Tata Power Q3 Results: Profit Falls 25%, Revenue Drops 9%

Tata Power Announces Q3 FY26 Earnings: Tata Power released its financial results for the October–December quarter of FY26 on February 4. The utility major reported a softer quarter on the profit front, even as it continued to scale its clean energy and distribution businesses.

Net Profit Drops 25% Year-on-Year: The company posted a consolidated net profit of Rs. 772 crore for Q3 FY26, marking a 25% decline compared to Rs. 1,031 crore reported in the same quarter last year. The drop was partly influenced by exceptional costs and muted demand growth.

Revenue from Operations Declines 9%: Revenue from operations fell 9% year-on-year to Rs. 13,948.41 crore, down from Rs. 15,391.06 crore in Q3 FY25. Power demand during the quarter remained largely flat, unlike the 7% growth seen a year earlier.

One-Time Labour Code Expense Impacts Numbers: Tata Power reported a one-time exceptional expense of Rs. 78 crore linked to the implementation of new labour codes that came into effect last year, adding pressure on quarterly profitability.

EBITDA and PAT Show Operational Strength: Despite the headline profit decline, EBITDA rose 12% year-on-year to Rs. 3,913 crore, reflecting operational efficiency. Reported profit after tax increased marginally by 1% to Rs. 1,194 crore during the quarter.

Renewables, Transmission, and Distribution Perform Well: Management highlighted strong execution across generation, renewables, transmission, and distribution. The company crossed 10 GW of cumulative renewable EPC execution and achieved record solar cell and module output, while rooftop solar installations moved beyond 4 GWp.

Management Confident About Long-Term Growth: CEO & MD Praveer Sinha said Tata Power is well-positioned for 2026, supported by rising power demand from manufacturing, urbanisation, and AI-led digital infrastructure. The company remains focused on scaling clean energy, strengthening grid resilience, and delivering sustainable long-term growth. The above information is based on a Moneycontrol report and is for educational purposes only.

Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp