Tata Power Q2 Review: Mundra Shutdown Hits Earnings But Motilal Oswal Maintains 'Buy' — Here's Why

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Motilal Oswal Report

Motilal Oswal maintains Buy rating on Tata Power Company Ltd. with a revised target price of Rs 500/share.

Tata Power’s consolidated Ebitda/adjusted profit after tax came in at Rs 33 billion/Rs 9.2 billion, below our estimates by 12%/13%. The weakness in results was largely attributable to Mundra plant shutdown in Q2, which offset the stronger performance at Odisha distribution and the solid ramp-up at TP Solar on a YoY basis.

Tata Power is targeting 1.3 GW of RE capacity commissioning in H2 FY26, with the annual target for FY27 maintained at 2-2.5GW. New distribution opportunities (e.g., UP discom privatization) and the potential tie-up of supplementary PPA for Mundra remain key catalysts for the stock.

Tata Power announced its intent to further strengthen backward integration at TP Solar via 10 GW ingot/wafer capacity and the company remains in discussion with states for subsidies related to the same. 

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