Earnings Review
Mundra power plant drags down Tata Power Q2 consol PAT
This story was originally published at 20:04 IST on 11 November 2025
Register to read our real-time news.Informist, Tuesday, Nov. 11, 2025
Please click here to read all liners published on this story
--Tata Power Jul-Sept consol net profit INR 9.19 bln
--Analysts saw Tata Power Jul-Sept consol net profit at INR 9.95 bln
--Tata Power Jul-Sept consol revenue INR 155.45 bln
--Analysts saw Tata Power Jul-Sept consol revenue at INR 168.82 bln
--Tata Power Jul-Sept consol net profit INR 9.19 bln vs INR 9.27 bln yr ago
--Tata Power Jul-Sept consol sales INR 155.45 bln vs INR 156.98 bln year ago
--Tata Power Apr-Sept consol net profit INR 19.79 bln vs INR 18.97 bln yr ago
--Tata Power Apr-Sept consol revenue INR 335.80bln vs INR 329.91 bln year ago
--Tata Power Q2 consol thermal, hydro revenue INR 23.36 bln vs INR 43.09 bln
--Tata Power Q2 consol renewables revenue INR 36.13 bln vs INR 19.13 bln
--Tata Power Q2 consol transmission, distribution sales INR 109.36 bln
--Tata Power proposes to buy 40% stake in SPV for INR 15.72 bln
--Tata Power proposes to incorporate SPV for hydro power project in Bhutan
--Tata Power Jul-Sept consol EBITDA INR 40.32 bln, up 5.9% on year
--Tata Power: Expect to commission majority of transmission projects in FY26
--Tata Power: Current operational capacity 15.95 GW, of which 56% is thermal
--Tata Power: Third-party solar rooftop order book INR 11.16 bln as of Sept 30
--Tata Power: Got 907-MW solar rooftop orders in Apr-Sept
By Sunil Raghu and Shakshi Jain
AHMEDABAD – Tata Power Co. Ltd. reported lower-than-expected earnings for the September quarter, as it had suspended the operations at its 4,000 megawatt Mundra power plant since Jul. 3. The company was forced to shut down operations as it was unable to recover the full fuel cost of the power it generates at the Mundra plant from customers.
Tata Power's net profit fell on year for the first time in five quarters in the September quarter. Its revenue also declined from a year ago after rising for three quarters in a row. The electricity generation and electric utility company's consolidated net profit for the quarter fell nearly 1% on year to INR 9.19 billion, below the Street's view of INR 9.95 billion. Its consolidated revenue from operations for the quarter also fell nearly 1% on year to INR 155.45 billion, well below analysts' expectations of INR 168.82 billion. Sequentially, the company's bottom line fell by over 13% and revenue declined by nearly 14%.
Tata Power has five supercritical units of 800 MW each at Mundra. The plant accounts for nearly one-fourth of Tata Power's total electricity generation capacity of 16 gigawatts. The plant accounted for INR 112.9 billion of the company's consolidated turnover of INR 645.02 billion in the previous financial year.
The fall in thermal power generation was such that the robust performance in its renewables segment and a rise in its transmission and distribution segments failed to rescue the company's earnings.
"Tata Power is very well positioned to expand further with 10 GW of clean capacity under construction, including a healthy pipeline of 5 GW hybrid and FDRE (firm and dispatchable renewable energy) projects," Praveer Sinha, of the company, said in a press release. He added that, with the proposed amendments to the Electricity Act, Tata Power is well-positioned to expand its distribution footprint to 40 million consumers by 2030.
The company's consolidated earnings before interest, tax, depreciation and amortisation for the quarter rose 5.9% on year to INR 40.32 billion. This was sharply higher than the INR 36.4 billion consolidated EBITDA estimated by the Street.
The company's total expenses for the reporting quarter grew almost 5% on year but fell nearly 10% on quarter to INR 147.24 billion. The company's expenses related to power purchases rose 2.4% on year to INR 56.64 billion, while its fuel costs fell to INR 13.47 billion from INR 28.72 billion a year ago. The raw material costs zoomed more than fourfold on year to INR 21.69 billion. Its other expenses for the quarter rose by over 10% on year to INR 17.85 billion. The tax expense for the quarter fell by over 36% on year to INR 4.35 billion from INR 6.80 billion a year ago.
Revenue from the company's renewables segment grew nearly 89% on year to INR 36.13 billion. On the other hand, revenue from the thermal and hydro segment fell nearly 46% on year to INR 23.36 billion and that from the transmission and distribution segment rose over 7% on year to INR 109.36 billion.
The company aims to commission a majority of its transmission projects in FY26, it said in an investor presentation. Its current operational capacity is 15.95 GW, of which 56% is thermal and 26% is solar.
The company secured 907 MW of solar rooftop orders in the first half of FY26. Its third-party solar rooftop order book stood at INR 11.16 billion as of Sept. 30.
Tata Power has proposed to acquire a 40% stake in a special purpose vehicle for INR 15.72 billion in one or more tranches, the company said in a separate exchange filing. The SPV will develop the 1125-MW Dorjilung Hydro Power Project in Bhutan at a project cost of around INR 131 billion, the company said.
Tuesday, the company's shares ended marginally lower at INR 395.60 on the National Stock Exchange.
End
Edited by Saji George Titus
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
