Tata Power names Sanjay Banga CEO, reports 49% rise in Q2 profit

Tata Power has named Sanjay Banga as its next chief executive officer and managing director, while reporting a nearly 49% increase in consolidated net profit for the September quarter. The leadership transition comes as the company reports stronger power generation, expanding renewable energy operations and plans further capacity additions.

Banga will take over as CEO and managing director for a five-year term beginning May 1, 2027. He has been appointed additional director and CEO designate with effect from Wednesday, November 11, according to Reuters.

Currently the CEO and managing director of Tata Power Renewable Energy, Banga brings 37 years of experience in the power sector. His appointment places a leader from the company's renewable energy business at the helm of the wider Tata Group power utility.

Profit climbs to Rs 1,366 crore

Tata Power's consolidated net profit rose to Rs 1,366 crore in the quarter ended September 30, compared with Rs 919 crore in the corresponding period last year. The increase of approximately 48.6% was supported by a recovery in generation at its Mundra plant and higher contributions from solar manufacturing and rooftop installations.

According to Reuters, the company's key financial figures for the quarter were:

• Consolidated net profit: Rs 1,366 crore, up from Rs 919 crore a year earlier.

• Revenue from operations: Rs 19,636 crore, an increase of 26.3%.

• Total expenses: Rs 18,641 crore, up 26.6% year-on-year.

The growth in revenue was accompanied by a comparable increase in expenses, reflecting the higher operating scale during the quarter. The recovery in power generation and contributions from renewable energy activities supported the improvement in profitability.

Mundra plant recovery supports earnings

A significant contributor to the quarterly performance was the recovery of Tata Power's 4-gigawatt Mundra coal-fired power plant in Gujarat. The facility had remained shut during the corresponding quarter last year, making its return to operations an important factor in the year-on-year earnings improvement.

Solar manufacturing and rooftop installations also contributed to the stronger performance. The developments reflect the contribution of both conventional power generation and renewable energy operations to the company's quarterly results.

Tata Power's renewable energy business, its second-largest by revenue, recorded 7.9% growth in profit. The company attributed the improvement to capacity expansion, better margins and continued momentum in its rooftop solar business.

Banga's appointment comes amid renewable expansion

Banga's elevation comes as Tata Power looks to expand its renewable energy portfolio alongside its established generation and distribution businesses.

The company expects to add 2.5 gigawatts of renewable energy capacity in fiscal 2027, while expanding its solar generation and manufacturing operations.

Outgoing CEO Praveer Sinha highlighted the contribution of the company's regulated and contracted operations, alongside its expanding renewable and customer-facing businesses.

"While our regulated and contracted businesses provide resilient cash flows, renewables, rooftop solar, storage, and customer-facing solutions are enhancing growth momentum," Sinha said in a statement.

Banga's current leadership role at Tata Power Renewable Energy gives him experience within a business that is central to the company's planned capacity expansion. He will formally assume the wider CEO and managing director responsibilities from May 2027.

Rs 11,871 crore planned for Maharashtra hydro project

Alongside its renewable energy expansion, Tata Power has announced a significant investment in hydroelectric generation capacity.

The company plans to invest Rs 11,871 crore to expand capacity at its Shirwata hydro project in Maharashtra to 1,800 megawatts.

The proposed investment adds another component to the company's capacity development plans, which include solar generation, manufacturing and renewable energy additions.

As Banga prepares to take over in May 2027, Tata Power's priorities include delivering its planned renewable capacity additions and executing the proposed hydro expansion. Its latest results also underline the continuing contribution of conventional generation to earnings as the company expands its clean energy portfolio.

The leadership transition and investment plans will shape the company's next phase, with performance across generation, renewables and customer-facing businesses remaining important to its financial trajectory.