Tata Power Share Price Falls 2% After Singapore Tribunal Ruling: $498 Million Penalty to Kleros Capital

Market Movement: Tata Power Share Price Dips

The Tata Power share price declined by 2% on July 3, reacting to a recent international tribunal ruling. The shares were trading at ₹398.45 at 10:13 AM, registering a dip amid investor concerns.

• 52-week high: ₹494.85
• 52-week low: ₹326.35
• Market Capitalisation: ₹1.27 lakh Crore

The decline in the Tata Power share price this fall follows the announcement of a significant legal directive from the Singapore tribunal.

Main Update: Tribunal Orders Tata Power to Pay $498 Million

A tribunal under the Singapore International Arbitration Centre (SIAC) has directed Tata Power to pay $498 million in damages to Kleros Capital Partners.

The order, delivered via a 2:1 majority partial award, also includes:

• Interest: 5.33% per annum from November 30, 2020, until full payment
• Legal Costs: Additional $8.29 million with the same annual interest rate from July 1, 2025

The arbitration arises from a dispute over a proposed coal mining project in Russia, where Kleros alleged that Tata Power violated confidentiality and non-circumvention clauses of a Non-Disclosure Agreement (NDA).

In response, Tata Power stated it is reviewing the tribunal's award and may explore legal avenues to challenge the decision.

Company Overview: Tata Power's Business Context

Tata Power, one of India's top integrated power firms, was in talks with Kleros Capital regarding a planned coal mining venture in Russia. The legal dispute stems from these early-stage project discussions.

Despite the recent ruling, Tata Power continues to demonstrate operational strength, as evident in its financial performance for the fourth quarter of FY25.

Financial Snapshot of Tata Power

Revenue

• Q4FY25 Revenue: ₹17,096 Crore
• Year-on-Year Growth: 7.9%

EBITDA

• Growth: 39.2% YoY
• EBITDA Margins: Improved from 14.7% to 19%

Net Profit

• Q4FY25 Profit: ₹1,306 Crore
• YoY Growth: 24%

These figures underline a solid financial quarter for the company, even as legal challenges loom in the background.

Dividend Announcement

Tata Power's board has recommended a final dividend of ₹2.25 per equity share for the financial year 2025.

• AGM Date: July 4, 2025
• Status: Subject to shareholder approval at the 106th Annual General Meeting

This dividend proposal reflects the company's continued commitment to delivering shareholder value, despite external legal challenges.

Summary: What This Means for Tata Power Share Price?

The Tata Power share price experienced immediate pressure following the tribunal's directive, raising concerns over short-term financial implications.

However, the company's strong Q4 FY25 financials, consistent revenue growth, rising profitability, and continued dividend payouts signal resilience in its core operations.

While the arbitration verdict has created a temporary drag, Tata Power's management is actively reviewing legal options, and the market will closely monitor upcoming developments.