Tata Power Q2 Profit Rises on Mundra Plant Turnaround, Solar Business

Tata Power reported a 32.7% year-on-year increase in consolidated net profit to Rs 1,652.04 crore for the quarter ended September 30, 2026, as operational improvements at its Mundra plant and growth in renewable energy boosted performance.

Consolidated Revenue and EBITDA Grew in Q2 FY27

The company’s consolidated revenue from operations climbed 26.3% to Rs 19,635.94 crore in the second quarter of FY27, compared with Rs 15,544.91 crore in the same period last year. Segment revenue for the company rose 9.2% to Rs 11,937.26 crore, while total segment results grew 28.2% to Rs 3,262.39 crore from Rs 2,545.65 crore a year earlier.

EBITDA for the first half of FY27 reached Rs 8,494 crore, a 6.7% increase year-on-year. Quarterly EBITDA was recorded at Rs 4,245 crore, compared to Rs 4,032 crore in the corresponding period of the previous year.

Profit attributable to owners of the company surged by 48.6% to Rs 1,366.11 crore for the quarter ending September 30, 2026, compared to Rs 919.44 crore in the same period the previous year.

For the first half of FY27, consolidated profit attributable to owners reached Rs 2,542.04 crore, up from Rs 1,979.30 crore in H1 FY26. Total revenue for the first half of the fiscal year stood at Rs 38,687.20 crore, rising from Rs 33,579.98 crore in the year-ago period.

Operational Expenses and Segment Performance

Consolidated expenses rose significantly to Rs 18,640.57 crore in Q2 FY27 from Rs 14,723.66 crore in the same quarter the previous year. This increase was driven by several factors: the cost of power purchased climbed to Rs 6,244.99 crore from Rs 5,663.93 crore, while finance costs rose to Rs 1,384.93 crore from Rs 1,318.65 crore. Depreciation and amortisation expenses also increased to Rs 1,286.55 crore from Rs 1,162.05 crore.

The Centre has extended the special operating framework for @TataPower's 4,000-MW Mundra plant until September 30, ensuring continued power supply from India's largest imported coal-based station amid rising electricity demand. ✍️ @Avinashgnair pic.twitter.com/z35jUmr9Vm

— Post by @businessline on X

The renewables sector showed strong operational traction, with a 130% year-on-year increase in utility-scale commissioning reaching 419 MW. The renewables segment reported results of Rs 1,230.14 crore, compared with Rs 1,140.14 crore in the prior year. Meanwhile, the transmission and distribution segment saw revenue rise to Rs 11,937.26 crore, though segment results declined to Rs 986.64 crore from Rs 1,020.99 crore.

Mundra Power Plant Operations Bolster Results

The performance was bolstered by the resumption of operations at the Mundra power plant. Tata Power had suspended the plant in July 2025 to address technical issues through a major overhaul. The plant’s operation under Section 11 of the Electricity Act was further extended on September 25, 2026, until December 31, 2026.

Tata Power Q2 Profit Rises on Mundra Plant Turnaround, Solar Business — Photo: BW Businessworld

Praveer Sinha, CEO and managing director of Tata Power, stated, “We delivered our highest-ever quarterly profit, with strong contributions from all businesses, underscoring the strength of Tata Power’s integrated energy platform and consistent execution across our portfolio.”

The company’s growth is attributed to increased economic activity, rising agricultural consumption, and higher household demand, alongside the expansion of the data centre ecosystem and electric vehicle adoption. Extreme heatwaves and a delayed monsoon further accelerated cooling-related power consumption.

Company Appeals Singapore Arbitration Damages Award

The Singapore International Arbitration Centre had directed the company to pay USD 490.32 million in damages, plus interest and costs. Following the Singapore International Commercial Court’s dismissal of the company’s application to set aside the award, an enforcement order was issued.

Tata power results pat jumps yoy to rs crore revenue rises — Photo: The Economic Times

On November 6, 2026, the court-appointed sheriff served notices regarding the attachment of Tata Power’s shareholdings in certain Singapore subsidiaries. The company has filed an appeal before the Singapore Court of Appeal and is required to submit written arguments by November 23, 2026.

The stock has experienced a decline of nearly 6% during 2026. Despite recent fluctuations, the stock has delivered total returns of 48% over the past five years.