Tata Power Q2FY25 Earnings: Record Highs in Revenue, EBITDA & PAT

Tata Power reported an EBITDA of ₹3,808 crore for Q2FY25 earnings, marking a 23% year-over-year increase, backed by higher solar manufacturing, favourable distribution regulations, and improved operational efficiency. 

The company also reached its highest-ever half-yearly consolidated revenue of ₹32,057 crore, up by 5% YoY, with a half-yearly EBITDA of ₹7,158 crore (up 17% YoY) and a PAT of ₹2,721 crore (up 41% YoY). This quarter represents Tata Power’s 20th consecutive quarter of PAT growth.

Growth in Solar and Clean Energy Capacity

Tata Power’s clean energy portfolio surpassed 12.9 GW, with 6.4 GW operational and 6.5 GW under construction. In total, the company’s installed capacity, including both conventional and green energy, has crossed 15 GW. Tata Power’s solar cell manufacturing unit in Tamil Nadu commenced production at a 2 GW capacity, soon to be expanded by another 2 GW. The module plant reached peak production of 20,000 modules per day, generating quarterly revenues of over ₹1,400 crore, EBITDA of ~₹130 crore, and PAT of ₹66 crore.

Robust Order Book and Transmission Expansion

The solar EPC business holds a well-diversified order book valued at ₹15,900 crore. Tata Power’s transmission portfolio now includes 7,049 circuit kilometres (Ckm), with 4,633 Ckm commissioned and 2,416 Ckm under construction. The company also invested around ₹5,200 crore in capex for Q2FY25 to support its growth initiatives, bringing its H1FY25 capex to ₹9,100 crore against an annual target of ₹20,000 crore.

Advancing Nationwide Solar and E-Mobility Infrastructure

Tata Power’s rooftop solar segment, which holds an order book of ~₹684 crore, installed 111 MW in Q2FY25, bringing the year-to-date installations to 222 MW. The “Ghar Ghar Solar, Tata Power Ke Sangh” campaign has gained traction across states, including Rajasthan, UP, Kerala, and Chhattisgarh. Additionally, Tata Power installed over 11,500 home EV chargers this quarter, increasing the total to 1.15 lakh, and expanded its public charging network to 5,675 points in 590 cities.

Hydropower Expansion and Strategic Acquisitions

Tata Power acquired a 40% stake in Bhutan’s 600 MW Khorlochhu Hydro project, with agreements finalized and the project valued at ₹6,900 crore. The 1,000 MW Pumped Storage Project in Bhivpuri also received all necessary approvals, with construction expected to start in January 2025.

Credit Rating Upgrade

S&P Global Ratings upgraded Tata Power’s rating to ‘BBB—’ from ‘BB+’ with a positive outlook. The company cited its steady growth, improved cash flows, and stronger alignment with group operations as reasons for the upgrade.

Dr Praveer Sinha, CEO and Managing Director of Tata Power said, “Our Generation, Transmission & Distribution, and Renewable businesses continue to witness sustained growth momentum as India sees record power demand and investment in the new Age of Electricity. All our business segments have performed remarkably well during the quarter, leading to 20th consecutive quarterly PAT growth.”

On October 31, 2024, Tata Power share price opened at ₹430.50 and touched the day high of ₹436.00 at 09:48 AM on the NSE. 

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