Tata Power Reports Robust Q4 Performance, Revenue Up 7.9%

Tata Power, a prominent integrated power company in India, has reported a strong financial performance for the fourth quarter of the fiscal year 2025, aligning with market expectations. The company's consolidated revenue and profit both registered significant growth, underpinned by steady performance across its core business areas and effective cost management.

Key Financial Highlights

For the quarter ended 31 March 2025, Tata Power's consolidated revenue stood at ₹17,095.88 crore, representing an increase of nearly 8% compared to ₹15,846.58 crore in the corresponding period last year. Net profit for Q4 FY25 saw a substantial 16.5% rise, reaching ₹1,042.83 crore, up from ₹895.21 crore in Q4 FY24. The improved profitability was attributed to effective cost control measures, enhanced efficiency within the power distribution segment, and consistent demand from its customer base.

On a sequential basis compared to the third quarter of FY25, the company reported a 1.2% uptick in profit after tax from ₹1,030.70 crore, and an 11.1% increase in topline from ₹15,391.06 crore. Furthermore, EBITDA climbed by 14% to ₹3,829 crore in Q4 FY25, against ₹3,358 crore in the same quarter the previous year. The company highlighted that this EBITDA growth was supported by robust performance across generation, transmission & distribution (T&D), and renewables businesses.

Performance Across Segments and Outlook

Growth in the final quarter of FY25 was broad-based, with strong contributions from key segments. The power generation business delivered steady output from its thermal, hydro, and renewable sources. The distribution business witnessed consistent expansion in its customer base, particularly in major urban centres like Mumbai and Delhi. The renewable energy segment played a crucial role, with expanding solar and wind capacity adding to revenue growth and reinforcing the company's commitment to sustainable development.

Looking ahead, Tata Power anticipates maintaining its growth trajectory, supported by the expansion of its renewable energy footprint, its established leadership in power distribution, and its growing EV charging business. However, the company acknowledges the need to vigilantly monitor input costs and manage operational efficiency to safeguard margins.

Board Recommends ₹2.25 Final Dividend; AGM Set for 4 July 2025

In addition to the strong quarterly results, the company's board has proposed a final dividend of ₹2.25 per share for the fiscal year 2025. This proposal is pending approval from shareholders at the upcoming 106th Annual General Meeting scheduled for Friday, 4 July 2025. The record date for the dividend has been set as Friday, 20 June 2025.

Tata Power's steady revenue and profit growth in Q4 FY25 reinforce its position as a leader in the Indian power sector, actively participating in the country's clean energy transition. On the day of the announcement, shares of Tata Power closed trading on the NSE at ₹ 398.05, showing a gain of 2.25%. 

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