Tata Power, a significant player in India's power industry, has announced impressive financial results for the fourth quarter of the fiscal year 2024-25. The company experienced substantial growth in both its net profit and revenue, alongside the declaration of a final dividend for its shareholders, signalling a positive outcome for investors.
This strong performance is primarily due to the remarkable expansion of its renewable energy sector and the considerable improvement in the operational efficiency of its distribution companies in Odisha.
- Tata Power's Q4 FY25 revenue from operations rose ~8% YoY to ~₹17,100 crore, with net profit up 25% at ₹1,306 crore This marked the 22nd straight quarter of profit growth.
- For FY25, consolidated PAT was a record ₹5,197 crore and revenue ₹64,502 crore (highest-ever). EBITDA also hit a new high.
- The Board has recommended a final dividend of ₹2.25 per share for FY25. Shareholders will vote on it at the AGM on 4 July, with a record date of 20 June 2025. If approved, the dividend will be paid from 7 July.
- Renewables led growth: Q4 FY25 PAT from renewables jumped 62% YoY to ₹469 crore, with full-year renewables PAT at ₹1,256 crore (+48% YoY). The rooftop solar business also did well (₹100 crore Q4 PAT, ₹209 crore FY25).
- Transmission & Distribution (T&D) was a standout segment. Q4 T&D PAT rose ~50% to ₹616 crore, driven largely by Odisha distribution companies: Odisha DISCOMs’ PAT surged 207% to ₹275 crore in Q4 (and 43% for FY25).
- Solar manufacturing (TP Solar) remained a key growth engine: it reported FY25 PAT of ₹422 crore on revenues of ₹5,337 crore (production: 3,291 MW modules, 846 MW cells).
- Share price reaction: Tata Power’s stock jumped on the results. On 15 May it spiked as much as 1.9% to ₹404.55 intraday, and settled around ₹398 on the NSE (about a 2% gain).
- Analyst views: Brokers are mostly positive. Motilal Oswal (MOFSL) and Antique Stock Broking both reiterate Buy ratings with targets ~₹476–₹477 (implying ~20% upside), while Nuvama retains a Reduce call and ₹374 target.
- Outlook: Management called FY25 “remarkable” and is planning aggressively for FY26. Tata Power will invest ~₹25,000 crore capex next year (50% in renewables), and target adding ~2.5–2.7 GW of new capacity (vs 2.3 GW added in FY25). It is also eyeing expansion in power distribution (bidding for two UP discoms) to support growth.
Let’s see the above in detail in this article.
Tata Power Strong Q4 FY25 Results Drive Profit Growth
Tata Power posted strong Q4 FY25 earnings. Revenue from operations grew to about ₹17,100 crore (up ~8% YoY). Net profit for the quarter was ₹1,306.09 crore, a 25% year-on-year increase.
This drove consolidated PAT for FY25 to a record ₹5,197 crore (up 26%), on revenue ₹64,502 crore (up 5% YoY). Underlying EBITDA also hit new highs. Management credited higher power sales across plants, ramped-up solar manufacturing (Tirunelveli), and a boom in rooftop solar installations (reaching 1.5 lakh homes) for the growth.
Tata Power’s CEO, Praveer Sinha, noted FY25 was “remarkable” with “record-breaking PAT exceeding INR 5,000 crore”. He highlighted that Q4 marks 22 quarters of consecutive profit growth. On outlook, Sinha said the company is targeting even faster growth: it added over 1 GW of renewable capacity in FY25 and now plans to add 2 GW in FY26.
Tata Power Dividend Proposal and AGM Details
Alongside the results, Tata Power announced a proposed final dividend of ₹2.25 per share for FY25. This is up from ₹2.00 last year. The dividend is subject to shareholder approval at the 106th AGM on 4 July 2025. Once approved, payment is expected from 7 July, 2025. The record date for eligibility has been set as 20 June 2025.
Key points:
- Board has recommended ₹2.25 dividend per share for FY25.
- AGM scheduled for 4 July 2025 (dividend subject to approval).
- Record date: 20 June 2025.
- Dividend payment from 7 July if passed.
This dividend news and the robust results likely helped the stock gain investor support.
Tata Power Business Segment Performance
Tata Power’s growth in Q4 FY25 was broad-based across its core businesses. Highlights by segment include:
- Transmission & Distribution (T&D): This remained a major profit driver. T&D segment PAT jumped ~50% YoY in Q4 to ₹616 crore. Much of this was led by the Odisha distribution utilities (Odisha DISCOMs), whose Q4 PAT soared 207% YoY to ₹275 crore (FY25 PAT ₹439 crore, +43%). Improved billing/collection efficiency and operational performance in Odisha drove this gain. Overall, full-year T&D PAT rose 37% from FY24.
- Renewable Energy: The renewables business saw robust double-digit growth. Renewables PAT was ₹469 crore in Q4 (up 62% YoY). For FY25 the renewables segment contributed ₹1,256 crore PAT (up 48% YoY). This was fueled by commissioning of new solar/wind projects and higher output. Tata Power also added 2.5 GW of renewable capacity in FY25 (including 1 GW utility-scale projects).
- Rooftop Solar: The rooftop/solar EPC arm continued to shine. It posted ₹100 crore PAT in Q4 FY25 (crossing this milestone for the first time) and ₹209 crore for FY25. The company now leads India’s rooftop segment, with over 1.5 lakh installations totalling ~3 GW capacity.
- TP Solar (Manufacturing): Tata Power’s solar cell/module manufacturing arm (TP Solar) grew significantly. In FY25 TP Solar reported ₹422 crore PAT on revenues of ₹5,337 crore. The Tirunelveli plant (4.3 GW modules, 4.3 GW cells capacity) produced 3,291 MW of modules and 846 MW of cells during the year. The efficiency gains here contributed strongly to consolidated earnings.
These segment results indicate Tata Power’s diversified model – spanning power generation, distribution, solar, and manufacturing – is delivering synergies. In particular, Odisha’s turnaround and the fast-growing solar businesses underpinned the strong earnings.
Tata Power Share Price Reaction
Tata Power’s share price gained on the back of these healthy results. On 15 May 2025, the stock spiked nearly 2% in early trade. It hit an intraday high of ₹404.55 on the BSE (up ~1.90%) as investors cheered the earnings beat. By late morning Tata Power share price was trading around ₹396–₹397. To know the latest share price of Tata Power, visit the company page.
Analysts noted that the robust PAT growth, record revenues, and a higher proposed dividend all supported the stock. The rally was also fuelled by Tata Power’s strategic announcements (renewables targets, capex plans, etc.). Overall, the market reaction was broadly positive, reflecting confidence in the company’s performance.
Analyst Ratings and Price Targets for Tata Power
Brokerages remain cautiously optimistic on Tata Power. Many analysts see further upside based on the improved fundamentals:
- Motilal Oswal (MOFSL): Maintains a Buy rating with a ₹476 target. MOFSL values Tata Power’s regulated businesses at ~2.5x book value and assigns high multiples to its growing renewables and manufacturing arms.
- Antique Stock Broking: Also advises Buy, with a ₹477 target. Antique highlights catalysts like new renewable projects (2–2.5 GW additions p.a.), solar EPC orders, pumped storage, and potential nuclear investments.
- Nuvama (formerly Edelweiss): Retains a Reduce rating, target ₹374. Nuvama notes that near-term growth may be “back-ended and priced in,” despite liking the long-term renewables and manufacturing story.
On average, analyst targets imply roughly 10–20% upside from recent levels (based on ₹470–480 targets). Most still see the stock as fairly valued given the strong outlook, but few expect a sharp near-term repricing.
Tata Power Management Commentary and FY26 Outlook
Management commentary around the results was bullish. CEO Praveer Sinha emphasised that FY25’s performance was driven by “exceptional contributions across all our business segments”.
He pointed out the landmark achievement of breaching 1 GW of renewable additions in a year (with a 2 GW target for FY26). Sinha also highlighted the rooftop milestone (1.5 lakh installations) and the Tirunelveli plant ramp-up that produced 3,291 MW of modules and 846 MW of cells.
Looking ahead, Tata Power is gearing up for further expansion. Key management guidance includes:
- Capex Plans: Capex for FY26 is set at about ₹25,000 crore – a substantial increase from ~₹16,000 crore spent in FY25. Half of this capex will go into renewables, with the rest split between generation (incl. hydro/pumped) and T&D.
- Capacity Additions: The company added ~2.3 GW in FY25 and aims to add 2.5–2.7 GW in FY26. This includes utility-scale wind/solar and more rooftop projects.
- Distribution Expansion: Tata Power is pursuing new distribution opportunities. Management said it plans to bid for two power DISCOMs in Uttar Pradesh (Dakshinanchal and Purvanchal) as they come up for privatisation as part of its strategy to grow the T&D business.
- Diversification: The firm is preparing for future sectors. It has begun groundwork for small modular reactors (subject to legal clearances) and won approvals for pumped hydro projects (1,000 MW Bhivpuri, 1,800 MW Shrinagar) to add clean baseload capacity.
- Renewable Funding: Tata Power secured $4.25 billion from the Asian Development Bank for clean energy investments, and signed purchase agreements for 7,000 MW of projects in Andhra Pradesh (₹49,000 crore). This improves its global funding access and credibility.
In short, management signalled continued investment in the energy transition. With 44% of its current 15.7 GW portfolio already renewable, the company is confident of accelerating growth. Sinha reiterated the FY26 target of adding 2 GW of renewables and driving India’s clean energy push. The upbeat guidance and strategy – from bidding for new DISCOMs to ramping manufacturing – underline management’s positive outlook for FY26.
In conclusion, Tata Power’s Q4 FY25 results show healthy profit growth, aided by its renewable and distribution businesses. The stock responded positively, and analysts generally see further gains. Investors will watch the AGM for dividend approval and monitor how Tata Power executes its aggressive FY26 plans.