Tata Power targets 25% rooftop solar share as FY27 investment accelerates

Tata Power plans ₹25,000 crore of FY27 capex and is targeting about 25% share in rooftop solar, up from 12–13%. Its rooftop solar revenue rose 64% year-on-year to roughly ₹1,350 crore in Q1, supported by channel, supply-chain and after-sales expansion.

— Source publishedWed, 29 Jul, 2026, 09:11 IST·First seen Wed, 29 Jul, 2026, 09:30 IST·Source Business Today · Latest

What happened

Citi retained Buy on Tata Power with a Rs 525 target, citing resilient FY27 Q1 results, Rs 25,000 crore capex and rooftop-solar momentum. Tata Power aims to

Key facts

  • Citi target price: Rs 525
  • Potential upside: 41.41%
  • Tuesday closing price: Rs 371.25
  • Q1 FY27 revenue: Rs 19,100 crore, up 6% YoY
  • Q1 FY27 EBITDA: Rs 3,900 crore, up 8% YoY
  • Q1 FY27 PAT: Rs 1,200 crore, up 11% YoY
  • Q1 capex: Rs 5,400 crore
  • FY27 capex plan: Rs 25,000 crore
  • FY26 capex: Rs 13,000 crore
  • Planned Q2 commissioning: 800-900 MW
  • Odisha units sold growth: 10.4% YoY
  • Rooftop solar Q1 revenue: about Rs 1,350 crore, up 64% YoY
  • Expected rooftop solar FY27 growth: 60%
  • Rooftop solar FY30E cumulative revenue aspiration: Rs 30,000 crore
  • Target rooftop solar market share: about 25%, from 12-13%

Why this matters

Tata Power’s ambition to roughly double rooftop-solar share creates potential partnership and acquisition opportunities in installer aggregation, distributed financing, energy-management software and after-sales service networks.

What to watch

  • Quarterly rooftop-solar revenue growth, order book, installations commissioned and market-share disclosures.
  • Capex allocation between generation, transmission/distribution and distributed rooftop/consumer-energy businesses.
  • Dealer and installer network growth, average installation turnaround time and service complaint metrics.
  • Residential solar subsidy disbursement speed, net-metering rules and DISCOM interconnection timelines.
  • Module and inverter price movements, domestic-content requirements and import-policy changes.
  • Competitor pricing and channel expansion by Waaree, Adani, Renew, regional EPCs and consumer-finance platforms.
  • Rooftop segment margins, working-capital needs and financing/default trends.
  • Accelerate recruitment and certification of local installers and service technicians in tier-2 and tier-3 markets.
  • Bundle rooftop systems with financing, batteries, EV charging and energy-management offerings to raise conversion and lifetime value.
  • Use channel incentives and digital lead-routing to expand dealer density without losing control of installation quality.
  • Secure module, inverter and balance-of-system supply through longer-term procurement agreements and domestic sourcing.
  • Increase post-installation monitoring, warranty responsiveness and referral programs to differentiate beyond upfront system price.