Tata Power on Tuesday posted a 0.2% dip in net profit for the first quarter of the fiscal year, failing to grow its bottom line amid heightened demand due to a heatwave during the quarter.

What Happened: The integrated power company’s consolidated net profit attributable to owners of the parent came in at ₹970.91 crore for the quarter ended June 30, down slightly from the ₹972.49 crore it posted in the same quarter last year. This missed analyst expectations of ₹1,005 crore.

The Tata Group company’s quarterly revenue sat at ₹17,293.62 crore in the quarter, up 13.7% from the ₹15,213.29 crore booked a year ago. The figure fell short of street estimates of ₹17,460 crore.

Most analysts are bullish on power companies as power demand stays high. The first quarter of FY25 saw elevated power demand as intense heat waves scorched the country, with base demand likely growing up to 10%.

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UBS recently began coverage on the firm bullishly, noting the company's strong value chain, which includes renewable power generation, solar equipment manufacturing, large-scale solar engineering, procurement and construction projects and pumped storage.

The brokerage said the renewables sector gives the company opportunities to expand on the back of increasing climate concerns and shortages.

Tata Power has also been consistently picking up orders during the quarter, including a rooftop solar panel project for government buildings and a renewable energy deal within the dairy sector.

Price Action: Ahead of its results, Tata Power’s share price ended Friday’s session up 1.08% at ₹439.50. The stock has climbed over 33% so far this year.

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