Tata Power ordered to pay $490 million to Kleros in partial arbitration award

Tata Power Company Ltd on Wednesday (July 2) said it has been ordered to pay $490.32 million in damages to Kleros Capital Partners Limited, along with interest and legal costs, following a partial award by an arbitral tribunal under the Singapore International Arbitration Centre (SIAC) rules.Tata Power received the tribunal’s award on July 1, 2025, after business hours. The company said it is reviewing the contents of the award and is evaluating all available options, including a possible legal challenge.

Also Read: Tata Power’s TP Solar crosses 4 GW solar module output at Tamil Nadu plant
The arbitration was initiated by Kleros in November 2020, and oral hearings concluded in February 2024. The payment is to be made along with interests and legal costs.The tribunal, in a 2:1 majority decision, also awarded Kleros simple interest of 5.33% on the damages from November 30, 2020, until the date of payment. In addition, Tata Power has been directed to pay $8.29 million in legal costs, with interest at the same rate from July 1, 2025.
The case pertains to Tata Power’s Russian mining partner Kleros Capital Partners Ltd., where Kleros claimed that Tata Power breached confidentiality and non-circumvention clauses in their Non-Disclosure Agreement, which was signed for a proposed coal mining project in Russia.Fourth Quarter Results

Tata Power Company reported a 24% year-on-year rise in consolidated net profit to ₹1,306 crore, compared to ₹1,045.6 crore in the same quarter last year. The company’s operational performance also strengthened, with revenue rising 7.9% YoY to ₹17,096 crore.

The EBITDA for the quarter saw a significant jump of 39.2% YoY to ₹3,245.4 crore, indicating improved operational efficiency. Operating margins expanded to 19% from 14.7% in the year-ago period.

Also Read: Tata Power sees strong renewable growth continuing in FY26

Tata Power’s board has recommended a final dividend of ₹2.25 per equity share for FY25. The dividend is subject to shareholder approval at the company’s 106th Annual General Meeting (AGM), scheduled for July 4, 2025.

Shares of Tata Power Company Ltd ended at ₹406.90, up by ₹0.35, or 0.086%, on the NSE.