Tata Power Q4 profit, margins shrink on thermal revenue drop; dividend declared

Tata Power reported a 4.5% year-on-year decline in consolidated net profit for the March quarter, as a sharp drop in thermal generation revenue and a contraction in EBITDA margin offset steady contributions from its transmission and distribution business.

Net profit for Q4FY26 came in at ₹996 crore, down from ₹1,043 crore in the year-ago quarter. Revenue from operations fell 12.8% to ₹14,900 crore from ₹17,096 crore in Q4FY25. EBITDA declined 20% to ₹2,599 crore from ₹3,246 crore, with margins narrowing to 17.4% from 19% a year earlier.

The board recommended a final dividend of ₹2.50 per equity share for FY26, subject to shareholder approval. The record date is June 23, 2026.

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For the full year FY26, consolidated net profit rose to ₹5,118 crore from ₹4,775 crore in FY25. Revenue from operations declined to ₹62,429 crore from ₹65,478 crore a year earlier.

The renewables division was the largest full-year profit contributor at ₹4,341 crore in segment-wise results, compared with ₹2,881 crore in FY25. Transmission and distribution delivered ₹4,399 crore.

The company temporarily suspended Mundra operations from July 3, 2025 for technical overhauling. On March 23, 2026, it executed a supplementary power purchase agreement with Gujarat Urja Vikas Nigam Limited with a revised tariff, effective April 1, 2025.

The Ministry of Power has permitted plant operations from April 1 to June 30, 2026, under the revised terms, while approvals from remaining procurers are in progress.

Shares of the company ended 3.28% lower at ₹419 ahead of the results announcement on Tuesday. The stock has gained nearly 10% in this year.