Tata Power Q4 Net Profit Rises 16.5% to ₹1,043 Crore

Tata Power has reported a robust performance in the fourth quarter of FY25, posting a net profit of ₹1,043 crore, marking a 16.5% year-on-year increase over the ₹895 crore reported in Q4FY24. This figure outperformed analyst expectations, which had forecasted a net profit of ₹1,022 crore.

Revenue Grows Nearly 8%

The company's total revenue rose by 7.9% to ₹17,096 crore in Q4FY25, up from ₹15,847 crore in the same quarter last year. Revenue growth was in line with market expectations and demonstrates consistent performance across business verticals.

Significant Ebitda Growth

Tata Power's earnings before interest, taxes, depreciation, and amortization (Ebitda) reached ₹3,246 crore for the quarter — a 39.2% jump from the previous year. Analysts had predicted Ebitda of ₹3,116 crore. The surge was driven by operational efficiencies and expansion in its renewables and distribution business.

Operational Highlights Behind the Growth

The company attributed its improved quarterly performance to:

• Increased power sales from all generation facilities.

• Successful scale-up of module and cell lines at the Tirunelveli facility.

• Strong growth in the rooftop solar segment across India.

Odisha Discoms Fuel Distribution Segment Growth

Tata Power’s distribution segment saw a 73% YoY increase in profit after tax (PAT). A significant portion of this growth was fueled by the performance of the Odisha Discoms, whose PAT tripled to ₹275 crore. This was supported by higher billing and collection efficiencies and reduced Expected Credit Loss (ECL) provisions.

Record Annual Revenue in FY25

Tata Power achieved its highest-ever annual revenue of ₹64,502 crore in FY25, showcasing its strength in both traditional and renewable energy sectors.

Capex Plans for FY26

Managing Director and CEO Praveer Sinha announced that the company plans to invest ₹25,000 crore in FY26:

• 50% allocated for expanding its renewables portfolio.

• 20% for generation projects, including pumped hydro and hydroelectric power.

• 30% earmarked for transmission and distribution projects.

Although the company had targeted ₹20,000 crore in capex for FY25, it was able to deploy over ₹16,000 crore due to delays in some transmission and distribution projects, which are now expected to conclude this year.

Nuclear Energy Outlook

Tata Power is exploring entry into the nuclear power sector. However, the company is currently awaiting amendments to the Nuclear Power Act, particularly around civil liability provisions and private sector participation. Sinha stated that preparatory steps such as site evaluations, water arrangements, and technology reviews are ongoing, with further actions pending legal clarity.

Renewable Energy Milestones and Future Targets

Tata Power achieved a major milestone in FY25 by adding over 1 GW of renewable capacity in a single year for the first time. For FY26, the company is targeting 2 GW in renewable capacity additions.

Key achievements in FY25 include:

• Commissioning of 2.5 GW renewable capacity.

• 1 GW from in-house utility-scale projects.

• 600 MW from rooftop solar installations (~782 MWp).

• 900 MW from third-party customer projects.

Additionally, Tata Power has 3 GW of capacity under development in Karnataka and Maharashtra, secured 6,800+ MW of grid connectivity, and acquired over 30,000 acres of land to support its 5.4 GW pipeline of upcoming projects.

Meeting India’s Power Demand

To help meet the all-India peak demand forecast of 277 GW for FY26, Tata Power will continue to operate its renewable and thermal plants at full efficiency, ensuring reliable and affordable power delivery.