Tata Power reported a 32.7% year-on-year increase in consolidated net profit to ₹1,652.04 crore for the second quarter of financial year 2026-27, supported by improved performance across its power generation and renewable energy businesses. The company had reported a consolidated net profit of ₹1,245.39 crore in the corresponding quarter of the previous financial year.
Revenue from operations increased 26.3% to ₹19,635.94 crore in the July–September quarter, compared with ₹15,544.91 crore a year earlier. EBITDA rose 5.3% to ₹4,245 crore from ₹4,032 crore. The results reflect a recovery in operations at the company’s Mundra power plant, growth in solar manufacturing and rooftop installations, and continued investment in renewable energy and electricity infrastructure.
Tata Power Q2 FY27 Results: Key Financial Highlights
The September-quarter results show strong growth in reported profit and revenue, although EBITDA increased at a slower pace.
| Financial metric | Q2 FY27 | Q2 FY26 | YoY change |
|---|---|---|---|
| Consolidated net profit | ₹1,652.04 crore | ₹1,245.39 crore | +32.7% |
| Revenue from operations | ₹19,635.94 crore | ₹15,544.91 crore | +26.3% |
| EBITDA | ₹4,245 crore | ₹4,032 crore | +5.3% |
| Profit before exceptional items and tax | ₹2,060.67 crore | — | +22.7% |
| Profit attributable to owners | ₹1,366.11 crore | ₹919.44 crore | +48.6% |
The distinction between consolidated net profit and profit attributable to owners is important. The ₹1,652.04 crore figure includes the share attributable to non-controlling interests, while ₹1,366.11 crore represents the profit attributable to the company’s equity shareholders.
Tata Power also reported net exceptional gains of ₹119.18 crore during the quarter. These included a gain from the derecognition of an associate, partly offset by impairment provisions.
Mundra Power Plant Recovery Supports Earnings Growth
The recovery of Tata Power’s 4-gigawatt Mundra coal-fired power plant in Gujarat was an important contributor to the quarterly performance.
The plant had been temporarily shut in July 2025 for maintenance and overhaul work to address technical issues. Its return to operations helped improve the company’s conventional generation business compared with the year-ago period.
Mundra operated at approximately 89% availability during Q2 FY27 and was running at full capacity under an extended Section 11 direction issued by the Ministry of Power.
Section 11 of the Electricity Act allows the government to direct generating companies to operate and maintain generating stations in specified circumstances, including situations involving electricity supply requirements.
The current directions for Mundra have been extended until December 31, 2026.
Tata Power is also in discussions with multiple state governments to secure supplementary power purchase agreements (SPPAs). Such agreements could provide greater visibility over the plant’s future power sales and commercial operations.
The company said discussions were at an advanced stage, with agreements involving Gujarat already filed with the regulatory commission and further agreements with Rajasthan and Haryana expected to progress.
Thermal and Hydro Business Records Strong Growth
The thermal and hydro segment delivered one of the strongest improvements among Tata Power’s business divisions.
Segment revenue increased to ₹5,883.14 crore in Q2 FY27 from ₹2,335.86 crore in the corresponding quarter last year. Segment results rose 158.3% to ₹1,066.66 crore from ₹413 crore.
The improvement was largely supported by the recovery of the Mundra plant, which had not contributed comparable generation during the year-ago quarter.
Other conventional generation assets, including Trombay, Jojobera and Maithon, also reported strong operating performance.
The recovery in conventional generation demonstrates how the company’s diversified power portfolio can benefit when previously underutilised assets return to operation.
Renewable Energy Business Continues to Expand
Renewable energy remained another important growth driver for Tata Power.
The renewable energy segment reported a 7.9% increase in segment results to ₹1,230.14 crore, compared with ₹1,140.14 crore in Q2 FY26. Segment revenue increased 3.7% to ₹3,745.48 crore.
The company added 765 MW of clean and green generation capacity during the first half of FY27, taking its total installed clean and green capacity to 8.6 GW.
Its renewable energy growth strategy covers utility-scale solar and wind projects, rooftop installations, solar manufacturing and energy storage.
Rooftop solar installations increase
Tata Power’s rooftop solar business installed 426 MWp during the September quarter. Cumulative rooftop solar installations crossed 5.12 GWp.
The business has benefited from increasing demand from households and commercial customers seeking to install solar systems and reduce dependence on conventional electricity.
Government initiatives supporting rooftop solar adoption have also created opportunities for companies operating in the residential solar installation market.
Solar manufacturing gains scale
Tata Power continued expanding its domestic solar manufacturing operations.
During Q2 FY27, the company produced:
- 0.9 GW of solar cells.
- 1 GW of solar modules.
- A solar module yield of approximately 97%.
Higher manufacturing volumes and improved product mix supported profitability in the renewable energy business.
Domestic solar manufacturing is strategically important as India seeks to expand its renewable energy capacity while reducing dependence on imported solar equipment.
Transmission and Distribution Business Reports Mixed Performance
Tata Power’s transmission and distribution segment remained its largest business division by revenue.
Segment revenue increased 9.2% year-on-year to ₹11,937.26 crore. However, segment results declined 3.4% to ₹986.64 crore from ₹1,020.99 crore in the corresponding quarter last year.
The performance highlights the difference between revenue growth and profitability. Higher electricity distribution and transmission activity does not necessarily translate into stronger earnings when operating costs and other expenses also increase.
The company continued investing in its electricity network. Its transmission portfolio reached 7,894 circuit kilometres under operation.
It also commissioned 162 circuit kilometres of the Khurja-Jalpura 400 kV transmission corridor, along with the associated gas-insulated substation.
In its distribution business, Tata Power reported that smart meter installations across its distribution companies had exceeded 60 lakh. Its Odisha distribution utilities also continued working to reduce aggregate technical and commercial (AT&C) losses.
Tata Power Invests Nearly ₹10,000 Crore in First Half of FY27
Tata Power invested approximately ₹10,000 crore in capital expenditure during the first half of FY27, marking its highest-ever half-yearly capital deployment.
Around ₹6,000 crore of the investment went into renewable energy projects.
The remaining investment supported areas such as transmission infrastructure, power generation, pumped storage and distribution networks.
The company is expanding its infrastructure to address rising electricity demand from industrial activity, households, electric vehicles and data centres.
₹11,871 Crore Investment in Shirwata Pumped Storage Project
One of the major investment decisions announced alongside the results was the approval of ₹11,871 crore for Tata Power’s 1,800 MW Shirwata pumped storage project in Maharashtra.
The project is expected to be financed through a combination of 75% debt and 25% equity.
Pumped storage facilities use electricity to pump water to an elevated reservoir when power is available and release it through turbines when electricity demand rises.
This technology can help balance intermittent renewable energy generation by providing electricity when solar and wind output is insufficient.
Tata Power is also progressing with construction of its 1,000 MW Bhivpuri pumped storage project in Maharashtra.
Tata Power’s Singapore Legal Dispute Remains an Important Risk
Alongside its operating performance, Tata Power continues to face a legal dispute involving Kleros Capital Partners Ltd.
The dispute relates to an arbitration award directing Tata Power to pay approximately $490.32 million in damages, along with interest and costs.
The Singapore International Commercial Court had dismissed the company’s applications to set aside the arbitration awards in August 2026. Tata Power has appealed against the decision, with a hearing before the Singapore Court of Appeal scheduled for January 19, 2027.
The company disclosed that notices had been served in November concerning the attachment of shares in two wholly owned Singapore subsidiaries, up to a value of SGD 830.77 million.
Tata Power has said it is challenging the enforcement proceedings and seeking to defer the sale of the shares while its appeal is pending.
The company has not recognised a provision for the dispute in its September-quarter results, citing legal advice and its assessment of the appeal.
The outcome could remain an important factor for investors assessing the company’s financial and legal risks.
The Bigger Picture
Tata Power’s Q2 FY27 performance reflects the advantages of operating across multiple parts of the electricity value chain. The recovery of the Mundra plant supported conventional generation, while renewable energy, solar manufacturing and rooftop installations continued contributing to business growth.
The company’s investment programme also highlights the scale of infrastructure required to support India’s changing energy needs. Renewable capacity, transmission networks, pumped storage and battery energy storage systems will play increasingly important roles as electricity consumption rises and the power system integrates more intermittent renewable generation.
However, the difference between profit growth and EBITDA growth, the mixed performance of transmission and distribution, and the ongoing Singapore legal dispute remain important considerations. Investors will need to monitor whether the company can convert its large capital investments into sustained operating earnings and cash flows.
Looking Ahead
Tata Power enters the second half of FY27 with record half-year profit, an expanding renewable energy portfolio and significant investment commitments across generation, transmission and storage. The company’s progress on the Shirwata and Bhivpuri pumped storage projects, solar manufacturing expansion and rooftop installations will be important indicators of its ability to capture India’s growing demand for electricity and clean energy infrastructure.
The next few quarters will also be important for the Mundra plant’s commercial arrangements as the current Section 11 directions approach their December 2026 deadline. Progress on supplementary power purchase agreements, execution of renewable projects and the Singapore legal appeal will shape the company’s operational and financial outlook. Sustained earnings growth will depend on balancing expansion with profitability, financing costs and disciplined capital allocation.
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