Tata Power Co. Q1 FY27 Results (NSE: TATAPOWER)
Signal: Growth reaccelerated
The read
Consolidated PAT grew 11% YoY but was entirely other-income and JV-profit aided — EBITDA actually declined 2% YoY and OPM held flat at 15%; standalone PAT crashed 47% YoY, confirming group earnings rely heavily on renewables and distribution subsidiaries; the renewables segment profit crossed ₹1,200 Cr for the first time, but group EBITDA margin compressed 185bps to 23.1% as fuel and power purchase costs rose faster than revenue.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹19,051.26 Cr | 5.6% | -69.5% |
| EBIT | ₹3,141.82 Cr | -5.9% | |
| Net profit | ₹1,400.86 Cr | 11.0% | |
| EPS | ₹3.68 | 11.2% |
P&L walk
Revenue grew 5.6% YoY but EBITDA fell 2.2% as cost of power purchased and fuel rose; other income (₹388 Cr, +7.4% YoY) and equity-accounted JV/associate profit (₹241 Cr) lifted PBT; net profit +11% YoY was entirely aided by lower tax (₹422 Cr vs ₹357 Cr) and higher other income — operating quality weakened.
Segments
Renewables segment profit rose 7.6% YoY to ₹1,210 Cr, now the largest contributor to segment results (40%), while T&D profit was flat (+7.4% YoY) and Thermal & Hydro profit grew 28.8% YoY to ₹1,098 Cr; Others segment remained loss-making at ₹(76.68) Cr.
Key positives
- Renewables segment profit ₹1,210 Cr (+7.6% YoY), now the largest segment contributor.
- Transmission & Distribution revenue grew 13.5% YoY to ₹11,441 Cr.
- Receivable days improved to 72 from 86 in Q4FY26; inventory days down to 71 from 113.
- Interest Service Coverage Ratio stable at 2.38x vs 2.36x a year ago.
Key concerns
- Consolidated EBITDA fell 2.2% YoY despite 5.6% revenue growth — cost of power purchased (+17.2% YoY) and fuel costs (+8.8% YoY) outpaced topline.
- Standalone PAT plunged 46.7% YoY — core parent operations under pressure.
- Other income at 22.4% of consolidated PBT (₹388 Cr) flattered headline PAT; underlying operating profit declined.
- Finance costs rose 9.9% YoY to ₹1,407 Cr, reflecting higher leverage (D/E 1.63x vs 1.49x a year ago).
- Thermal & Hydro segment assets fell 0.8% QoQ while segment revenue declined — Mundra plant operational disruption noted.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.