Tata Power Q3 net profit drops 4%, scouting sites for nuclear SMRs

Mundra thermal plant shutdown drags earnings as Tata Power explores small modular nuclear reactors with state governments

Tata Power on Tuesday reported a 4 per cent drop in net profit at Rs 1,194 crore for the third quarter ended December 2025 due to the ongoing shutdown of its flagship Mundra thermal power plant in Gujarat. The company’s revenue also declined 11 per cent to Rs 14,269 crore during the quarter.

 

The company said in a statement that its performance during the third quarter and the nine-month period reflects the strength of its diversified and integrated portfolio, spanning renewables, transmission and distribution, new energy solutions, and conventional generation.

 

Speaking to the media in a post-results interaction, managing director and chief executive officer Praveer Sinha said the company witnessed good performance in solar manufacturing and engineering, procurement and construction (EPC) segments, apart from transmission and distribution and hydropower businesses.

 

 

“The only place where we did not do well was that the Mundra plant did not operate. We are now in the final stages of finalising the power purchase agreement with Gujarat first, and then the same will be taken up with the other four states,” Sinha said. “We have agreed on most of the things, and I expect we will be able to close this in the next few weeks. We expect quarter four will be a very robust performance,” he added.

 

Sinha also said the company has crossed 10 gigawatt (GW) of cumulative renewable EPC execution, delivered record solar cell and module output, and scaled rooftop solar installations beyond 4 GW.

 

During the quarter, subsidiary Tata Power Renewable Energy (TPREL) commissioned SJVN’s 1 GW and NHPC’s 300 MW solar projects using modules from its Tirunelveli facility, and added 357 MW of in-house renewable energy capacity. With this, its total utility-scale capacity has reached 6.1 GW.

 

Sinha said Tata Power is currently discussing the possibility of setting up small modular nuclear power plants with three states and is in the process of acquiring land for the projects. “Hopefully, we should be in a position to zero down on land and water availability next week. We are looking at smaller-sized plants and there are certain technology partners, including some foreign players, with whom we are in detailed discussions to understand their technology and the scope of services they can offer,” he said.

 

The government has amended nuclear power legislation, but many details are still awaited, including the type of approvals required, he said. “It will take another six to nine months before there is clarity on approvals required, licensing conditions and fuel sourcing. We need to constantly engage with the government, the Department of Atomic Energy and NPCIL to understand some of these aspects, and once we get better clarity, we will start taking action on implementation of these projects,” Sinha said.

 

Commenting on the India-US trade deal, Sinha said it has opened up many opportunities to work with US companies on renewable and nuclear energy technology. “It is a very positive step for the industry as it opens up opportunities in terms of supply of equipment, and also to get long-term access to technology, which is critical for making us self-sustainable in the clean energy transition,” he said.