Tata Power, a part of the Tata Group, is one of India’s largest integrated power companies with a strong presence across the energy value chain. The company operates in generation, transmission, distribution, and renewable energy, serving millions of customers across the country. With a growing focus on clean and green power, Tata Power is rapidly expanding in solar, wind, hydro, EV charging, and innovative energy solutions to support India’s energy transition.
Tata Power reported a good performance in Q1 FY26 despite a small drop in electricity demand across India, which fell by about 1.3% due to the early arrival of monsoons. The company expects demand to rise again in August and September when temperatures increase.
The Mundra power plant, which had been running under government orders until June 30, is currently shut for maintenance. Tata Power is holding talks with five states to finalize a new long-term agreement that will run till 2038. Once this agreement is signed, all five units of the Mundra plant will restart. With coal prices staying low, this plant remains very cost-effective.
Financially, Tata Power showed higher profit (PAT) and operating profit (EBITDA) compared to last year. The company spent ₹3,700 crore on new projects this quarter, as part of its yearly investment plan of ₹25,000 crore. Debt has increased to ₹47,578 crore, but the company’s financial health remains stable with strong leverage ratios.
The generation business, which includes thermal, gas, and hydro power, continued to perform steadily and remains a strong profit contributor. In transmission, the company is investing heavily in Mumbai to meet the rising electricity demand. The distribution business in Odisha improved significantly after fixing billing problems, removing fake customers, and installing 25 lakh smart meters.
Tata Power’s renewable energy segment showed impressive growth. The company commissioned 652 megawatts of projects this quarter, almost double the previous year’s level. It plans to build 1,600 megawatts of its own solar projects in the coming quarters. Its solar manufacturing units are running at about 95% capacity, and the rooftop solar business is booming, with installations rising sharply from 1,000 units last year to 20,000 units in June this year.
The company is also expanding its electric vehicle charging business, with strong growth seen in public charging stations, bus charging facilities, and home charging solutions. Looking ahead, Tata Power is developing large clean energy projects, including a 1,000-megawatt pumped hydro project at Bhivpuri to be completed by 2028–29 and a 600-megawatt hydro project in Bhutan that could expand to 5 gigawatts.
During the Q&A session, management confirmed that Odisha discoms are still reducing losses and expect to bring them down further over the next three years. Tata Power also clarified that it will not expand coal-based power but will instead focus on renewable and clean energy projects. The company plans to commission more than 2 gigawatts of renewable capacity this year and increase to 2.5 gigawatts per year from next year. Demand for rooftop solar is huge, and Tata Power expects this segment to grow strongly. However, the company did report a ₹65 crore loss from its Tata Projects joint venture and said that an arbitration award is currently under appeal.
Overall, Tata Power is moving firmly toward renewable energy while maintaining stable finances. The Odisha turnaround, fast-growing rooftop solar demand, and expanding EV charging network are major positives. In the near term, the most important development will be the finalization of the Mundra plant agreement, which could secure steady profits for many years.