Informist, Friday, Aug. 1, 2025

By Arya S. Biju

MUMBAI – Tata Power Co. Ltd. reported better-than-expected earnings for the June quarter, driven by robust performance in its renewables segment. The company reported a high single-digit on-year increase in its bottom line for the quarter as sales grew at a faster pace than expenses. However, the on-year growth in the bottom line is lower than the double-digit on-year rise reported in the previous quarter.

The electricity generation and electric utility company's consolidated net profit for the quarter rose over 9% on year to INR 10.60 billion, beating the Street's view of INR 10.12 billion. Its consolidated revenue from operations for the quarter grew over 4% on year to INR 180.35 billion, also above the analysts' expectation of INR 178.39 billion. This was the slowest pace of on-year growth in the company's revenue in three quarters. On a quarter-on-quarter basis, the company's bottom line grew 1.6% and revenue grew over 5%.

"We have commenced FY26 on a high note, with strong performance across all our business verticals. Our renewable energy portfolio continues to exceed expectations, as we drive innovation, scale, and efficiency across the clean energy value chain," Praveer Sinha, chief executive officer and managing director of the company, said in a post-earnings press release.

The company's consolidated earnings before interest, tax, depreciation and amortisation for the quarter rose 17% on year to INR 39.30 billion. This was sharply higher than the INR 34.48 billion EBITDA estimated by the Street.

The company's total expenses for the reporting quarter grew 3% on year and 1% on quarter to INR 163.36 billion. The company's expenses related to the purchase of power and fuel fell nearly 11% on year to INR 88.16 billion, while its raw material cost jumped 85% on year to INR 19.49 billion. Its other expenses for the quarter rose over 7% on year to INR 16.16 billion. The tax expense for the quarter rose over 18% on year to INR 3.57 billion.

Revenue from the company's renewables segment grew 52% on year to INR 36.26 billion. On the other hand, revenue from the thermal and Hydro segment fell 7% on year to INR 48.44 billion and that from the transmission and distribution fell nearly 4% on year to INR 100.78 billion.

Tata Power had commissioned 94 megawatts of renewable energy capacity during the reporting quarter, taking its total operational renewable capacity to 5.6 gigawatts. It added around 16.5 GW of renewable energy capacity during the quarter. Its current total installed capacity in India is 485 GW, the company said in a post-earnings presentation. Renewable energy accounted for 88% of capacity additions in India during the June quarter, Tata Power said.

Revenue from the solar rooftop segment more than doubled on year to INR 8.23 billion. The company had over 45,500 rooftop solar installations during the June quarter. It had commissioned 270 megawatt-peak solar projects during the latest quarter, double the 111 megawatt installed in the year-ago quarter. The company sold 107 MW of modules and 54 MW of cells to third parties in the June quarter.

The company's net debt for the reporting quarter increased to INR 475.78 billion from INR 446.72 billion in the previous quarter and INR 424.67 billion in the year-ago quarter. The sequential increase in net debt was due to higher capital expenditure and working capital requirements, Tata Power said in the presentation.

Friday, shares of the company closed 2.1% lower at INR 389.30 on the National Stock Exchange. The company announced its June quarter earnings post-market hours. End

Edited by Saji George Titus

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