Tata Power’s Mundra Plant Reports ₹800 Crore Loss Due to Shutdown

Tata Power’s 4,000 MW coal-based Mundra plant recorded a loss of around ₹800 crore in the first nine months of the current financial year. As per news reports, the loss followed a shutdown that lasted about 6 months. During this period, the plant did not generate electricity or receive capacity charges. 

Even without operations, fixed costs such as employee expenses, maintenance, and financing commitments continued. 

Plant Idle Since July 

The Mundra facility has remained shut since 3 July. With no generation, the plant was unable to recover fixed costs through capacity payments that are usually part of power supply contracts. 

As a result, expenses accumulated without matching revenue, leading to the reported loss. 

Impact on Quarterly Earnings 

The shutdown was reflected in Tata Power’s December quarter results. Consolidated profit for the quarter was largely unchanged from a year earlier. 

However, profit attributable to shareholders fell by about 25% to ₹772 crore compared with the same period last year. The company linked the decline mainly to the Mundra plant remaining idle. 

Large Capacity, High Fixed Costs 

The Mundra project has a total capacity of 4,000 MW and is among the larger imported coal-based power stations in India. Plants of this size typically have substantial fixed costs, including operations, maintenance, and debt servicing. 

When output stops for an extended period, these expenses continue even though revenue from power generation does not. 

Tata Power Share Price and Valuation  

As of 3:30 PM on February 6, 2026, Tata Power share price closed at ₹365.40, a 0.25% increase from the previous closing price.  

Read More: Tata Power Targets US and Europe for Solar Exports by FY27: CEO Praveer Sinha! 

Conclusion 

The extended shutdown at the Mundra plant has weighed on Tata Power’s earnings for the financial year so far. The extent of the impact will depend on when operations resume and the terms of any agreement that allows the plant to restart. 

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