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Tata Power Company Ltd (TATAPOWER): Q2 FY27 results (Jul-Sep 2026)

Tata Power Company (TATAPOWER) No replies

Vishal @vishal #1

Consolidated figures, ₹ crore. Results announced 11 Nov 2026.

MetricQ2 FY27YoYQoQ
Revenue from ops19,635.9+26.3%≈+3.1%
EBITDA3,668≈+11%≈−5%
EBITDA margin18.7%21.2%≈20.3%
Other income (≈)≈328≈505—
PBT2,179.9≈+30%≈+20%
PAT, total1,652.0+32.6%≈+17.9%
PAT to owners1,366.1+48.6%≈+16.2%
PAT margin (owners)7.0%5.9%6.2%
EPS (₹)4.272.883.68

Margin, other income and EPS rows show year-ago and last-quarter values. ≈ = my calculation; Q1 FY27 = H1 minus Q2; Q1 EBITDA from Screener. "—" = Q1 other income not available on the same basis.

Source note: Free Press Journal's headline uses total PAT ("+33% to ₹1,652 cr"); Upstox and others use owners' PAT ("+49% to ₹1,366 cr") [1][2][3]. Both are right; they measure different things.

Quality of earnings

  • Operating profit was flat. Profit before regulatory items, JV/associate share, one-offs and tax was ₹1,323.7 cr vs ₹1,326.7 cr a year ago [2]. The PBT growth came from items below that line (my calculation).
  • One-off: a net exceptional gain of ₹119.2 cr: a ₹317.4 cr gain from no longer treating Tata Projects as an associate, less ₹198.2 cr of impairments [2][3]. Without it, owners' PAT is roughly ₹1,250 cr, still about +36% (≈, my calculation, assuming no tax on the gain).
  • Pass-through revenue: fuel cost jumped to ₹4,633 cr from ₹1,347 cr [2]. The Mundra plant has run under a government order since April [3], and thermal & hydro revenue rose 2.5x. That inflates revenue and lowers the margin %, though EBITDA still rose ~11% (my view).
  • Why owners' PAT grew faster: the minority share fell to ₹286 cr from ₹326 cr (my calculation).

Margins (Chart 3)

EBITDA margin: 21.2% → 21.9% → 17.4% → 20.3% → 18.7% [1][4].

Segments (Chart 5) [3]

  • Thermal & hydro: result ₹1,067 cr vs ₹413 cr.
  • Renewables: ₹1,230 cr vs ₹1,140 cr (+8%).
  • Transmission & distribution: ₹987 cr vs ₹1,021 cr (−3%).

Key risk: Singapore arbitration

An arbitration award of USD 490 mn plus interest stands against Tata Power. On 6 Nov a court sheriff served attachment notices on its shares in some Singapore subsidiaries. The company has appealed; no provision has been made, and the auditor drew attention to it [2][3].

Other: board approved the 1,800 MW Shirwata pumped-storage project (₹11,871 cr) [1]. H1 capex about ₹10,000 cr; debt-to-equity 1.62x vs 1.58x [1][3]. No numeric guidance in coverage.

Positives

  • Owners' PAT +49% [1]
  • Renewables profit growing [3]

Concerns

  • Flat operating profit before regulatory items (my calculation)
  • Arbitration exposure without provision [2]
  • Rising debt [3]

Things to track in Q3 FY27

  1. Singapore appeal outcome (submissions due 23 Nov)
  2. Mundra operating order (extended to 31 Dec 2026) [3]
  3. EBITDA margin
  4. Renewables capacity additions

Not a buy/sell recommendation. I am not a SEBI-registered analyst. Facts are sourced; opinions are labelled.

Sources [1] Upstox – Q2 results · [2] Free Press Journal – Q2 results · [3] BW Businessworld – Q2 results & segments · [4] Screener.in – consolidated · [5] InvestyWise – results

Charts: (1) 5 quarters revenue & total PAT with EPS (2) FY23–FY26 [4]; (3) margins [1][4]; (4) segments [3].

Author's disclosure: Not invested

Posts are members’ own views and are not investment advice. Holdings shown are what each member disclosed when posting. Research notes are by SEBI-registered analysts under their own registration; Mudraa hosts them and does not endorse them.

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