Tata Power names Sanjay Banga CEO from May 2027 as Q2 profit jumps 49% to Rs 1,366 crore

Tata Power has named Sanjay Banga as its next chief executive and managing director, announcing the Tata Power Sanjay Banga appointment alongside its second quarter results on 11 November, Reuters reported. Banga, who currently leads Tata Power Renewable Energy, becomes an additional director and CEO designate from 11 November, and takes over as CEO and MD for five years from 1 May 2027, subject to shareholder approval. The company is part of the Tata Group.

What happened

The board approved the appointments, with the CEO designate role following a recommendation from the Nomination and Remuneration Committee, Saur Energy reported. The CEO and MD term runs from 1 May 2027 to 30 April 2032, the report said.

The results arrived the same day. Tata Power’s consolidated net profit for the quarter ended 30 September rose to 13.66 billion rupees ($145.71 million) from 9.19 billion rupees a year earlier, a gain of nearly 49%, Reuters said. Revenue from operations rose 26.3% to 196.36 billion rupees. Reuters attributed the improvement to the 4 gigawatt Mundra coal plant in Gujarat, which recovered after being shut in the year-ago quarter, and to solar manufacturing and rooftop installations.

Key numbers

• Rs 1,366 crore (13.66 billion rupees): quarterly net profit, up nearly 49% year on year, per Reuters.
• Rs 1,652 crore: total consolidated profit including non-controlling interests, up from Rs 1,245 crore, the Free Press Journal reported.
• Rs 19,636 crore (196.36 billion rupees): revenue from operations, up 26.3%, according to Reuters.
• 2.5 GW: the renewable capacity Tata Power expects to add in fiscal 2027, Reuters said.
• Rs 11,871 crore (118.71 billion rupees): planned spend to expand the Shirwata hydro project in Maharashtra to 1,800 megawatts, per Reuters.

Who is Sanjay Banga

Banga has 37 years in the power sector, Reuters said. He began as an engineer trainee at NTPC in 1989, worked at Reliance Energy (formerly BSES) from 1996 to 2003 and joined Tata Power Delhi Distribution Limited in 2003, according to Saur Energy. He later ran Tata Power’s transmission and distribution businesses before moving to renewables, where he is President, Renewables and was CEO and MD of Tata Power Renewable Energy. He holds an MBA from the University of Delhi’s Faculty of Management Studies.

His promotion comes as India’s power and energy and climate sector draws large capital commitments. Founders in Frame reported on 11 November that Adani Group plans over $120 billion of capex in five years, as told to Fortune India.

What the company said

Current CEO Praveer Sinha said in a statement that “resilient cash flows” from regulated and contracted businesses are supporting the company, while renewables and related areas are boosting growth, Reuters reported. Profit at the renewable business, Tata Power’s second largest by revenue, grew 7.9%, the report said.

One legal item sits in the filing. The auditor flagged an arbitration award of $490.32 million plus costs and interest, which Tata Power is challenging in Singapore and has not provided for, the Free Press Journal reported.

What happens next

Shareholders must approve the CEO and MD appointment before Banga’s term begins on 1 May 2027. The next markers are the 2.5 GW renewable addition target for fiscal 2027 and the outcome of the Singapore challenge to the arbitration award, both of which will shape the first year of the Tata Power Sanjay Banga era.