RattanIndia Power returns to H1 profit as finance costs fall

RattanIndia Power returned to an unaudited profit before tax of Rs 81.26 crore in H1 FY27, compared with a Rs 47.62 crore loss a year earlier. The turnaround came despite total income declining by Rs 10.11 crore, as total expenses fell by Rs 139.02 crore, led by a Rs 91.45 crore reduction in finance costs.

Why did RPL return to H1 profit?

RPL returned to H1 profit because the reduction in expenses exceeded the modest fall in income. Profit before tax, and profit for the period because no tax expense was reported, was Rs 81.26 crore for the half year ended 30 September 2026, against a loss of Rs 47.62 crore in the half year ended 30 September 2025. This was a Rs 128.88 crore improvement.

Total income was Rs 1,672.56 crore in H1 FY27, down from Rs 1,682.67 crore in H1 FY26. Revenue from operations nevertheless increased by Rs 25.75 crore to Rs 1,501.40 crore. The decline in total income resulted from other income falling to Rs 171.16 crore from Rs 207.02 crore, a decrease of Rs 35.86 crore that outweighed the rise in operating revenue.

The change is evident when income is compared with costs. Total expenses decreased to Rs 1,591.30 crore from Rs 1,730.32 crore, while total income declined by Rs 10.11 crore. As a result, RPL recorded an H1 FY27 surplus before tax of Rs 81.26 crore, compared with the prior-period deficit of Rs 47.62 crore.

How much did RPL's finance costs decline?

RPL's finance costs fell 35% year on year to Rs 168.80 crore in H1 FY27 from Rs 260.25 crore in H1 FY26. The Rs 91.45 crore decline was the largest reduction among the main expense lines and accounted for about two-thirds of the Rs 139.02 crore fall in total expenses.

Fuel, power and water costs also declined by Rs 37.01 crore to Rs 1,155.58 crore in H1 FY27 from Rs 1,192.59 crore. Other expenses decreased by Rs 14.64 crore to Rs 103.87 crore. These reductions offset increases of Rs 2.67 crore in employee benefits expense and Rs 1.41 crore in depreciation and amortisation expense.

In the quarter ended 30 September 2026, RPL's finance costs were Rs 82.87 crore, compared with Rs 112.08 crore in the corresponding quarter of 2025 and Rs 85.93 crore in the quarter ended 30 June 2026. The presentation therefore indicates that the H1 earnings reversal was driven principally by lower expenses rather than higher total income.

Revenue from operations increased by Rs 25.75 crore in H1 FY27, while total expenses declined by Rs 139.02 crore. Finance costs fell by Rs 91.45 crore, whereas other income declined by Rs 35.86 crore, limiting the effect of the increase in operating revenue on total income.

What changed in RPL's quarterly results?

RPL recorded a profit before tax of Rs 36.90 crore in the quarter ended 30 September 2026, compared with a Rs 33.02 crore loss in the quarter ended 30 September 2025. Quarterly revenue from operations rose by Rs 49.13 crore to Rs 702.85 crore, while finance costs fell by Rs 29.21 crore to Rs 82.87 crore.

The September quarter was lower than the immediately preceding quarter of FY27. Profit before tax declined from Rs 44.36 crore in the quarter ended 30 June 2026 to Rs 36.90 crore in the September quarter. Total income fell by Rs 78.60 crore sequentially to Rs 796.98 crore, including a Rs 95.70 crore reduction in revenue from operations.

Expenses also fell sequentially, but by a smaller Rs 71.14 crore, to Rs 760.08 crore. Fuel, power and water costs dropped by Rs 66.56 crore from the June 2026 quarter, while other expenses declined by Rs 1.87 crore. Depreciation and amortisation increased by Rs 0.66 crore to Rs 63.22 crore.

What do RPL's earnings and equity figures show?

RPL reported basic and diluted earnings per share of Rs 0.15 for H1 FY27, compared with a loss per share of Rs 0.09 in H1 FY26. The presentation states that quarterly and half-year earnings per share are not annualised. The quarterly earnings per share were Rs 0.07 in Q2 FY27 and Rs 0.08 in Q1 FY27.

No current or deferred tax expense was recorded in either reported H1 period. Consequently, RPL's Rs 81.26 crore profit before tax was equal to its stated profit for the period. Total comprehensive income was Rs 81.06 crore in H1 FY27 after an other comprehensive loss of Rs 20 lakh, compared with a total comprehensive loss of Rs 47.21 crore in H1 FY26.

Paid-up equity share capital was unchanged at Rs 5,370.11 crore across the September 2026 quarter, June 2026 quarter and September 2025 quarter. Other equity was a deficit of Rs 527.85 crore at 31 March 2026. For the year ended 31 March 2026, RPL reported profit before tax and profit for the period of Rs 46.59 crore.

RPL said it continues to pursue recovery of regulatory receivables through legal and regulatory forums. In its Change in Law matter, MSEDCL paid Rs 115 crore after the Supreme Court admitted MSEDCL's civil appeal and stayed the APTEL judgment subject to payment of 25% of the principal amount.

Conclusion

RPL's H1 FY27 result reversed the prior-year loss, with profit before tax improving by Rs 128.88 crore to Rs 81.26 crore. Operating revenue rose, but total income was slightly lower because other income declined; the main movement was the Rs 139.02 crore decrease in expenses, particularly the Rs 91.45 crore reduction in finance costs.

The next development to watch is the recovery of regulatory receivables. RPL's remand petition before MERC for payment of Change in Law claims remains sub judice, while MSEDCL's Supreme Court appeal against the APTEL order has been admitted and the underlying judgment remains stayed subject to the specified payment condition.