“Tata Power Q3: Green energy up, profits stuck…”

Q3 FY26 Results Snapshot - Revenue (Ops): ₹14,269–14,485 crore (↓4–9% YoY) - Net Profit: ₹1,194 crore (flat YoY vs ₹1,187 crore last year) - EBITDA: ₹3,913 crore (↑12% YoY) - Expenses: ₹13,465 crore (↓6% YoY) - Exceptional Item: ₹78 crore charge due to new labour codes - Nine-Month FY26: Revenue ₹48,716 crore, Net Profit ₹3,702 crore 🔎 Investor Watchouts - Mundra UMPP Losses: Section 11 benefit absent this quarter, leading to higher losses at the ultra-mega power project. - Revenue Decline: Despite profit stability, topline contraction raises concerns about demand softness. - Regulatory Costs: Labour code compliance added one-time expenses. - Arbitration Risk: Ongoing Singapore arbitration appeal adds uncertainty. - Demand Trends: Power demand remained flat in Q3 FY26 vs 7% YoY growth last year. 📈 Impact on Stock - Near-Term: Muted results and Mundra losses may cap upside; stock trades around ₹370–375. - Medium-Term: Renewables and transmission segments continue strong growth, providing structural support. - Sentiment: Investors remain cautious until Mundra losses stabilize and demand growth resumes. 🚀 Strategic Outlook - Renewables Expansion: Tata Power Solar and green energy portfolio remain growth drivers. - Transmission & Distribution: Stable contributor to earnings, ensuring predictable cash flows. - Diversification: Focus on clean energy, EV charging, and distributed generation to offset thermal volatility. - Long-Term Play: Positioned as a key beneficiary of India’s renewable energy push, but legacy Mundra issues remain a drag.