Q2 FY27 results analysis · November 11, 2026
Tata Power Q2 FY27 Results Analysis: PAT Jumps 48.58%, Guidance Misses Weigh (TATAPOWER)
+32.6%PAT year on year, Rs. 1,652.04 Cr
Source: Quarterly results filing (BSE)
Quick summary
Tata Power Company Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 19,635.94 Cr (+26.32% YoY) and PAT growth of +32.65% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 11, 2026 |
|---|---|
| Revenue (Q2) | Rs. 19,635.94 Cr (+26.32% YoY) |
| PAT (Q2) | Rs. 1,652.04 Cr (+32.65% YoY) |
| EBITDA margin | 24.10% (-267 bps YoY) |
| EPS (Q2) | Rs. 4.27 (+48.26% YoY) |
Quarter Snapshot
Revenue grew 26.32% YoY with owners' PAT up 48.58%, driven by the Mundra restart at pass-through economics with stable-to-improving margins, and H1 CFO of Rs.6,136.81 Cr was 2.01x PAT. However, management missed its own prior guidance on Q2 capex, RE commissioning, and Mundra SPPA conclusion, and the unprovided Kleros arbitration (USD 490.32 m award, shares attached up to SGD 830.77 m) carries an auditor emphasis-of-matter. Execution on the FY27 Rs.25,000 Cr capex and 2.5–3 GW RE targets requires a decisively heavier H2.
Q2 FY27 Expectations vs Results
| Driver | What happened | Verdict |
|---|---|---|
| "likely ahead to in-line" revenue; "Mundra is directed to run at full available capacity for the entire quarter" | Revenue +26.32% YoY — ahead | Played out |
| Margins "mixed — Mundra pass-through cushions coal, but procurement and finance costs press" | Margin 24.10% vs 26.77% YoY (−267 bps); EBITDA still +13.74%; finance costs +5.03% only | Partially |
| Falling module ASPs "argue against a repeat of Q1's +332 Cr TP Solar bridge contribution" | Renewables result +7.89% YoY; sub-segment split absent from the filing | Not observable |
| Q2 capex ">Rs.6,000 Cr (~Rs.6,500 Cr)" | Derived Rs.4,457.62 Cr (cash-flow basis) | Contradicted |
| RE commissioning 800–900 MW | 419 MW utility-scale (Oct 12, 2026 announcement) — scope caveat | Contradicted |
| "rising refinance-pricing backdrop" for finance cost | Finance costs +5.03% YoY, down QoQ — contained | Contradicted |
| Kleros: "whether any provision posture changes" | No provision held; enforcement escalated (attachment notices Nov 6, 2026) — stance unchanged; risk up | Played out |
| Mundra SPPA signatures "at an advanced stage" | Not concluded; Section 11 extended to Dec 31, 2026 — slipped | Contradicted |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Q2 FY27 capex "higher than Rs.6,000 crores… closer to Rs.6,500 crores" | Q1 FY27 earnings call (Jul 27, 2026) | Derived Rs.4,457.62 Cr (H1 cash-flow capex 9,832.62 − Q1 announced 5,375; cash-flow basis, definition may differ) | Missed |
| Q2 FY27 RE commissioning 800–900 MW | Q1 FY27 earnings call | 419 MW utility-scale TPREL disclosed Oct 12, 2026 (pre-results announcement); filing silent on quarterly MW — scope caveat: utility-scale TPREL vs total | Missed |
| FY27 group capex Rs.25,000 Cr | Q1 FY27 results/call | H1 cash-flow-basis capex Rs.9,832.62 Cr — under half the target at half-year | Stretch |
| FY27 RE execution 2.5–3 GW | Q1 FY27 call | H1: 645 MW + 161.2 MWhr storage | Stretch |
| TPREL ~9.3 GW FY27 commissioning; ~12 GW operational by end-FY28 | Company announcement, Oct 12, 2026 | H1: 645 MW; TPREL operational ~7.2 GW (Nov 5, 2026) | Stretch |
| Mundra SPPA with other procurers "in the next few weeks" | Q3 FY26 earnings call | Not concluded as of the Nov 11, 2026 filing; Section 11 extended only to Dec 31, 2026 | Missed |
| Net Debt/EBITDA ~4x guardrail (AA Plus) | Q4 FY26 call | Derived proxy 3.54x (company basis 3.3–3.4x) | Met |
Key Investment Insights
Key Positives
- Revenue grew 26.32% YoY to Rs.19,635.94 Cr; H1 revenue +15.21% YoY
- Owners' PAT grew 48.58% YoY to Rs.1,366.11 Cr; normalized PAT +22.16% to Rs.1,521.36 Cr
- Thermal & Hydro segment revenue +151.86% YoY on the Mundra restart, with margin up to 18.13% from 17.68%
- H1 CFO of Rs.6,136.81 Cr vs Rs.802.95 Cr prior year; CFO/PAT at 2.01x
- Share of associates & JVs profit +277.13% YoY to Rs.486.80 Cr
- Finance costs contained at +5.03% YoY and down QoQ despite Rs.9,832.62 Cr H1 capex
- Net debt/EBITDA at 3.54x, inside the ~4x guardrail; interest service coverage improved to 2.59x from 2.37x
- NCI share of consolidated PAT fell to 17.30% from 26.17%, with more profit accruing to owners
Risk Factors
- Kleros arbitration (USD 490.32 m award plus interest and SGD 11.34 m costs) remains unprovided; enforcement escalated to attachment of Singapore subsidiary shares up to SGD 830.77 m, with auditor emphasis-of-matter
- Mundra SPPA with remaining procurers not concluded; Section 11 extension runs only to December 31, 2026
- Q2 capex of ~Rs.4,457.62 Cr (derived) missed management's stated '>Rs.6,000 Cr' target; H1 capex under half the FY27 Rs.25,000 Cr plan
- RE commissioning of 419 MW in Q2 (645 MW in H1) vs management's 800–900 MW quarterly and 2.5–3 GW FY27 targets
- EBITDA margin compressed 267 bps YoY to 24.10% as fuel cost rose 243.93% YoY
- T&D segment result fell 3.36% YoY against a high base
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