Tata Power’s Residential Rooftop Solar Business Grew 87% YoY in Q1 FY24

The company reported net profit growth for the 15th consecutive quarter


Tata Power, an integrated power company, reported a net profit of ₹11.41 billion (~$137.71 million) in the first quarter (Q1) of the financial year (FY) 2024, marking a growth of 29% year-over-year (YoY).

Strong performance across all business segments led to the increase in profits.

The company reported a net profit growth YoY for the 15th consecutive quarter.

Tata Power’s consolidated revenue stood at ₹150.03 billion (~$1.81 billion), a marginal increase of 2% YoY, on the back of higher sales across distribution companies (DISCOMs) and renewable capacity additions.

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 43% to ₹30.05 billion (~$362.67 million), registering a growth of 43% YoY. The growth in EBITDA was due to lower under-recovery in the Mundra plant and a positive regulatory order for Maithon Power.

At the end of the April-June period, the utility-scale order book stood at 4.2 GW, worth ₹176.43 billion (~$2.13 billion). The rooftop solar and group captive order book stood at ₹25.04 billion (~$302.21 million).

The company’s residential rooftop solar business reported a growth of 87% YoY to reach a capacity of 18 MW.

The company said a 4 GW greenfield solar cell and module manufacturing unit in Tamil Nadu will become operational in this financial year.

Praveer Sinha, CEO and MD of Tata Power, said, “We have delivered a 15th consecutive quarter of profit after tax (PAT) growth on the back of strong performance across all business clusters. We have planned nearly ₹120 billion (~$1.45 billion) of Capital Expenditure (CAPEX) for the current financial year that would help us lead the green energy transition and in the growth opportunities in the transmission and distribution business.”

“Tata Power is well poised to develop round-the-clock (RTC) renewable power solutions. We are making significant progress in developing solutions around battery storage, pumped hydro projects, and other hybrid solutions. This will support the RE100 agenda of large enterprises and also contribute towards clean energy solutions for our C&I consumers,” he added.

Recently, Tata Power has entered into a memorandum of understanding with the Maharashtra government to develop pumped hydro storage projects with a combined capacity of 2,800 MW. These projects will be situated in the Pune and Raigad districts.

Tata Power Renewable Energy has been granted a letter of award to establish 966 MW of RTC power projects for Tata Steel.

In another endeavor, the company is in the process of setting up 1,018 e-bus charging points as part of the Tata Motors CESL project. These charging points will be located in Delhi, Jammu, Srinagar, and Bengaluru.

Tata Power has installed 59 fast charging stations along key highways that connect cities such as Jaipur, Ajmer, Bikaner, Jodhpur, Sri Ganganagar, Barmer, Mount Abu, Chittorgarh, and Alwar.

Over the next five years, the company aims to grow its network of EV charging points to over 25,000. It already deployed more than 50,000 home chargers, and over 4,370 public and semi-public charging points and 280 bus charging points.

The total smart meter installation numbers reached 650,000 across Tata Power DISCOMs in Odisha, Delhi, and Mumbai.

The company’s profit after tax grew 48% YoY to ₹9.39 billion (~$115 million) for the fourth quarter of FY 2023, mainly driven by higher sales across DISCOMs and higher renewable capacity addition.

In April this year, the Asian Development Bank said it would invest in non-convertible debentures worth ₹1.5 billion (~$18.2 million) issued by Tata Power Delhi Distribution, the distribution unit of Tata Power. Additionally, the partnership will partially fund a 10 MWh pilot battery energy storage system through a $2 million grant.