central RE agencies,” he said.

Sinha added that the company expects the zero date (of the project) to start from January 1, 2027, and “we will have 51 months to complete it.”

Commenting on the ongoing legal dispute with Kleros Capital and the court case before the Singapore International Commercial Court (SICC), Sinha said the company has appealed against the order in the Singapore Court of Appeal. It is listed for hearing on January 19, 2027.

“We strongly believe that we have a good case, and our legal team has put together a very strong appeal before the Supreme Court,” he added.

Meanwhile, Kleros has been looking to enforce the order in Singapore by trying to take over the shares of Tata Power’s two Singapore subsidiaries. “Those shares, in any case, are pledged with the banks, and the company will have to approach them,” he said, adding that till the appeal is ultimately finalised, there is no need to take any provision in the company’s books or take any impact of that order.

The company informed its Mundra plant is operating at full capacity and is currently running under Section 11 till December end. It is advancing discussions with multiple states to secure Supplementary Power Purchase Agreements (SPPAs). “We have signed SPPA with Gujarat which is already filed in the regulatory commission and we expect the approvals shortly. We expect at least two more states, Rajasthan and Haryana, to sign before December end.”

On the progress made in its plan for an ingot and wafer manufacturing facility in Gopalpur, Odisha, Sinha said that Tata Power has obtained all the necessary approvals. “This month, we will start the work on the site. Already preliminary work of filling and cutting has started but the real construction work will start later this month. We expect it to be ready by March 2028,” he said.

Sinha also said many large tenders of battery energy storage systems (BESS) have been announced in the last four to six weeks and the company expects to participate in those projects. “We are examining that especially in plants where we have enough land for putting up a BESS plant,” he said.