Tata Power Q2 Preview: Firm likely to post 11% rise in revenue on growth in solar EPC biz

Currently, around 14 brokerages have a buy call, five have a hold call and eight have a sell call on the stock. Shares of Tata Power have gained around 77 percent over the last one year.

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26 Aug, 2025 12:21

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Tata Power, which will announce its Q2FY25 earnings on October 30, is expected to report a 11 percent increase in revenue year-on-year (YoY) at Rs 17,522 crore in the July-to-September quarter.

The power company is also estimated to report an EBITDA margin of around 19.2 percent, marginally down from 19.6 percent in the corresponding quarter of the previous fiscal, as per the average of four brokerages.

Net profit for the quarter is expected to be around Rs 1,148 crore, representing around 12.8 percent YoY increase.

Currently, around 14 brokerages have a buy call, five have a hold call and eight have a sell call on the stock. Shares of Tata Power have gained around 77 percent over the last one year.

EPC and transmission business to drive revenue: In an October 2024 report, analysts at Nomura said that the company's EPC business has a long runway for growth, driven by a rising demand for solar energy projects in India and international markets.

“Its significant and growing order book of Rs 15,700 crore provides a high level of visibility for growth in the coming years and integrated module manufacturing business drives further efficiencies,” stated the report.

Meanwhile, analysts at Elara Securities expect Tata Power’s solar EPC business to boost its revenue. The report stated that the company has setup a 4 GW solar cell and module manufacturing plant of which the module plant has become operational and already produced 130 MW of module in Q4FY24 and 615 MW in Q1FY25, while the cell plant will be commissioned in Q2FY25 and become stabilised until December 2025.

Elara estimates revenue to rise by 9 percent YoY and PAT to be up by 11 percent YoY.

The Nomura report also highlighted that in the utility scale segment, the company had an order book of around Rs 13,000 crore. “We believe Tata Power is well-placed to capitalise on the government’s green energy push and favourable policies — PLI scheme and solar capacity addition targets,” stated the report. Currently, in the rooftop solar segment, the company is the largest player with a 13 percent market share.

Decline in margins: Analysts at JM Financial have a contra view and expect Tata Power’s net sales to remain flat with slight decline of around 8 percent in EBITDA margin due to decline in earnings from Indonesian coal mines.  They also expect the PAT to decline on account of lower other income and higher depreciation. Currently, JM Financial has a buy call on the stock.

Key things to watch out for: Long-term order book estimates on renewable power side, capex announcements.

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