Tata Power Plans To More Than Double Its Profit By 2030, CEO Praveer Sinha Says

Tata Power Ltd. has set itself ambitious financial goals for the future, so much so that it plans to double its profit by the end of the decade.

Over the same time, the Tata Group firm aims to grow its revenue to Rs 1 lakh crore annually, while doubling its operational profit to Rs 30,000 crore from Rs 14,000-15,000 crore at present, Chief Executive Officer Praveer Sinha told reporters at the company's 4.3 GW solar cell and module manufacturing plant in Tirunelveli, Tamil Nadu, on Dec. 6.

"We are looking at a profit after tax of over Rs 10,000 crore by 2030 from a profit of Rs 4,200 crore last year," Sinha said.

To achieve that kind of growth requires spending.

Capex Plans

Tata Power has increased its capital expenditure outlay to Rs 21,000 crore in FY25 from Rs 12,000 crore in FY24. Going forward, that will rise even further to Rs 25,000 crore annually.

According to the company's latest presentation, between FY25 and FY30, Tata Power will spend almost Rs 1.46 lakh crore as capex across segments including renewables, distribution, transmission, pumped storage and hydro projects as well as traditional generation.

Focus On Renewables

Over the last few years, Tata Power's focus on renewable energy has increased substantially. As per the company, 51% of the company's Rs 30,000 crore Ebitda goal by FY30 will be from the renewables segment. The segment will also account for 50% of the Rs 10,000 crore net profit target.

Furthermore, the company will also spend more than Rs 87,000 crore as renewable energy capex over FY25-30.