Tata Power Eyes Enhanced Growth in Renewable Energy Business
Mumbai-based Tata Power announced that its renewable energy business showed a remarkable 47% increase in profit after tax (PAT) from the previous financial year, with the company projecting similar growth for the current fiscal.
The company's Managing Director and CEO Praveer Sinha attributed this improvement to the stable performance across its utility-scale, manufacturing, and rooftop segments. Revenue for the January-March quarter of 2025 (Q4FY25) stood at ₹17,096 crore, with a net profit of ₹1,042 crore and margins of 19%.
Tata Power attributes these results largely to the low competition in the cell manufacturing segment due to limited capacity in the country. The company believes it is well-positioned to cater to existing demand.
The renewable energy division added nearly 2,300 MW of capacity last year, with 1,000 MW attributed to utility-scale projects. This year's target exceeds last year's and will be completed within this financial year.
In addition, the rooftop business generated a profit after tax (PAT) of approximately ₹100 crore in the last quarter alone, indicating a high growth rate for this segment as well.
According to Sinha, there are opportunities for third-party module sales under the Domestic Content Requirement (DCR), and exports may be considered depending on the business sense. Meanwhile, cell manufacturing capacity is still limited due to existing strong market share.
Tata Power will continue to invest in projects planned but delayed last year and expects most projects to be completed within six months. This includes transmission line projects that had issues with right-of-way agreements.
Looking forward, Tata Power has a high growth target for its rooftop and cell manufacturing businesses and an aim of delivering sustainable results from core utilities.
The company currently operates several successful renewable contracts, driven mainly by long-term Power Purchase Agreements (PPAs). When those agreements end, the power plant units will be decommissioned to focus on energy security. If there are potential opportunities for thermal assets due to energy security concerns, Tata Power plans to evaluate them under a commitment of becoming net zero by 2045.