Tata Power Q2 results today: Key expectations, what to watch

Tata Power Company Ltd is expected to see up to 42 per cent year-on-year (YoY) rise in consolidated net profit for the September quarter on up to 27 per cent jump in consolidated net sales for the quarter. Margin is seen declining on YoY basis. Analysts noted that thermal generation mix was 69 per cent in Q2FY27 with thermal plant load factor (PLF) accelerating to 68.3 per cent against 61.9 per cent YoY. Tata Power reported PLF of 72.6 per cent in Q2.

MOFSL expects Tata Power's consolidated revenue to rise 26 per cent YoY to Rs 19,570 crore, driven by Mundra plant being operational under Section 11 in Q2, contribution from renewable energy (RE) assets commissioned over the past year, and strong performance at the Odisha Discom. It expects Ebitda to rise 30 per cent YoY to Rs 4,300 crore and adjusted profit by 42 per cent YoY to Rs 1,300 crore.

Tata Power shares are down 16.90 per cent in the past six months against a 5.16 per cent rise in the NSE Nifty during the same period.

Nuvama Institutional Equities expects Tata Power to report 27 per cent YoY growth in adjusted profit after tax at Rs 1,168 crore in Q2, driven by higher associate profits (coal mines) and a reduction in Mundra UMPP losses to Rs 150 crore per quarter from Rs 400 crore a year ago. Revenue is seen rising 19 per cent YoY to Rs 18,504 crore from Rs 15,544 crore YoY.

"Sequential growth is likely to remain flattish on a high Q1 base. Solar manufacturing ramp-up remains encouraging, while Tata Projects, Mundra UMPP performance and consolidation of EPC/module sales remain key monitorables. Odisha DISCOM performance is expected to recover after a lull in the previous quarter," it said.

Ebitda margin is seen at 21.7 per cent against 22.7 per cent YoY.

PL Capital sees Tata Power's profit rising 10 per cent YoY to Rs 1,010 crore on 8.5 per cent YoY rise in sales at Rs 16,870 crore. Earnings are likely to be driven by better performance of distribution (Odisha, Delhi), solar order book, newly commissioned cell and module plants, it said.