250% Dividend Announced: Tata group company announces dividend despite Q4 profit fall; check record date

Tata Company Q4FY26 Results: Tata Power Company Limited reported a 4.5 per cent year-on-year decline in consolidated net profit to Rs 996 crore for the fourth quarter of FY26, compared with Rs 1,043 crore in the same period last year, as weaker performance in its hydro and thermal power segment weighed on earnings.

Hydro and thermal segment profit drops 39 per cent

The hydro and thermal power segment saw a sharp 39 per cent fall in profit during the quarter, impacted by lower generation and shutdowns at key plants in Gujarat.

Revenue declines 13 per cent

Revenue for the quarter slipped 13 per cent year-on-year to Rs 14,900 crore, reflecting lower output from conventional power generation assets and segmental pressure across operations.

Gujarat coal plant resumes operations

A key development during the quarter was the restart of the 4-gigawatt imported coal-based power plant in Gujarat, which had remained shut since August last year after the withdrawal of emergency compensation for power generated using expensive imported coal. The plant resumed operations in April, restoring part of the company’s generation capacity.

Dividend declared despite earnings pressure

The board of Tata Power Company Limited declared a dividend of Rs 2.50 per share for FY26, even as quarterly profitability came under pressure.

The stock had closed at Rs 418.40, down Rs 14.65 or 3.38 per cent on the BSE before the results were announced on Tuesday.

Fuel mix shifts toward coal amid gas constraints

The company noted that domestic coal remains a more viable option amid disruptions in liquefied natural gas supplies and weaker gas-based generation, leading to expectations of higher dependence on coal-fired power in the near term.

Meanwhile, forecasts of an El Niño weather pattern indicate hotter and drier conditions across parts of Asia during the upcoming summer months, which could influence power demand trends.