Power and energy major Tata Power on Wednesday reported a 25% dip in its consolidated net profit (attributable to equity holders of the company) at ₹772 crore for the quarter ended December 31, 2025. The company had reported a net profit of ₹1,030.70 crore during the corresponding quarter of the previous fiscal (Q3 FY25).

The company's revenue from operations also saw a 9.4% decline, falling from ₹15,391 crore in Q3 FY25 to ₹13,948 crore in Q3 FY26. During the quarter under review, Tata Power reported an EBITDA of ₹3,055.30 crore, down 8.9% from the ₹3,352.90 crore reported during Q3 FY25.

Impact of exceptional items and demand

The decline in the headline profit was partially attributed to one-time exceptional expenses. Tata Power recorded a charge of ₹78 crore during the quarter due to the implementation of the new labour codes. Additionally, the company noted that power demand remained relatively flat during the quarter, against a 7% year-on-year jump seen in the same period last year.

However, management pointed out that on an adjusted basis—focusing on core business performance—the "reported PAT" (which includes minority interests and non-recurring items) actually saw a marginal rise of 1% to ₹1,194 crore.

Operational resilience and renewable push

Despite the dip in consolidated net profit attributable to owners, Tata Power’s operational segments showed growth. The renewable energy business was a standout performer, with its PAT growing 156% to ₹547 crore in Q3 FY26. The company also achieved a major milestone by crossing 10 GW of cumulative renewable EPC execution.

• Solar manufacturing: PAT grew to ₹251 crore, up 124% YoY.

CEO & Managing Director Praveer Sinha stated that the 9-month performance positions the company strongly for 2026. "We remain focused on responsibly scaling clean energy capacity and strengthening system resilience," Sinha said.

The shares of Tata Power ended 1.63% higher at ₹371.05 apiece on the National Stock Exchange on Wednesday. The company's stock has risen 2.49% in the past year, underperforming the benchmark Nifty 50 index that has risen close to 10% during the same period.