Tata Power shares gained 1.4% to ₹365 in early trading on Thursday after the company reported strong earnings for the second quarter of the financial year 2026-27 (Q2 FY27).
The power utility posted a 48.6% year-on-year increase in consolidated net profit to ₹1,366 crore, compared with ₹919 crore in the corresponding quarter last year.
Revenue from operations rose 26.3% to ₹19,636 crore, while total expenses increased 26.6% to ₹18,641 crore.
The earnings improvement was supported by better performance at the company's Mundra thermal power plant, higher contributions from Indonesian coal associates and growth across renewable energy businesses.
Tata Power shares have declined 4.5% so far in 2026, compared with a 3.3% fall in the Nifty 50.
The company's market capitalisation stood at approximately ₹1.16 lakh crore.
Tata Power maintained its capital expenditure guidance of ₹25,000 crore for FY27 as it continues expanding its power generation and renewable energy operations.
The company also reiterated its target of commissioning 2.5 gigawatts (GW) of renewable energy capacity during the financial year.
Its earnings benefited from a recovery at the 4 GW Mundra thermal power facility, alongside stronger contributions from other businesses.
Separately, Tata Power announced the appointment of Sanjay Banga as Chief Executive Officer and Managing Director for a five-year term beginning May 1, 2027.
The company's growth plans and execution of renewable energy projects remain important factors in brokerage assessments.
