Tata Power Q2 Results: Profit Attributable to Shareholders Up 48.6%

Tata Power has posted its highest-ever quarterly profit. The Tata Power Q2 results show profit attributable to shareholders rose 48.6% year on year to ₹1,366.11 crore (about US$145 million) for the July to September quarter, as a recovery in its thermal business helped offset a jump in fuel costs and thinner margins.

The Mumbai-based utility filed its consolidated numbers after market hours on Wednesday, 11 November. Revenue from operations climbed 26.3% to ₹19,635.94 crore (about US$2.1 billion), up from ₹15,544.91 crore a year earlier.

Tata Power Q2 results: the key numbers

Profit attributable to shareholders was ₹919.44 crore in the same quarter last year. On a sequential basis, it rose 16.2% from ₹1,175.93 crore in the June quarter, while revenue grew 3.1%.

Reported PAT, which includes the share held by non-controlling interests, rose about 33% to ₹1,652.04 crore from ₹1,245.39 crore. Profit before tax rose to ₹2,179.85 crore from ₹1,679.90 crore.

Operating profitability was weaker. EBITDA rose 11% to ₹3,668 crore, according to Upstox, but the EBITDA margin narrowed to 18.68% from 21.24% a year earlier.

The reason is visible in the cost lines. Total expenses rose to ₹18,640.57 crore from ₹14,723.66 crore. Fuel costs more than tripled to ₹4,632.94 crore from ₹1,347.06 crore, and power purchase costs increased to ₹6,244.99 crore from ₹5,663.93 crore.

The quarter also carried a net exceptional gain of ₹119.18 crore. This included a ₹317.36 crore gain from derecognising Tata Projects as an associate, partly offset by impairment charges of ₹198.18 crore.

Mundra revival and Tata Power renewables drive the quarter

The thermal business did much of the heavy lifting, helped by the recovery at the 4,150 MW Mundra plant in Gujarat. The plant restarted in April 2026 after a nine-month shutdown, following a supplementary power purchase agreement signed with Gujarat Urja Vikas Nigam in March. It runs under directions issued by the Ministry of Power under Section 11 of the Electricity Act, which the ministry extended in late September to 31 December 2026.

In solar manufacturing, the company produced 0.9 GW of cells and 1 GW of modules in the quarter. That takes first-half output to 1.8 GW of cells and 2.0 GW of modules.

Dr Praveer Sinha, CEO and Managing Director, said, “We delivered our highest-ever quarterly profit, with strong contributions from all businesses.” He added that renewables, rooftop solar, storage and customer-facing solutions were enhancing growth momentum.

Capex push and a leadership transition

For the first half of FY27, attributable profit rose 28% to ₹2,542.04 crore from ₹1,979.30 crore. Revenue grew 15.2% to ₹38,687.20 crore.

Tata Power spent about ₹10,000 crore (about US$1.06 billion) on capital projects in the half, with about ₹6,000 crore going into renewables. It added 765 MW of clean capacity, taking its installed base to 8.6 GW. The company has kept its FY27 capex guidance at ₹25,000 crore.

The company has also approved a 1,800 MW pumped storage project at Shirwata in Maharashtra. The project will cost ₹11,871 crore (about US$1.26 billion), take about 51 months to complete and be funded with 75% debt and 25% equity.

Alongside the results, the board named Sanjay Banga, who heads Tata Power Renewable Energy, as additional director and CEO Designate from 11 November. Subject to shareholder approval, he will take over as Managing Director and CEO for five years from 1 May 2027. Leadership changes are reshaping several Indian companies this season; Info Edge also announced a new group CEO this month.

The Singapore arbitration risk

One risk sits outside the operating numbers. A Singapore International Arbitration Centre tribunal awarded Kleros Capital Partners US$490.32 million in damages, plus interest and costs, in a dispute with Tata Power. On 26 August, the Singapore International Commercial Court dismissed Tata Power’s application to set aside the awards.

On 6 November, notices of attachment were served on Tata Power’s shareholdings in two Singapore subsidiaries, Tata Power International and Bhira Investments. The company has appealed to the Singapore Court of Appeal, which has set 23 November as the deadline for written submissions. Tata Power has made no provision in its accounts pending the legal proceedings, and its auditors’ review conclusion was unmodified.

For investors, the Tata Power Q2 results show a business that is growing faster at the top line but converting less of each rupee into operating profit. They also show the Tata group utility leaning hard into renewables, storage and manufacturing, at a time when India’s power demand and clean energy targets are pulling capital into the sector.

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Tata Power shares closed flat at about ₹360 on the NSE on Wednesday, ahead of the announcement, and rose about 1.4% to ₹365 in early trade on Thursday. The next markers are the 23 November deadline in the Singapore appeal and the 31 December expiry of the current Mundra directions. The company’s filing was reported in detail by BW Businessworld.