Tata Power surges with 31% PAT growth and record revenue in in Q1FY25—Here’s why it matters

Tata Power, a major player in India’s power sector, has reported an extraordinary performance for the first quarter of FY25. The company’s Profit After Tax (PAT) surged to ₹1,189 crore, reflecting a remarkable 31% increase from the previous year. This achievement not only sets a new record for Tata Power but also marks the 19th consecutive quarter of PAT growth, highlighting its robust operational efficiency and strategic investments.

Unprecedented Revenue and EBITDA Growth

In Q1FY25, Tata Power achieved its highest-ever consolidated revenue of ₹16,810 crore, a 12% increase year-on-year. The company’s consolidated Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) also saw an impressive rise, reaching ₹3,350 crore—up 11% compared to the same quarter last year. These figures underscore Tata Power’s strong performance across its Generation, Renewables, and Transmission & Distribution sectors.

Massive Capex Investment and Strategic Expansion

Tata Power has allocated approximately ₹4,000 crore in capital expenditure for Q1FY25, with an ambitious full-year plan of around ₹20,000 crore. This investment is aimed at strengthening its infrastructure and expanding its renewable energy capabilities. The company recently launched a new 4.3 GW solar module and cell manufacturing plant in Tirunelveli, Tamil Nadu, which generated about ₹1,000 crore in revenue in its first quarter of operation.

Major Advancements in Renewable Energy

The company is spearheading the clean energy transition with several significant initiatives. Tata Power is developing around 2 GW of Firm and Dispatchable Renewable Energy (FDRE) projects and aims to increase its clean energy portfolio to over 11 GW—56% of its total capacity—within the next 12 to 24 months. The company has also achieved a milestone of 100,000 rooftop solar installations across India, supported by its nationwide campaign, ‘Ghar Ghar Solar, Tata Power Ke Sang.’

Significant Solar and Hydropower Projects

Tata Power’s solar energy footprint continues to expand. The company has a substantial order book valued at over ₹15,500 crore for solar projects, including rooftop and group captive solar. In hydropower, Tata Power has partnered with Druk Green Power Corporation Limited to develop the 600 MW Khorlochhu Hydropower Project in Bhutan, with an estimated cost of ₹6,900 crore.

Enhanced Transmission Network and Upgraded Credit Ratings

The company has secured a bid for a 384 CKm Paradeep-Angul 765 kV sub-station project worth ₹2,300 crore, marking its first greenfield intra-state TBCB win in Odisha. Tata Power’s credit ratings have been upgraded, with ICRA and CARE Ratings raising their rating to AA+/Stable and MSCI upgrading to A, reflecting the company’s improved performance in Environmental, Social, and Governance (ESG) parameters.

Expert Insights on Tata Power’s Q1FY25 Performance

Dr Praveer Sinha, CEO and Managing Director of Tata Power, highlighted the company’s strong start to FY25, reflected in the record PAT and continued growth across all business segments. He emphasized the company’s achievements in rooftop solar installations and its leadership in sustainable mobility solutions, including a significant number of home EV chargers and public charging points. Dr Sinha also noted Tata Power’s commitment to advancing clean energy technologies and exploring new opportunities.

Tata Power’s impressive 31% growth in Profit After Tax (PAT) and record revenue of ₹16,810 crore highlights a significant milestone for the company. This surge in PAT reflects not only strong operational efficiency but also the strategic investments and business expansions undertaken by Tata Power. The substantial increase in revenue, up 12% year-on-year, underscores the company’s robust performance across its Generation, Renewables, and Transmission & Distribution sectors.

Unprecedented growth driven by strategic investments and expanding clean energy initiatives

Key drivers behind this growth include a strategic capex investment of approximately ₹4,000 crore in Q1FY25 and a full-year plan of around ₹20,000 crore. Tata Power’s commitment to expanding its renewable energy infrastructure, including the new 4.3 GW solar module and cell manufacturing plant, has positioned it at the forefront of India’s clean energy transition. Additionally, the company’s efforts in enhancing solar adoption and hydropower projects are paving the way for sustainable energy solutions.

The record revenue and PAT growth signal Tata Power’s ability to capitalize on emerging opportunities and reinforce its leadership in the energy sector. As the company continues to build on this momentum, it is well-positioned to achieve further success and contribute to India’s clean energy goals.