Tata Power Company Limited Earnings Summary — Q1 FY2027
Tata Power Reports Robust Net Profit Growth of 11% in Q1 FY27 Driven by Thermal and Renewables Growth
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 3 consecutive quarters.
- Revenue of ₹19,051 Cr is 5.6% higher year-on-year.
- Revenue has compounded at 8.5% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹1,176 Cr is 11.0% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 12.9% annualised across the period.
- Operating margin stands at 20.3% in Q1 FY2027.
- Operating margin expanded by 49 bps year-on-year.
- Over the last two years operating margin has expanded by 256 bps.
- PBT margin is 9.6%.
- Expense growth of 5.0% remained below revenue growth of 5.6%.
- Operating profit of ₹3,860 Cr is 8.3% higher year-on-year.
- Operating leverage continues to improve.
- 3 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 70/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 19,051 | 14,900 | 13,948 | 15,545 | 18,035 | 17,096 | 15,391 | 15,698 | 17,294 | 15,847 |
| Expenses | Stable | 15,191 | 12,301 | 10,894 | 12,243 | 14,470 | 13,850 | 12,312 | 12,427 | 14,232 | 13,540 |
| Operating Profit | Improving | 3,860 | 2,599 | 3,055 | 3,302 | 3,565 | 3,246 | 3,079 | 3,271 | 3,062 | 2,307 |
| Operating Margin | Improving | 20.3% | 17.4% | 21.9% | 21.2% | 19.8% | 19.0% | 20.0% | 20.8% | 17.7% | 14.6% |
| Other Income | Volatile | 630 | 1,773 | 1,056 | 859 | 494 | 684 | 589 | 632 | 578 | 1,407 |
| Interest | Stable | 1,407 | 1,295 | 1,364 | 1,319 | 1,279 | 1,213 | 1,170 | 1,143 | 1,176 | 1,136 |
| Depreciation | Stable | 1,260 | 1,280 | 1,208 | 1,162 | 1,161 | 1,116 | 1,041 | 987 | 973 | 1,041 |
| Profit Before Tax | Stable | 1,823 | 1,797 | 1,540 | 1,680 | 1,619 | 1,600 | 1,457 | 1,773 | 1,490 | 1,537 |
| Tax | Volatile | 422 | 381 | 345 | 435 | 357 | 294 | 269 | 680 | 302 | 491 |
| Net Profit | Improving | 1,176 | 996 | 772 | 919 | 1,060 | 1,043 | 1,031 | 927 | 971 | 895 |
| Net Margin | Stable | 6.2% | 6.7% | 5.5% | 5.9% | 5.9% | 6.1% | 6.7% | 5.9% | 5.6% | 5.7% |
Key Takeaways
- Consolidated revenue grew 5.6% YoY to ₹19,051 crore, reflecting strong operational performance across key segments.
- The Renewables segment delivered a result of ₹1,210 crore for the quarter, continuing its strong contribution to group profitability.
- Thermal & Hydro segment results improved significantly to ₹1,098 crore, up from ₹852 crore in the same quarter last year.
- Operations at the Mundra Power Plant were successfully resumed for Q1 under Section 11 directions with revised SPPA terms.
- Net Profit Margin remained stable at 7%, identical to the same period last year despite higher finance costs.
- The company continues to face a significant legal contingency involving a USD 490 million arbitration award, currently under appeal in Singapore.
- Transmission and Distribution (T&D) remains the largest revenue contributor at ₹11,440 crore, showing steady growth of 13.5% YoY.
Management Guidance
Management is focused on maintaining operational efficiency at the Mundra plant and expects completion of SPPA approvals with other procurers by September 2026. The company remains committed to its transition toward green energy infrastructure.
Sentiment Shift
Stable
Consistent profit growth and successful segment performances maintain a positive outlook, though high debt and international legal disputes remain moderated risks.
Outlook
The outlook remains healthy with a strong focus on renewable energy scaling and EV infrastructure. The resolution of the Mundra tariff framework provides better earnings visibility for the thermal segment.
From the Annual Report (Key Quotes)
“The Holding Company executed the supplementary power purchase agreement ('SPPA') with GUVNL... which superseded the earlier PPA.”
“The Holding Company has filed an appeal... for setting aside the [SIAC] awards and does not foresee any affirmative payment obligation.”
Official Quarterly Documents
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This summary is AI-generated from Tata Power Company Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.