PM Surya Ghar hits 50 lakh mark: Tata Power, Waaree Energies among key solar stocks in focus

The 50.06 lakh rooftop solar installations nationwide represents a significant market opportunity for the companies that install, finance and manufacture these panels. As a result  has also turned attention to the companies actually building these rooftop panels and Tata Power is a key  renewable sector stock in focus. 

Waaree Energies and Premier Energies are among the other key stocks in focus. 

Tata Power’s solar integration across cell making and distribution 

Tata Power sits right in the middle of this chain, from making solar cells to fixing panels on customers roofs to arranging the financing.

Tata Power has businesses spanning rooftop solar installation, module and cell manufacturing, power distribution and financing partnerships.

The company has already installed 1.7 gigawatt peak (GWp) of rooftop solar capacity during FY26, helped more than 2.2 lakh households during the year and crossed three lakh cumulative residential customers.

However, rooftop solar remains only one part of Tata Power’s overall business, meaning the benefit is spread across several business segments rather than reflected in a single vertical.

Tata Power: What top brokerages see next 

A look at how top brokerages are reading the market opportunity for Tata Power. 

Axis Capital: Strong investment pipeline keeps long-term outlook intact

Axis Capital has retained its ‘Add’ rating on Tata Power with a target price of Rs 450. This implies an upside potential of around 19% from the current market price.

This renewable company has made a strong start to FY27 in terms of capital expenditure. It highlighted that “Tata Power started off FY27 well on the capex front. Q1 capex of Rs 53.75 bn is the highest ever quarterly print, and keeps them in contention to achieve their FY27 capex guidance of Rs 25,000 crore.”

The brokerage also pointed out that “EBITDA grew 5%, contrary to our expectation of a dip led by Mundra.” It believes the continued investment in renewable energy and network expansion remains a positive for the company over the long term.

Ambit: Rooftop solar momentum and Mundra resolution improve outlook

Ambit has upgraded Tata Power to a ‘Buyer’ rating with a 12-month target price of Rs 420. This indicates an upside potential of around 13%.

The company’s integrated renewable platform is beginning to deliver results across multiple businesses.

It said, “Rooftop solar and module operations continue to outperform, while renewable energy project execution has accelerated despite commissioning delays.”

The brokerage also believes the supplementary power purchase agreements for the Mundra plant have significantly reduced earnings volatility.

Highlighting the company’s growth outlook, Ambit noted, “We now forecast 14% EBITDA CAGR and 13% EPS CAGR through FY30, driven by Mundra stabilisation and accelerating renewable businesses.”

It added that after the recent correction, valuations have become more attractive.

Elara Capital: Renewable expansion remains the biggest growth driver

Elara Capital continues to maintain a ‘Buy’ rating on Tata Power with a target price of Rs 504. This translates to an upside potential of nearly 34%.

Tata Power is well placed to benefit from multiple long-term themes, including renewable energy expansion, transmission investments and power distribution reforms.

The report said, “Tata Power will benefit from power transmission capex, power distribution reforms, and green investment.”

Elara expects the company to expand its renewable energy capacity to 20 gigawatts by FY30 and has factored sustained renewable expansion into its earnings estimates.

The brokerage added that it has raised its earnings estimates after incorporating stronger renewable growth and stable performance in the transmission and distribution business.

Motilal Oswal: Diverse business model supports valuation

Motilal Oswal has reiterated its ‘Buy’ rating on Tata Power with a target price of Rs 454, suggesting an upside potential of around 22%.

The valuation is supported by contributions from multiple businesses rather than a single segment.

It said, “The regulated business is valued using a 2.5x multiple on regulated equity, while the renewables segment is valued at 12x FY28E EBITDA.”

The brokerage further noted that “Cash and investments add Rs 69/share.”

Nuvama: Better quarterly performance, but growth may remain back-ended

Nuvama has upgraded Tata Power to ‘Hold’ from ‘Reduce’ and raised its target price to Rs 400.

Tata Power’s June-quarter earnings were supported by higher coal profits and improved performance from its solar module manufacturing business.

The brokerage said, “Tata Power’s Q1 adjusted consolidated PAT grew ~11% YoY driven by coal profits surging 2.6x YoY.”

However, it also believes that much of the company’s earnings growth will come in the later years as large renewable energy and pumped storage projects become operational.

It added that “At CMP, we find growth triggers to be back ended.”

Kotak Institutional Equities: Positive developments already reflected in valuations

Kotak Institutional Equities remains cautious on the stock and has retained its ‘Sell’ rating with a fair value of Rs 300.

According to the brokerage report, future earnings growth will largely depend on timely commissioning of renewable energy projects and execution of the company’s expansion plans.

It noted that “Renewable capacity addition in Q1FY27 remained weak at 226 MW, against the targeted 2.5 GW for FY2027.”

The brokerage house also highlighted improvements in capital expenditure and the resolution of the Mundra issue, it believes “the current market price already captures most of the positives,” leading it to maintain its cautious stance.

What about the rest of the solar stock?

Tata Power is not the only company riding this wave. Waaree Energies, a major solar module and cell maker, has built large-scale manufacturing capacity and sells subsidy-eligible residential systems too. Waaree Energies reported a strong start to FY27, with revenue rising 79.2% year-on-year to Rs 7,932 crore in the April-June quarter. Operating EBITDA increased 44.4% to Rs 1,440 crore. However, the EBITDA margin narrowed to 18.2% from 22.5% a year ago, mainly due to higher costs. Profit after tax (PAT) grew 15.4% year-on-year to Rs 892 crore.

As of July 28, 2026, its order book stood at around Rs 61,500 crore, up from Rs 52,700 crore at the end of FY26. During the quarter, Waaree secured Rs 16,000 crore worth of new orders, while executing projects worth Rs 7,300 crore.

Premier Energies, another domestic manufacturer, has also flagged the PM Surya Ghar scheme as a key growth driver for its business. Premier Energies has not yet announced its Q1 FY27 results. The company’s board is scheduled to consider and approve the quarterly results on August 6, 2026.

As of March 31, 2026, Premier Energies had an order book worth Rs 14,010 crore, covering 9.38 gigawatts (GW) of capacity. Around 58% of these orders were for solar cells, while the remaining 42% were for solar modules, with all orders coming from the domestic market.

During the first quarter of FY27, the company secured new orders worth Rs 3,011 crore, covering 1.85 GW of capacity. These orders are expected to be executed over FY27 and FY28.

What should investors watch?

For Tata Power, the key factors that will be closely monitored include renewable capacity additions, rooftop solar installations, battery storage expansion and the resolution of the Mundra power plant. 

For manufacturers such as Waaree Energies and Premier Energies, demand growth, pricing and capacity utilisation will remain important factors to watch.

Disclaimer: The equity coverage, price targets, and brokerage ratings cited in this article are for informational and educational purposes only and do not constitute an offer, solicitation, or recommendation to buy, sell, or hold any security. Stock market investments are subject to market risks, and analyst projections or past performance do not guarantee future returns. Readers should evaluate their individual risk profiles and consult a SEBI-registered financial advisor or qualified investment professional before making any financial decisions. This disclaimer has been generated using AI to support user well-being and responsible content consumption.