Tata Power Restarts Mundra Plant, Shares Expected to Surge
Tata Power shares in focus after Mundra plant restarts following nearly nine-month pause
The Economic TimesImage: The Economic Times
Tata Power has resumed operations at its 4,150 MW Mundra thermal power plant in Kutch, Gujarat, after a nine-month shutdown. This restart, facilitated by new power purchase agreements, is expected to positively impact the company's share performance and aligns with government efforts to boost power generation.
- 01Tata Power's Mundra plant has resumed operations after nearly nine months.
- 02The plant is crucial for electricity supply to multiple Indian states.
- 03Tata Power's share price has gained 3.2% over the past month.
- 04The company's Q3 profit after tax rose 1% year-on-year.
- 05Tata Power's total installed capacity now stands at 16.3 GW.
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Tata Power has restarted operations at its 4,150 MW Mundra thermal power plant located in Kutch, Gujarat, after a shutdown lasting nearly nine months. The plant, operated by its subsidiary Coastal Gujarat Power Ltd, had been offline since July 2, 2025, leading to significant financial losses. The resumption follows the signing of supplementary power purchase agreements, including one with Gujarat Urja Vikas Nigam Ltd, which was approved by the Gujarat cabinet last month. This restart is part of the government's initiative to enhance power generation to meet rising demand, as the Mundra facility is a major contributor, supplying nearly half of its output to Gujarat. In terms of stock performance, Tata Power shares have increased by 3.2% over the past month, although they have remained relatively stable over the longer term, down just 4% in the last six months. For the third quarter of FY26, Tata Power reported a profit after tax (PAT) of ₹1,194 crore (approximately $144 million USD), a 1% increase year-on-year, while revenue for the quarter was ₹14,485 crore (around $1.74 billion USD), down 4% from the previous year. The company has also made strides in renewable energy, executing around 1.3 GW of projects, bringing its total installed capacity to 16.3 GW.
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The restart of the Mundra plant is expected to stabilize Tata Power's financial performance, potentially leading to improved electricity supply and job security for workers involved in power generation.
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