Tata Power Revenue Rises 26.3% to 196.36 Billion Rupees in Second Quarter
Key Facts
Tata Power's operating revenue rose 26.3% to 196.36 billion rupees in the second quarter of fiscal 2027, while total expenses increased 26.6% to 186.41 billion rupees. The company reported its results on November 11, 2026, as generation improved at the Mundra plant and solar businesses contributed. Reuters said the 4-gigawatt coal-fired Mundra plant in Gujarat was shut during the year-earlier quarter. The agency said the plant's recovery, along with solar manufacturing and rooftop installations, supported the improvement in earnings. Revenue growth reflected an expansion in activity during the quarter, while expense growth slightly outpaced revenue growth.
Earnings before interest, taxes, depreciation and amortization (EBITDA) were 4,245 crore rupees, up 5.3% from 4,032 crore rupees in the year-earlier period. Profit before exceptional items and tax rose 22.7% to 2,060.67 crore rupees. The different growth rates of the two measures show that the improvement in profit before exceptional items was stronger than the increase in operating earnings measured by EBITDA. Reuters attributed the earnings improvement to the resumption of generation at Mundra and higher contributions from solar manufacturing and rooftop installations. The company described quarterly growth as broad-based, with investment in clean energy businesses continuing. Results varied across segments, with some activities posting strong growth while transmission and distribution results declined.
The thermal and hydro power segment posted a 158.3% increase in segment results to 1,066.66 crore rupees. Its revenue rose to 5,883.14 crore rupees, from 2,335.86 crore rupees in the year-earlier period of fiscal 2026. The segment's improvement is consistent with the recovery at the Mundra plant, which was shut in the year-earlier quarter. In renewables, segment results rose 7.9% to 1,230.14 crore rupees. Transmission and distribution reported results of 986.64 crore rupees, down 3.4%, despite a 9.2% rise in revenue to 11,937.26 crore rupees. The figures highlight divergent performance across the group's units, with a rebound in generation, growth in renewables and pressure on transmission and distribution results.
Tata Power spent about 10,000 crore rupees on capital expenditure in the first half of fiscal 2027, its highest half-year spending, with about 6,000 crore rupees going to its renewable energy business. The company added 765 megawatts of clean and green capacity in the first half, taking installed capacity to 8.6 gigawatts. Rooftop solar installations reached a peak of 426 megawatts during the quarter. Consolidated net profit in the first half also rose 21.7% to 3,052.90 crore rupees, while EBITDA for the period was 8,494 crore rupees, up 6.7%. The company said electricity demand in the first half grew with industrial and economic activity, agricultural consumption and household demand, while heat waves and a delayed monsoon boosted cooling consumption. Chief Executive Praveer Sinha added that regulated and contracted businesses provide resilient cash flows, while renewables, rooftop solar, storage and customer-focused solutions strengthen growth momentum.
At Mundra, Tata Power said the plant was operating at full capacity under Section 11 directives through December 31, 2026. It added that discussions with multiple states on supplementary power purchase agreements had reached an advanced stage. This deadline sets a near-term timeframe for the continuation of current directives, while the company works to secure additional agreements with states. As part of its long-term expansion, the company approved an investment of 11,871 crore rupees on November 11 in the Shirwata pumped-storage project in Maharashtra. The project targets capacity of 1,800 megawatts, with a stated execution period of 51 months. The company also expects to add 2.5 gigawatts of renewable capacity during fiscal 2027, including solar power generation and manufacturing activities.
Tata Power shares closed at 360.95 rupees in the November 11, 2026, session, up 0.40%, the day the results were announced. At the company level, the data showed revenue expansion alongside higher expenses, with uneven improvement across segments. The company's plan combines major investments in renewable energy and a pumped-storage project with continued negotiations on power purchase agreements linked to Mundra. The Section 11 directives for the plant remain in effect through December 31, 2026, according to Moneycontrol, citing the company. The addition of 2.5 gigawatts of renewable capacity is the company's target for fiscal 2027.