Tata Power Q1 profit rises 11% to ₹1,401 crore; renewable, T&D businesses drive growth
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Tata Power reported an 11% year-on-year rise in consolidated net profit for the June quarter, supported by resilient performance in its renewable energy, transmission and distribution businesses, even as operating margins came under pressure.
The Tata Group company posted a consolidated net profit of ₹1,401 crore for the quarter ended June 30, compared with ₹1,262 crore a year earlier, marking a 10.97% increase. Revenue from operations rose 5.6% to ₹19,051 crore from ₹18,035 crore in the corresponding quarter last year.
However, operating performance remained subdued. EBITDA declined 3% year-on-year to ₹4,013.23 crore from ₹4,139.01 crore, while the EBITDA margin narrowed to 21.07% from 22.95% a year earlier.
Renewables, transmission remain growth engines
Despite the moderation in margins, Tata Power said the quarter reflected steady execution across its diversified businesses, with continued investments in clean energy and grid infrastructure.
"We have commenced FY27 on a strong footing, with the first quarter reflecting solid execution across our businesses and reinforcing the strategic priorities that will drive the next phase of growth," Praveer Sinha, CEO and managing director of Tata Power, said.
"As green energy adoption accelerates, we are strategically investing across the value chain—from domestic manufacturing and large-scale renewable development to cross-border clean energy partnerships and energy storage solutions," he added.
The company said it deployed more than ₹5,000 crore in capital expenditure during the quarter, while continuing to expand its renewable generation, rooftop solar and energy storage portfolio.
Operational milestones
During the quarter, Tata Power's 4,150 MW Mundra power plant resumed full operations from April 1 under the Centre's Section 11 directions, with the Ministry of Power extending the directive until September 30, 2026. The company said discussions are underway with other states to operationalise revised power purchase agreements.
The company also secured a 324 MW round-the-clock renewable power project from SECI, expanded its EV charging network to more than 2.4 lakh home chargers and nearly 6,000 public charging points, and strengthened its cross-border clean energy partnerships in Bhutan.
"We are building capabilities that enhance grid flexibility and reliability through a combination of pumped hydro storage, battery energy storage systems and hybrid energy solutions," Sinha said, adding that these investments position the company to meet India's rising demand for reliable round-the-clock clean energy.
Tata Power said its diversified business model and continued investments across generation, transmission, distribution and renewables would support its long-term growth strategy as India's energy transition gathers pace.
Shares of Tata Power ended 1.23% higher at ₹379 apiece on the NSE ahead of the earnings announcement. Despite Monday's gains, the stock remains down more than 4% over the past one year, underperforming the Nifty Next 50 index, which has gained over 8% during the same period.