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Informist, Wednesday, Feb. 4, 2026

 

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--Tata Power: May see power demand rebound on expected harsh summer
--CONTEXT: Tata Power mgmt's comments in post-earnings call with analysts
--Tata Power: Talks with Gujarat govt on Mundra plant done barring one issue
--Tata Power: Have added 2.3 GW of renewable power in FY26 so far
--Tata Power: Will definitely add 2.5 GW of renewable power a year from FY27
--Tata Power: To add 500 MW or more renewable power in March quarter
--Tata Power: Earned INR 8 bln from Odisha distribution business in Q3

 

By Sunil Raghu and Gunjan Rajput

 

MUMBAI – Tata Power Co. Ltd. has concluded its discussions with the Gujarat government to find a resolution and reach an agreement on the supplementary power purchase agreement for its 4,000-megawatt Mundra power project, barring one issue, the company's management told analysts during the post-December quarter earnings conference call Wednesday. 

"We hope that in the next three weeks, we will be able to close that, and on a similar basis, we will probably start discussing with the other states so that we are in a position to start the operation of the plant, maybe by the end of this month," Praveer Sinha, the company's chief executive officer and managing director, said. Informist had on Dec. 24 exclusively reported that Tata Power and Gujarat government had reached an agreement over all the issues related to power purchase agreement, except for the time-horizon of the PPA.

 

Sinha said they are expecting a rebound in power demand due to a harsh summer expected this year, and they want to be ready for the requirements of the states. Other than Gujarat, Tata Power supplies electricity to Rajasthan, Maharashtra, Haryana, and Punjab from the Mundra plant, at almost similar terms to its power purchase agreement with Gujarat. The company's management said once they finalise the supplementary power purchase agreement with Gujarat, they would circulate it to other states for their approval, and start firing up the plant.

 

Tata Power has five supercritical units of 800 MW each at Mundra. The plant accounts for nearly one-fourth of Tata Power's total electricity generation capacity of 16 gigawatts. These plants accounted for INR 112.9 billion of the company's consolidated turnover of INR 645.02 billion in 2024-25 (Apr-Mar). The Gujarat government and Tata Power have been in talks for nearly four years to resolve several issues and pave the way for signing a power purchase agreement and restarting the Mundra power plant. The restart of the plant is contingent on the signing of a new power purchase agreement.

 

Tata Power reported lower-than-expected earnings for the December quarter. The electricity generation and electric utility company's consolidated net profit for the December quarter fell over 25% on year to INR 7.72 billion, below the Street's estimate of INR 9.7 billion. Its consolidated revenue from operations for the quarter also fell over 9% on year to INR 139.48 billion, well below analysts' expectations of INR 158 billion.

 

The company is optimistic that while Mundra has been its biggest challenge in the quarter gone by, rest of its business, including renewables and transmission and distribution, has shown improved performance and offset most of the losses.

 

The management highlighted the performance of its Odisha distribution assets to drive home the point, stating that the company had earned nearly INR 8 billion from this asset in the December quarter. The profit for the quarter under review from Odisha was at INR 2.26 billion, up from INR 860 million a year ago.

 

On the company's target of installing 2.5 gigawatts of renewable energy in 2025-26 (Apr-Mar), the management said that so far, they have installed 2.3 GW. This includes installation for third parties and 900 megawatts of in-house capacity. "We have another 400-500 MW of project which we are pursuing, which we expect to complete in this quarter. And then we have projects which will come up in 2027," the management said, adding that the company plans to install 2.5 GW of renewable power in FY27.

 

Tata Power announced its December quarter earnings after market hours. Wednesday, the company's shares ended up nearly 2% at INR 371.55 on the National Stock Exchange.  End

 

Edited by Tanima Banerjee

 

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