The energy arm of the Tata conglomerate said consolidated net profit surged to 9.45 billion rupees ($115.4 million) in the third quarter ended Dec. 31, from 4.26 billion rupees a year earlier.

India's power industry, in general, was boosted by increased heating needs in December and a fall in prices of key raw materials, while analysts have also flagged significant growth in demand from industrial states.

Tata Power's revenue from operations rose 29.5% to 141.29 billion rupees, including a one-off gain of 4.39 billion rupees.

That gain was the compensation India's power regulator gave Tata Power - and other power companies that rely on imported coal - for making them supply electricity at full capacity at a government-notified tariff last year.

The Mumbai-based company's cost of power purchased grew 21.7% to 44.21 billion rupees in the quarter.

Its revenue from transmission and distribution, which contributed the most to revenue, rose 15.9% to 82.56 billion rupees, while power generation revenue grew 71.7%, and renewable revenue rose 5.1%.

Tata Power's earnings before interest, taxes, depreciation and amortization (EBITDA) rose due to capacity addition in renewables and better performance across all businesses.

The company's shares have fallen 1.16% so far this year, following a 6% decrease in 2022. ($1 = 81.8660 Indian rupees)

(Reporting by Meenakshi Maidas in Bengaluru; Editing by Savio D'Souza)