Shares of Tata Power were down in early trade on Thursday as the firm’s bottom line figure missed analyst estimates for the second quarter, though losses were capped by a decent showing from its solar business.

What Happened: The electricity generation firm posted a net profit of ₹1,093 crore in the quarter ended September, up 7.5% from the ₹1,017.41 crore it earned in the same quarter a year ago. The figure fell short of analyst estimates of ₹1,149 crore.

The Tata Group company’s quarterly revenue came in at ₹15,697 crore, down 0.3% from a topline of ₹15,738.03 crore that it earned in the same period last year. The figure missed analyst estimates of ₹17,522 crore.

However, the company’s margins came in ahead of street expectations. EBITDA increased by 21.2% year-on-year to ₹3,745 crore, surpassing Bloomberg’s estimate of ₹3,117 crore. The EBITDA margin expanded to 23.9%, compared to 19.6% in the same period last year, and exceeded Bloomberg’s projected margin of 18.4%.

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The power major said that its order book in its solar engineering, procurement and construction (EPC) business went up to ₹15,900 crore during the quarter, up from ₹15,500 crore in the preceding quarter. The company has also reached a generation capacity of over 15 gigawatts.

Analyst Reaction: Motilal Oswal maintained its “buy” rating for the stock with a price target of ₹509. The brokerage firm noted that Tata Power delivered a consolidated EBITDA of ₹3,740 crore for the second quarter of FY25, surpassing the brokerage's expectations by 15%.

This strong EBITDA performance was attributed to enhanced solar manufacturing capabilities and improved operational efficiency across various business segments. However, revenue stood at ₹15,690 crore, missing Motilal’s estimates by 18%. Adjusted profit after tax (PAT) came in just 2% below estimates.

Price Action: Tata Power’s share price was up 1.16% at ₹431.95 in early hours of trade on Thursday.

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