Tata Power Shares Slip 2% as Q3 Revenue Drops 4% YoY
Renewables and distribution drive earnings, but weaker quarterly revenue weighs on investor sentiment.
Mumbai, Feb 05 : Tata Power shares dropped around 2% to Rs 364.50 on Thursday after the company reported mixed financial results for the third quarter of FY26, marked by a revenue contraction even as profitability improved.
Quarterly revenue stood at Rs 14,485 crore, reflecting a 4% year-on-year decline from Rs 15,118 crore. However, profit after tax (PAT) inched up 1% to Rs 1,194 crore. For the first nine months of the fiscal year, PAT rose 7% to Rs 3,702 crore, while revenue increased marginally by 1% to Rs 47,719 crore.
Operational performance remained strong, with EBITDA climbing 12% to Rs 3,913 crore compared with Rs 3,481 crore in the corresponding period last year.
The company continued to expand its clean energy footprint, executing roughly 1.3 GW of renewable projects during the quarter and surpassing 10 GW in cumulative renewable engineering, procurement and construction (EPC) execution. Total installed capacity has now reached 16.3 GW.
The renewables segment emerged as a standout performer, delivering a 156% surge in quarterly PAT to Rs 547 crore. Segment EBITDA rose 66%, while revenue jumped 78%. Growth momentum extended across solar manufacturing and rooftop installations, supported by higher utilisation levels and expanding demand. During the quarter, the rooftop business added over 58,000 installations, taking the overall customer base beyond three lakh.
Distribution operations also recorded robust gains, with quarterly profit climbing sharply. Odisha DISCOMs and the transmission business both reported solid increases, underscoring the strength of the regulated utilities portfolio.
On the infrastructure front, Tata Power is progressing with the 1,000 MW Bhivpuri pumped storage project in Maharashtra to enhance round the clock renewable supply. Meanwhile, the 1,125 MW Dorjilung hydro project in Bhutan has secured $500 million in World Bank backed long term financing, with an equivalent amount planned through market syndication as part of a larger clean energy partnership.
Despite strong operational metrics and segmental growth, the dip in top line performance appeared to dampen market sentiment, leading to a pullback in the stock.
