According to reports from Business Standard, Tata Power delivered strong revenue growth in Q2 FY27 despite facing margin pressures. The company reported Q2 FY27 revenue of ₹19,640 crore, representing a 26% year-on-year increase and 3% quarter-on-quarter growth. However, operating profit margins declined 240 basis points quarter-on-quarter to 18.7%, with operating profit at ₹3,670 crore and margins down 11% year-on-year. Adjusted net profit reached ₹1,280 crore, showing a 40% year-on-year increase and 9% quarter-on-quarter growth. As per latest reports, the company's consolidated net profit attributable to owners increased 48.6% year-on-year to ₹1,366 crore compared to ₹919.44 crore in the corresponding quarter of the previous financial year.
As reported by Business Standard, Tata Power invested ₹10,000 crore in capex during H1 FY27, with approximately 60% allocated to renewable energy. The company's operational capacity increased to 17.4 gigawatts (GW) in Q2 FY27 from 16.8 GW in Q1 FY27, mainly through solar and waste heat recovery systems. RE capacity installation in H1 FY27 was 765 MW, with the company targeting 2-2.5 GW of renewable capacity addition in FY27. The Renewable GenCo reported H1 FY27 Ebitda of ₹2,231 crore on its 7.1 GW capacity, with FY27 Ebitda expected to more than double year-on-year. However, CLSA highlighted continued weakness in certain parts of the renewable energy business, pointing to a 257-basis-point margin impact in the solar module and cell business and continued pressure on engineering, procurement and construction (EPC) margins, which declined 410 basis points. The newly commissioned solar cell and module manufacturing facilities are expected to contribute meaningfully to earnings during the quarter, with analysts estimating module production of around 1 GW and cell production of approximately 0.9 GW in Q2. Solar manufacturing EBITDA margin is estimated at 22%, lower than 26% in the year-ago period, though the segment is still expected to remain a significant contributor to profitability.
According to Business Standard, power demand grew 10-11% year-on-year in Q2 FY27 due to agricultural and cooling demand, with October demand growth at 12% year-on-year. The Odisha distribution companies continued to improve operational efficiency, with aggregate technical and commercial losses declining to 21%. However, renewable curtailment increased to 11% in Q2 FY27 from 8.8% in Q1 FY27 due to lack of transmission infrastructure. The company's new ingot and wafer plant has secured regulatory approvals, with commercial operations expected to start by the end of FY28. Motilal Oswal noted that power demand growth reached 12% in October 2026, with management expecting the momentum to continue through FY27. The wind independent power producer business also performed well during the quarter, while profit per tonne at Indonesian coal mines increased sevenfold year-on-year, supported by higher seaborne coal prices.
As reported by Business Standard, there is ongoing litigation in Singapore where Kleros Capital is attempting to attach shares in subsidiaries, with management expecting the enforcement process to take 3-6 months. The company maintains a consolidated cash position of ₹11,165 crore as of September 2026, including ₹1,400 crore in renewable energy companies. Distribution regulatory assets rose 28% year-on-year to ₹8,310 crore. Conventional generation Ebitda was up 37% year-on-year to ₹351 crore, with the coal joint venture expected to register a steady ₹400 crore profit per quarter. Motilal Oswal identified renewable capacity additions, higher curtailment and the Singapore legal proceedings as key monitorables.
According to Business Standard, analysts remain positive on Tata Power's stock given the significant correction since May 2026. The company reiterated its FY27 capex guidance of ₹25,000 crore and submitted a supplementary power purchase agreement with Gujarat for the Mundra ultra mega power plant to the Central Electricity Regulatory Commission for approval. Management believes weak hydropower generation due to erratic monsoon could boost thermal demand, while the company is exploring round-the-clock power supply opportunities through bundling renewables with pumped storage projects for data centres and industry. Following the Q2 results, several domestic and international brokerages retained their existing ratings on the stock, with target prices ranging from ₹415 to ₹525 per share. Citi maintained its buy rating with a target price of ₹525 per share, indicating a potential upside of 44.8% from the current market price of ₹362.50. JP Morgan maintained its neutral rating with a target price of ₹423, translating into a potential upside of approximately 16.7%. However, CLSA highlighted continued weakness in certain parts of the renewable energy business, maintaining a hold rating with a target price of ₹415.
