Tata Power Stock Likely to See Gains After Robust Q3

Tata Power's earnings before interest, taxes, depreciation and amortisation (Ebitda) for the October-December quarter (Q3) of FY25 was up 38 per cent year-on-year (Y-o-Y) but slightly below consensus.

- DEVANGSHU DATTA

The rise was driven by growth in the standalone business with good plant load factors (PLFs) and some positive regulatory developments for Mundra power business. Rising contribution from the renewables, cell and module businesses also helped.

Profitability at the profit after tax (PAT) level was also driven by higher other income.

Tata Power reported consolidated Ebitda of ₹3,350 crore in Q3FY25 (+38 per cent Y-o-Y). Revenue was ₹15,400 crore, (+5 per cent) for Q3FY25, while reported PAT was at ₹1,180 crore (up 10 per cent), on account of higher other income. Adjusted PAT stood at ₹1,000 crore (+8 per cent).

Tata Power commissioned 865 Mw of renewable energy (RE) generation capacity in M9FY25 (nine months of FY25), versus the guidance of 2-2.5 GW RE generation of commissioning per annum.

Cell business continued to ramp up, with 2 GW commissioned in November 2024, and another 2 GW commissioned in January 2025.