Tata Power Posts Record Profit of ₹1,652 Crore as Revenue Rises 26%

Synopsis

Tata Power has posted its highest-ever quarterly profit in Q2 FY27, with PAT rising by 33% to ₹1,652 crore and revenue by 26% to ₹19,886 crore. The net profit grew by 22% to ₹3,053 crore for the first half. The board agreed to invest in a 1,800 MW pumped storage facility in Maharashtra and renewable power generation stood at 8.6 GW. The filing reported an increase in fuel prices, which spiked during the quarter.

Tata Power's profit after tax (PAT) has jumped by 33% compared to the same period last year to ₹1,652 crore in the second quarter of FY27, up from ₹1,245 crore a year ago. Revenue rose 26% to ₹19,886 crore. During the first half, net profit increased by 22% to ₹3,053 crore while business revenues increased by 17% to ₹38,784 crore.

But, growth wasn't without cost pressure. Fuel costs rose to ₹4,632.94 crore from ₹1,347.06 crore, while power purchase costs increased to ₹6,244.99 crore from ₹5,663.93 crore. Profit before tax stood at ₹2,179.85 crore against ₹1,679.90 crore in Q2 FY26. The increase in fuel costs more than tripled the previous year's increase and was offset by improvement in profit.

Investment and renewables

The board cleared a investment of 1,800 MW pumped storage project at the cost of ₹11,871 crore in Maharashtra, while renewable power capacity grew to 8.6 GW.

The renewables arm of execution began to increase. In Q2, 419 MW of utility scale projects were commissioned by Tata Power Renewable Energy, as compared to 182 MW in Q2 last year, and 131.2 MWh of battery storage was accomplished. Its rooftop solar business grew by 33% to 88,397 installations.

The second half of FY27 will see the company complete over 2 GW in projects, with 1,075 MW in the solar portfolio, 969 MW in the wind portfolio and 274 MWh in the battery storage portfolio. Tata Power has stated its target operational capacity is around 12 GW by FY28. Tata Power share price closed at a 2% positive level in its second quarter of FY 2026-27 with the number of projects under execution rising over 130% in the renewable segment.

The sequential view

The company's consolidated net profit in Q1 FY27 was ₹1,175.93 crore earned from consolidated revenue of ₹19,051.26 crore, using a different profit definition (attributable to owners). Revenue growth of 26% YoY in Q2 is also on a higher base effect and the fuel pass-through in some segments which will be analysed by analysts. Tata Power surged 2% on the day of the results, and the analysts were happy.