Tata Power Company Limited is India’s leading vertically integrated power company, generating revenue through thermal, hydro, and renewable energy sources. The company is steadily shifting its focus towards clean and renewable energy to drive future growth. In this article, we explore how Tata Power makes money, its future plans, revenue guidance, and the company’s vision for sustainable growth.
Stock Price Movements:
With a market capitalization of Rs. 1,36,856.39 crore, the shares of Tata Power Company Limited closed at Rs. 428.30 per equity share, down nearly around 1.23 percent from its previous day’s close price of Rs. 433.65.
Company Overview:
Tata Power Company Limited is India’s leading vertically integrated power company, involved in electricity generation, transmission, and distribution. As a pioneer in renewable energy solutions, the company is committed to achieving 100% green power production and has ambitious plans to establish 100,000 EV charging stations by 2025.
Revenue Analysis:
Tata Power generates revenue from multiple business segments, with a notable contribution from core areas such as thermal & hydrogeneration, renewables, and transmission & distribution.
Thermal & Hydro Generation, Coal & Shipping: In this segment, the revenue has declined by 3%, from Rs. 9,800 crore in H1 FY24 to Rs. 9,526 crore in H1 FY25. Reported PAT also saw a reduction of 13%, dropping from Rs. 1,370 crore to Rs. 1,193 crore.
Renewables: The revenue from the Renewables segment grew by 1%, from Rs. 4,235 crore in H1 FY24 to Rs. 4,297 crore in H1 FY25. Reported PAT grew by 35% from Rs. 426 crore to Rs. 573 crore, reflecting the rising segment in Tata Power’s portfolio.
Transmission & Distribution: This segment experienced a 10% increase in revenue, from Rs. 18,731 crore to Rs. 20,681 crore. Reported PAT also saw significant growth, rising by 48% from Rs. 683 crore to Rs. 1,013 crore.
Others Operating Income: Revenue has dropped slightly by 3.66%, from Rs. 216.35 crore in H1 FY24 to Rs. 208.43 crore in H1 FY25.
Revenue and net profit guidance:
Tata Power’s financial outlook shows substantial growth in both revenue and net profit from FY24 to FY30. In FY24, the company recorded a revenue of Rs. 61,542 crore, with
projections indicating an increase to Rs. 1,00,000 crore by FY30, representing a 1.6x growth over the next few years.
Similarly, the net profit (PAT) for FY24 stood at Rs. 4,109 crore, and Tata Power expects this to grow to Rs. 10,000 crore by FY30, marking a 2.5x increase. Renewable energy will contribute to 50 % of the net profit of Tata Power, which means Rs. 5,000 crore in FY30.
Capital Expenditure:
Tata Power has planned a capital expenditure (capex) of Rs. 1.46 trillion between FY25 and FY30, with a substantial portion (approximately 60%) allocated to the renewable energy sector. The company’s capex allocation over the years shows a steady increase in investment, rising from Rs. 12,184 crore in FY24 to Rs. 25,000 crore annually from FY26 to FY30.
Notably, the investment in renewables will dominate this capex, reflecting Tata Power’s commitment to expanding its clean energy portfolio. The renewable sector, including solar, wind, and other green initiatives, is poised to receive 60% of the total capex, signaling a major shift toward sustainable energy solutions.
The remaining capex is distributed across various segments, which include transmission (20%), distribution (7%), traditional generation & others (3%), and pumped storage & hydro (10%).
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Capacity Mix:
Tata Power Company Limited’s total capacity stands at 25,605 MW. This mix includes a significant contribution from thermal (8,860 MW), wind (1,034 MW), solar (4,335 MW), water heat recovery (443 MW), and hydroelectric (880 MW) sources.
Tata Power Company Limited’s clean and green capacity of 10,053 MW highlights the company’s commitment to a balanced and sustainable energy generation strategy.
Company Vision 2030:
Tata Power has a total capacity of around 15.6 GW, with 6.7 GW of clean and green capacity. By fiscal year 2030, the company aims to increase its total capacity to around 31.9 GW, with 23 GW of clean and green capacity.
In terms of transmission lines, Tata Power currently has 4,633 km of transmission lines. Looking ahead to fiscal year 2030, the company plans to expand this to around 10,500 km of transmission lines.
Finally, Tata Power currently serves 12.5 million customers through its distribution network. By fiscal year 2030, the company aims to increase this to approximately 40 million customers.
Future Plans:
Some of the future plans of Tata Power Company Limited are given below:
● By 2045, the company plans to achieve 100% clean and green power generation. ● The company will be expected to produce cell and module facilities of 4 GW each, respectively, in FY26.
● The company’s solar rooftop revenue is estimated to reach Rs. 11,000 crore, which will grow at a CAGR of 36 percent between FY24 and FY30.
Written By – Nikhil Naik
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