Tata Power Q2 Results: Consolidated net profit slips marginally to ₹919 crore YoY; solar business order book at ₹1,116 crore

The Tata firm’s revenue from operations slipped 0.97% to ₹15,545 crore in the July-September quarter as against ₹15,698 crore seen in the year-ago period.

Tata Power's operating profit, also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA), slipped 12% to ₹3,302 crore as compared to ₹3,746 crore in the corresponding quarter of the previous fiscal year.

Its EBITDA margin, however, contracted to 21.2% in the reporting quarter from 23.8% in Q2 FY25.

Meanwhile, Tata Power said it received an unfavourable arbitration award in July 2025, followed by a final order in August 2025, directing payment of $490.32 million along with related costs and interest. The company has challenged the award by filing an application with the appropriate forum in Singapore to set it aside. As the matter is still under litigation, no adjustments have been made in the consolidated financial results for the quarter and half-year ended September 30, 2025, it stated.

Tata Power’s revenue momentum remained strong in H1 FY26, rising 4% to ₹33,233 crore, driven by robust performance across its core businesses. The company’s EBITDA grew 6% year-on-year to ₹4,032 crore in Q2 FY26 and 11% to ₹7,961 crore in H1 FY26, reflecting improved operating efficiency and a well-diversified business portfolio.

Commenting on the earnings, Dr Praveer Sinha, CEO & Managing Director, said, “Tata Power has reported a robust performance in Q2FY26 and H1FY26, reflecting the strength of strategic initiatives and decisions taken by the company towards its integrated and diversified business model. Growth continues across conventional generation, clean energy, and consumer-focused distribution.”

Segment wise updates

The company’s renewables business delivered a good performance in Q2 FY26, with segment PAT surging 70% year-on-year to ₹511 crore, EBITDA rising 57% to ₹1,575 crore, and revenue jumping 89% to ₹3,613 crore. The firm said this strong growth reflects the success of its strategic investments in solar manufacturing and the rooftop solar segment.

During the quarter, solar cell and module manufacturing achieved an output of 928 MW of cells and 970 MW of modules, including a record dispatch of 809 MW of DCR modules — the highest ever in a single quarter.

The rooftop solar business also scaled new highs, with an order book of ₹1,116 crore and a strong pan-India network of 644 channel partners and over 2,000 retailers, the firm said.

“The rooftop solar segment continues to lead the industry with record installations, while our Discoms drive service excellence across a growing customer base of over 13 million. With proposed amendments to the Electricity Act, Tata Power is well positioned to expand its distribution footprint to 40 million consumers by 2030,” said Sinha.

Tata Power’s transmission business posted a 41% year-on-year increase in PAT to ₹120 crore in Q2 FY26, while the distribution segment’s PAT grew 34% to ₹557 crore. The company is actively exploring new opportunities in the power distribution space across Maharashtra, Goa, and Uttar Pradesh.

As part of its regional energy initiatives, Tata Power commenced construction of the 600 MW Khorlochhu Hydro Project in Bhutan, in which it holds a 40% stake. The project, part of a 5 GW clean energy partnership, has secured a loan agreement worth ₹4,829 crore with PFC.

Additionally, work has begun on the 1,000 MW Bhivpuri Pumped Storage Project in Maharashtra, aimed at providing a firm and dispatchable renewable energy supply.

“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 projects. The company’s backward-integrated solar manufacturing facilities are operating at full capacity, with ALMM-listed modules and cells supporting the “Make in India” clean energy push,” said Sinha.

Tata Power to invest ₹1,572 crore to set up hydro power project in Bhutan

Along with its earnings, Tata Power also said it will invest ₹1,572 crore for acquiring 40% equity stake in a special purpose vehicle (SPV) that will set up 1,125 MW Dorjilung hydro power project in Bhutan at an investment of ₹13,100 crore.

The acquisition will be done in one or more tranches for which a shareholders agreement would be executed between the company and Druk Green Power Corporation Ltd (DGPC) in Bhutan, a regulatory filing said.

According to the filing, the SPV is yet to be incorporated. The acquisition will not fall under the related party transaction. However, it stated that post-acquisition, the SPV will become an associate company of Tata Power and consequently a related party.

The SPV will develop the Dorjilung hydro power project at a cost of ₹13,100 crore. This project will support the company to accelerate its clean and green energy transition.

On Tuesday, Tata Power shares closed at ₹395.50 apiece on NSE, falling 0.09%. The earnings, however, came after market trading hours.