India's Tata Power reports lower quarterly profit as thermal segment softens

Tata Power

04/02/2026 12:54

Feb 2 (Reuters) - India's Tata Power TTPW.NS reported a 25.1% drop in quarterly net profit on Wednesday, hurt by a weakness in the thermal power segment due to the shutdown of a key plant.

The company's consolidated profit attributable to owners fell to 7.72 billion rupees ($85.36 million), compared with 10.31 billion a year ago.

Revenue from operations fell 9.4% to 139.48 billion rupees. Revenue from the thermal and hydroelectric segment fell nearly 59%, while that of renewables and transmission businesses grew 78.3% and 8.8%, respectively.

For further earnings highlights, click here.

KEY CONTEXT

Power generation at Tata Power remained subdued in the third quarter, as its Mundra plant in Gujarat stayed non-operational after June 2025, according to analysts at Elara Securities.

The company had reported a decline in profit in the second quarter, impacted by the shutdown after the Ministry of Power did not extend subsidies and reimbursement support for imported coal-based power plants.

India's overall power demand fell 0.4% in the third quarter, affected by unseasonal rains in October and lower temperatures, according to analysts at Nuvama.

The country's coal-fired electricity generation in October also fell at the fastest pace since June 2020, when the COVID-19 pandemic led to a nationwide lockdown, as overall power demand declined. Coal-fired electricity generation fell 5.8% in November.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Price/Sales
Revenue growth
Profit growth
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
Tata Power Company Ltd
TTPW.NS
22.26
11.05
NULL
11.86
15.04
Hold
20
0.87
0.63
Torrent Power Ltd
TOPO.NS
22.67
10.46
NULL
11.16
3.35
Hold
11
0.97
1.43
NTPC Ltd
NTPC.NS
13.60
9.02
NULL
8.56
7.27
Buy
16
0.83
2.53
CESC Ltd
CESC.NS
11.28
7.14
NULL
8.07
7.67
Strong Buy
9
0.67
4.19

* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

OCTOBER TO DECEMBER STOCK PERFORMANCE

-- All data from LSEG

-- $1 = xx Indian rupees

($1 = 90.4430 Indian rupees)

Tata Power Q3FY26 https://fingfx.thomsonreuters.com/gfx/mkt/dwvkqwloqvm/Screenshot%202026-02-04%20172112.png

 (Reporting by Mridula Kumar; Editing by Harikrishnan Nair and Mrigank Dhaniwala)

 ((Mridula.Kumar@thomsonreuters.com;))