After a slowdown in project completions in the first half of FY26, Tata Power expects its renewable energy capacity addition to pick up from the current quarter and scale up significantly from the next financial year.
The company added just 205 MW renewable energy capacity in H1 as it could not complete projects as sites were inundated after rains and access was curtailed, especially wind sites which require movement of heavy wind turbines, Praveer Sinha, MD and CEO at Tata Power, said in a call with analysts.
The company expects to add 1.3 GW in the second half of FY26 — a more than sixfold rise over H1 — taking the total capacity addition to 1.5 GW, Sinha said . The company had set a target of adding 2.5 GW a year earlier. The company had a utility scale renewable capacity of 5.7 GW as of September 2025 and similar capacity is under construction. It is targeting a green energy capacity of 33 GW by FY30.
The additions in H2 will depend on availability of land and transmission lines, he said. “Whatever we miss out in this financial year, we will try to complete within next financial year,” Sinha said, adding that by the end of FY27, they will be able achieve whatever targets they have set.
The company’s renewable targets have fallen also due to a focus on completing third-party EPC (engineering, procurement, and construction) contracts, rooftop solar EPC and so on, analysts said. “The company has added 700 MW of rooftop solar EPC which is not shown in the books,” said a source in the company.
The company said profit of its renewables business went up 70% to Rs 511 crore in the second quarter of FY26, Ebitda (earnings before interest, taxes, depreciation, and amortisation) went up 57% to Rs 1,575 crore, and revenue was up 89% to Rs 3,613 crore, reflecting strength of strategic investment in solar manufacturing and rooftop business delivering stellar gains.
Renewable additions remained muted at 205MW in the first half, prompting a cut in FY26 target to 1.5 GW from 2.5 GW earlier, with 2-2.5 GW yearly planned FY27 onwards, Nuvama Institutional Equities said in a note. “We find Tata Power’s growth story materialising only after FY28 as RE capex picks up to reach FY30 target PAT of Rs 10,000 crore,” Nuvama said .
Tata Power last week posted a marginal fall of 0.8% in profit in the second quarter of FY26 to Rs 919 crore compared with Rs 927 crore in the year-ago period. The company posted a 1% fall in revenues to Rs 15,545 crore in Q2 compared with Rs 15,698 crore in the same quarter of FY25.
“We expect our performance in future quarters to be more robust and improve substantially once we are able to sort out Mundra issue and also with more capacity additions in this quarter and subsequent quarter,” Sinha said in the call. He said they could not run the Mundra power plant due to long rains and that they are in talks with the Gujarat government to finalise the terms of power purchase agreement.
The company incurred capex of Rs 7,500 crore in H1 and is in track to incur a total capex of Rs 25,000 crore in FY26, he said.