Power regulator CERC issued a suo motu order on November 4 directing all renewable energy developers (solar, wind, etc.) to pass on the benefit of the reduced tax rate to the discoms and, ultimately, to end consumers through a corresponding reduction in the electricity tariff.
Ministry of New and Renewable Energy (MNRE) will cut the pace of renewable energy auctions in FY26-27 amid surplus supply and connectivity hurdles. However, India is still on track to achieve its 500 GW non-fossil fuel-based power generation target by 2030, MNRE Secretary Santosh Kumar Sarangi told Moneycontrol.
Tata Power has 5.4 GW of projects in pipeline and we will be able to complete all this in the next two years. So, any new bid that we win will come only in the third year. This is in fact the current scenario for the entire renewable energy sector in India, which is why the government is reassessing its scale of tendering such projects, Sinha said.
ICICI Securities is bullish on Tata Power recommended buy rating on the stock with a target price of Rs 465 in its research report dated November 12, 2025.
Motilal Oswal is bullish on Tata Power recommended buy rating on the stock with a target price of Rs 500 in its research report dated November 11, 2025.
Tata Power reported a marginal decline in its consolidated net profit for the second quarter of FY26, coming in at Rs 919.4 crore, down 0.7 percent year-on-year from Rs 926.5 crore. CEO Praveer Sinha attributed this to heavy monsoon across India which dampened electricity demand.
The proposed restructuring scheme for state-owned discoms can be seen as a preparatory platform for the Indian government’s larger goal to implement the draft Electricity Amendment Bill, 2025 which seeks to introduce competition in the power distribution sector by ending the monopoly of state-owned discoms.
The move is likely to translate into a reduction of around Rs 12 paisa per unit in their cost of electricity supply as coal-based capacity accounts for nearly 70% of total generation at an all-India level, according to ICRA Ltd.
The GST council will also look at reducing the tax on solar panels and windmill components from 12% to 5%
The decision is expected to boost power companies such as Tata Power, Adani Green Energy, Greenko Group, JSW Energy and Torrent Power which have announced plans on pumped storage projects.
Margins in coal and regulated businesses slipped on lower incentives while renewable margins improved on better PLF and cost control.
The wind turbines will not just be 'Made in India', but 'Made in Andhra Pradesh' too. With Tata Power's project, wind energy farms will make a comeback in Andhra Pradesh after a hiatus of 6 years.
The company has multiple levers to power growth
Tata Power’s move can be an indicator of an overall decline in the pace of installation of public EV charging units in India. Last month, Karnataka government had to scrap its ambitious plan of to set up 2,500 EV charging stations across the state citing poor response from private companies.
Praveer Sinha, CEO of Tata Power, also said the company plans to double its rooftop solar business from the current 25,000 installations per month to 50,000 by the end of FY26.
ICICI Securities is bullish on Tata Power recommended buy rating on the stock with a target price of Rs 465 in its research report dated August 04, 2025.
Motilal Oswal is bullish on Tata Power recommended buy rating on the stock with a target price of Rs 487 in its research report dated August 02, 2025.
Tata Power posted a net profit of Rs 1,060 crore for the June quarter, up 9 percent YoY from the Rs 971 crore in the same period last year.
Tata Power Q1 Results LIVE: EBITDA rose 17% YoY to Rs 3,930 crore.
Justifying its reversal of the mandate, the environment ministry said current exposure levels provide no credible evidence to suggest that sulphur dioxide (SO₂), under prevailing ambient conditions, is a major public health concern.
The ruling deals a setback to the company, sparking investor concerns over potential financial impact