Tata Power Share Price Rises 1.4% After Q2 Profit Jumps 49%

Tata Power's shares surged 1.4% to ₹365 in early trading on Thursday following a remarkable 49% rise in its Q2 profit. The power company reported a 48.6% increase in consolidated net profit to ₹1,366 crore, up from ₹919 crore in the same quarter last year. Revenue from operations climbed 26.3% to ₹19,636 crore, while total expenses grew 26.6% to ₹18,641 crore.

This profit surge was fueled by improved performance at Tata Power's Mundra thermal power plant, higher earnings from Indonesian coal associates, and robust growth in renewable energy ventures. Despite a 4.5% drop in Tata Power shares this year, their market cap is now around ₹1.16 lakh crore. The firm has kept its capital expenditure forecast at ₹25,000 crore for FY27, as it pushes ahead with expanding its power generation and renewable energy initiatives.

Tata Power also confirmed the appointment of Sanjay Banga as Chief Executive Officer and Managing Director, effective May 1, 2027, for a five-year stint. The company's earnings were boosted by a recovery at the 4 GW Mundra thermal power facility, coupled with stronger contributions from other businesses. Analysts consider Tata Power's expansion plans and renewable energy project execution as key factors influencing their investment outlook.