Tata Power Reports Q2 FY27 Results and Outlines Legal Position on Kleros Dispute

Tata Power Company expects no immediate balance sheet impact from its ongoing legal dispute with Kleros Capital Partners in Singapore, according to Managing Director and Chief Executive Officer Praveer Sinha. Speaking to the media following the release of the company's second-quarter results, Sinha stated that the company has a strong appeal pending before the Singapore Court of Appeal.

The legal battle stems from agreements signed between Tata Power and Kleros in 2013 and 2014 regarding the development of the Krutogorovo coal deposit in Russia's Kamchatka region. Arbitration proceedings were initiated by Kleros before the Singapore International Arbitration Centre (SIAC) in November 2020. The SIAC subsequently issued liability, quantum, and final awards directing Tata Power to pay damages and costs.

Tata Power challenged the awards before the Singapore International Commercial Court (SICC), which dismissed the company's setting-aside applications and passed enforcement judgments. The company subsequently filed notices of appeal. The Singapore Court of Appeal is scheduled to hear the appeal on January 19, 2027. Based on legal advice and management assessment approved by the board, Tata Power concluded that no financial provision is required for the period.

Kleros has sought to enforce the court orders by attempting to take over Tata Power's shareholdings in two wholly owned Singapore subsidiaries: Tata Power International Pte Ltd and Shira Investments Pte Ltd. However, Sinha noted that these shares are already pledged with banks. He added that any enforcement action must follow a lengthy legal process involving notices, court proceedings, and the appointment of valuers, which would normally take three to six months. Separately, the company confirmed it has filed a police complaint in Mumbai to seek further investigation into the matter.

Alongside the legal update, Tata Power reported its financial performance for the quarter and half year ended September 30, 2026. The company posted a 49 per cent year-on-year increase in consolidated net profit at ₹1,366 crore for Q2 FY27. Revenue from operations rose 26 per cent to ₹19,636 crore during the same period.

Segment-wise, the thermal and hydro segment recorded revenue of ₹5,883 crore, more than double the figures from the corresponding period last year. The renewables business reported revenue growth of 4 per cent to ₹3,745 crore, while the transmission and distribution segment posted a 9 per cent increase, reaching ₹11,937 crore.

"Corporate litigation involving cross-border jurisdictions requires careful navigation, particularly when asset encumbrances and pledged shares are involved. Tata Power's approach of contesting the arbitration awards through legal channels while ring-fencing immediate balance sheet provisions demonstrates structured risk management. For businesses expanding internationally, maintaining clear contractual documentation and robust legal oversight remains critical when commercial disputes escalate into prolonged legal battles." — Dr. Shishir Gupta, Founder & CEO, StartupLanes