Tata Power Q4FY25 Results: Net profit rises 16.5% to Rs 1,043 crore; dividend announced
Tata Power Q4FY25 net profit jumps despite missing Zee Business estimates; revenue up, dividend declared. Mixed analyst views, market reacts positively.
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06:42 PM IST
Tata Power reported a strong fourth-quarter result for the fiscal year 2025, with a notable increase in its consolidated net profit. For the quarter that ended on March 31, 2025, the firm declared a net profit of Rupees 1,433 crore, which was sixteen percent higher than the Rupees 895,95 crore reported during the same time the previous year.
Revenue Growth Supported by Operations
The company's operating revenue also increased by 8% to Rs. 17,696 crore in the fourth quarter of FY25, up from Rs. 15,847 crore in the same quarter the previous year. This rise reflects Tata Power's strong operational performance throughout its different business sectors.
Dividend Cheer for Shareholders
Tata Power's board has recommended a final dividend of rupees two point two five per share for the fiscal year 2025, which is sure to please investors. This dividend is subject to ratification by the company's members at its upcoming 106th Annual General Meeting on Friday, July 4, 2025.
Performance Compared to Zee Business Estimates: Mixed Bag
While Tata Power's net profit and revenue increased significantly year on year, its performance was mixed when compared to Zee Business's forecasts.
Zee Business analysts predicted a revenue of Rs. 18,924 crore, which is higher than the actual revenue of Rs. 17,946 crore.
In terms of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), Zee Business estimated rupees three thousand ninety-six crore, which was significantly higher than the actual EBITDA of rupees two thousand three hundred seven crore, representing a significant 34 per cent year-on-year increase. The predicted EBITDA margin was 16.4 percent, somewhat higher than the actual margin of 14.6 percent.
Surprisingly, the real net profit of Rs. 1,443 crore above the Zee Business estimate of Rs. 982 crore. However, this real result represents a six point one percent fall from the previous year's profit of rupees one thousand forty-six crore, a decline that the Zee Business projection did not anticipate.
Market Reaction and Future Outlook
Despite deviating from some analyst projections, Tata Power's shares on the Bombay Stock Exchange (BSE) ended the day of the earnings announcement two percentage points higher at Rupees 398 P0.05. This suggests that the market is feeling optimistic.
Strong operational performance was cited by the company's management as a major factor in the revenue rise. Even while the net profit increased year over year, the minor decline from the Zee Business expectation calls for a closer examination of the reasons that affected profitability during the quarter. Given the declared dividend and the generally upward revenue trajectory, investors will probably be eager to learn the reasons for the discrepancy in projections and the company's prognosis for the next quarters.
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