Citi keeps Tata Power at Buy, sees 41% upside as rooftop solar accelerates

Citi reiterated its Buy rating and Rs 525 target for Tata Power, versus a Rs 371.25 close. The utility reported 64% year-on-year growth in Q1 rooftop-solar revenue and is targeting about 60% growth in FY27, alongside a push to raise market share to roughly 25%.

— Source publishedWed, 29 Jul, 2026, 09:54 IST·First seen Wed, 29 Jul, 2026, 10:30 IST·Source Business Today · Latest

What happened

Citi retained its Buy rating on Tata Power with a Rs 525 target, citing stable Q1 results, rising capex and rooftop-solar momentum. Tata Power targets roughly

Key facts

  • Citi target price: Rs 525
  • Tuesday closing price: Rs 371.25
  • Implied upside: 41.41%
  • Q1 revenue: Rs 19,100 crore, up 6%
  • Q1 EBITDA: Rs 3,900 crore, up 8%
  • Q1 PAT: Rs 1,200 crore, up 11%
  • Q1 capex: Rs 5,400 crore
  • FY27 capex target: Rs 25,000 crore
  • Q2 expected capex: Rs 6,000-6,500 crore
  • New capacity commissioning: 800-900 MW
  • Rooftop solar Q1 revenue: Rs 1,350 crore, up 64% YoY
  • FY27 rooftop-solar growth target: about 60%
  • Rooftop solar market-share target: about 25%, from 12-13%

Why this matters

Tata Power’s push toward a 25% rooftop-solar market share makes it a stronger potential partner for multi-site retail solar deployments, financing and energy-service deals.

What to watch

  • Quarterly rooftop-solar order intake, installations, revenue growth and segment margin versus the 60% FY27 growth target.
  • Progress toward roughly 25% rooftop-solar market share and changes in customer-acquisition costs.
  • Residential solar subsidy policy, disbursement speed and state-level net-metering rules.
  • Battery-storage attachment rates, financing delinquency and installation turnaround times.
  • Competitor pricing, particularly bundled offers from other utilities, EPC firms and consumer-finance platforms.
  • Expand bundled rooftop-solar offers combining installation, financing, battery storage and post-installation service plans.
  • Use the existing utility customer base and digital billing channels to target high-consumption households with tailored savings estimates.
  • Increase installer, distributor and housing-society partnerships to support market-share ambitions without proportionately increasing fixed costs.
  • Build storage and EV-charging attach rates, especially in urban homes and residential communities with unreliable peak-hour supply economics.