Archive · 29 Jul 2026
Tata Power Sees 41% Upside Potential
Tata Power is doing well financially, with good growth in profits across different parts of its business.
The company is investing a lot in new projects like solar power and storage.
However, there are some temporary issues with collecting payments in Odisha.
Citi, a financial company, thinks Tata Power's stock could go up by 41% because of these positive developments.
The company is also planning to increase its market share in rooftop solar power.
Tata Power's Q1 capex of Rs 5,400 crore marks a healthy start against its Rs 25,000 crore full-year plan.
The company expects 2Q capex to rise to Rs 6,000-6,500 crore, driven by planned capacity commissioning and accelerating transmission and pumped-storage construction.
Odisha distribution performance was affected by temporary collection and billing issues, but the management expects substantial recovery in Q2.
Tata Power's rooftop solar business sustained strong momentum with Q1 revenue at about Rs 1,350 crore, up 64% YoY.
The management expects a further 60% growth in FY27 and believes its FY30E Rs 30,000 crore cumulative revenue aspiration could be achieved by FY29E.
- Who
- Tata Power, Citi
- What
- Tata Power's financial performance and growth prospects
- When
- Q1 FY27
- Where
- India
- Why
- To provide an update on Tata Power's financial performance and growth prospects based on Citi's analysis.
Optimistic Outlook
Operational Challenges
Financial Performance
Optimistic Outlook
Citi highlights broad-based PAT growth and a strong balance sheet, providing headroom for medium-term growth.
Operational Challenges
Odisha distribution performance was affected by temporary collection and billing issues.
Capex and Growth
Optimistic Outlook
Tata Power's capex is on track to meet FY27 guidance, with significant investments in pumped storage, renewables, hydro, transmission, and distribution projects.
Operational Challenges
The company faces challenges in collections at distribution companies and execution of planned capacity commissioning.
- Capex in Q1
- Rs 5,400 crore
- FY26 Capex
- Rs 13,000 crore
- FY27 Capex Plan
- Rs 25,000 crore
- Rooftop Solar Revenue Q1
- Rs 1,350 crore
- Rooftop Solar Growth FY27
- 60%
- Rooftop Solar Market Share Goal
- 25%