Tata Power Expects Renewables Surge After H1 Slowdown, Raises Capex to ₹25,000 Crore

Tata Power anticipates a sharp rebound in renewable energy capacity additions, targeting 1.3 GW in H2 FY26, up from just 205 MW in H1, due to delays caused by heavy rains and site access issues—particularly for wind projects. This brings the full-year addition to 1.5 GW, down from an initial 2.5 GW target. The company aims to ramp up to 2–2.5 GW annually from FY27, as it accelerates toward its 33 GW green energy target by FY30. As of September 2025, it had 5.7 GW operational and a similar capacity under construction. Despite lower project completions, Tata Power’s renewables business delivered stellar financial performance in Q2: Revenue up 89% to ₹3,613 crore EBITDA up 57% to ₹1,575 crore Profit surged 70% to ₹510 crore Driven by strong execution in solar manufacturing and rooftop EPC, including 700 MW of third-party rooftop EPC not reflected in asset books. Overall, the company reported a marginal 0.8% dip in consolidated net profit to ₹919 crore on a 1% revenue decline to ₹15,545 crore, impacted by the delayed Mundra plant operations due to floods. With ₹7,500 crore capex spent in H1, Tata Power is on track to spend ₹25,000 crore in FY26. CEO Praveer Sinha expects performance to strengthen from Q3 onward, contingent on land, transmission, and resolution of the Mundra PPA with Gujarat. Analysts (Nuvama) expect Tata Power’s growth story to fully materialize only post-FY28 as RE investments scale to meet long-term targets.