Tata Power Company (TATAPOWER) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 saw the 20th consecutive quarter of PAT growth, with consolidated revenue at ₹15,697.67 crore and H1 FY25 revenue at ₹32,991.29 crore, reflecting year-over-year growth.

• PAT before exceptional items rose 51% year-over-year to INR 1,533 crore; reported Q2 PAT was ₹1,093 crore, with a 7% net profit margin.

• Manufacturing ramped up, with the 4.3 GW module plant at full capacity and cell plant stabilization expected by December.

• Large utility-scale and rooftop solar projects are progressing, with significant commissioning expected by March.

• S&P Global upgraded the rating to BBB-/Positive, and the Board approved the financial results on October 30, 2024.

Financial highlights

• Q2 FY25 revenue at ₹15,247 crore, EBITDA at ₹3,808 crore (up 23% YoY), and adjusted PAT at ₹1,533 crore (up 51% YoY).

• H1 FY25 EBITDA at ₹7,158 crore (up 17% YoY), reported PAT at ₹2,282 crore, and EPS at ₹5.94.

• One-off items included a ₹440 crore exceptional loss from the TPREL merger and regulatory asset liquidation.

• Net debt increased to ₹43,580 crore due to higher capex; net debt to equity at 1.10x.

• Receivables at ₹7,399 crore as of Q2 FY25.

Outlook and guidance

• Expecting increased power demand in winter due to severe weather and continued government directives supporting operations.

• 5 GW of under-construction renewable projects to be completed by FY26; annual renewable capacity addition targeted at 2–2.5 GW.

• Clean & Green portfolio to reach 59% of capacity post project completions, targeting 70% by 2030 and 100% by 2045.

• Focus on expanding solar rooftop, EV charging, and transmission projects; robust pipeline in pumped hydro and hybrid projects.

• Evaluating impact of new Electricity Distribution Rules, with no immediate effect on current results.