

For Tata Power, Mundra remains the Achilles’s heel, overshadowing other segments
Subscribe to enjoy similar stories. Tata Power Co. Ltd shares are down around 3% after its consolidated Ebitda for the December quarter (Q3FY26), adjusted for one-off regulatory income, fell by 9% year-on-year, to ₹3,100 crore.
Revenue, too, declined by 9% to ₹13,900 crore. The continued shutdown of the Mundra power plant since July has hurt Tata Power’s performance. Mundra, along with the associated coal and shipping businesses, reported a loss of ₹145 crore at the Ebitda level (including other income) in Q3FY26, against a profit of ₹809 crore in the year ago period.
The plant is lying idle as its power purchase agreement (PPA) does not allow fuel cost pass-through, making it commercially unviable at current fuel prices. Note that the plant was operational last year under the central government’s directive which allowed fuel pass through. Tata Power has been in discussion with the consuming states since July to enter into a supplementary PPA allowing fuel pass-through.
The agreement remains elusive till date, even as the company hopes to reach a deal soon. The good thing is that Tata Power’s other two businesses continue to do well. The renewables business recorded a 66% increase in Ebitda (including other income), to over ₹1,600 crore, driven by the scaling up of the integrated solar cell & module manufacturing plant, which reached full capacity.
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