TATAPOWER

’s Green Push Gains Momentum, But Mundra Woes and Rising Debt Weigh on Sentiment

’s Q2FY26 earnings were overshadowed by the shutdown of its Mundra thermal plant, despite strong performance in renewable energy (RE) and transmission & distribution (T&D). The company faces regulatory hurdles and rising debt, but its green energy pipeline and discom efficiency offer long-term promise. - Financial Performance: - Consolidated EBITDA fell 7% YoY to ₹3,500 crore - Revenue remained flat at ₹15,500 crore - Mundra plant shutdown impacted earnings despite gains in other segments - Segment Highlights: - RE EBITDA surged 2.5x YoY to ₹466 crore, driven by cell and module manufacturing - T&D EBITDA rose 17% YoY, with Odisha discoms showing 67% growth to ₹687 crore - Total installed capacity remains ~55% thermal, but RE share (solar, hybrid) is set to rise significantly - Mundra Plant Challenges: - Operational and regulatory issues continue to affect Mundra’s viability - Tata Power is negotiating a supplementary PPA with the Gujarat government to resolve pricing and supply constraints - Debt & Capital Outlook: - Net debt rose to ₹54,000 crore in Q2FY26 from ₹47,600 crore in Q1 - Total loans projected to exceed ₹1.2 trillion by FY28, reflecting aggressive capex plans - Growth Pipeline: - RE capacity additions (solar, hybrid) expected to drive future growth - Resolution of Mundra issues remains a key trigger for earnings and stock re-rating Tata Power’s green energy momentum and discom efficiency are encouraging, but Mundra’s uncertainty and rising leverage temper near-term optimism. A breakthrough in regulatory negotiations could unlock significant upside.