Earnings Outlook
Tata Power's consol PAT seen rising 11% on year
This story was originally published at 20:56 IST on 3 February 2025
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By Alina Geogy
MUMBAI – Tata Power Co. Ltd. may report strong earnings growth for yet another quarter in Oct-Dec owing to robust growth in its renewable energy segment and strong execution by its solar power arm Tata Power Solar Ltd. Tata Power's consolidated net profit for Oct-Dec is expected to rise 11% on year to INR 10.58 billion in the December quarter, as per the average of the estimates of six brokerage firms. The bottom line is seen rising 14% sequentially.
Earnings from the company's renewable portfolio will benefit from a higher capacity base as well as strong execution at wholly-owned subsidiary Tata Power Solar, according to various brokerage reports. Its consolidated revenue for the latest quarter is seen rising nearly 18% on year and 10% on quarter to INR 172.30 billion, as per the average of six estimates.
The company's consolidated earnings before interest, tax, depreciation, and amortisation, or EBITDA, for the December quarter is seen at INR 31.52 billion, according to the average of five brokerages' estimates. The company contained losses at its plant in Mundra in Gujarat as the plant was operating under cost-plus tariff during the quarter, according to the brokerage reports.
Tata Power will post higher generation at the Mundra Ultra Mega Power Project, a bituminous coal-fired power plant at Mundra, Nuvama Institutional Equities said in an earnings preview report. This power project underwent a shutdown in October, and the company's management had hinted that plant load factor would remain high till the end of March and this is reflected in the official data for October and November, the brokerage said.
The company is scheduled to detail its earnings for Oct-Dec on Tuesday.
On Monday, shares of the company closed at INR 354.90 on the National Stock Exchange, down 3.7%. The stock is down 19% from the closing price on Oct. 31, a day after the company detailed its earnings for the September quarter. Of the seven brokerage reports on the company available with Informist, six have a 'buy' or equivalent rating on the stock, while one has a 'reduce' rating.
Following are the Oct-Dec earnings estimates for Tata Power based on reports from six brokerage firms in descending order of net profit estimate (in INR million):
| Brokerage firm | Net sales | Net profit | EBITDA |
| -----(in INR million)-------- | |||
| Elara Securities (India) Pvt. Ltd. | 162,982.00 | 12,135.00 | 30,967.00 |
| Sharekhan Ltd. | 166,200.00 | 11,500.00 | ----- |
| Kotak Institutional Equities | 167,207.00 | 11,213.00 | 32,402.00 |
| JM Financial Institutional Securities Pvt. Ltd. | 153,621.00 | 10,899.00 | 33,373.00 |
| Nuvama Wealth Management Ltd. | 169,621.00 | 8,977.00 | 25,838.00 |
| Motilal Oswal Financial Services Ltd. | 214,179.00 | 8,762.00 | 35,022.00 |
| Average | 172,301.67 | 10,581.00 | 31,520.40 |
End
Edited by Avishek Dutta
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