TP Solar, a subsidiary of Tata Power, produced 2 GW of solar modules and 1.8 GW of cells in the first half of FY27. This production ramp-up at its Tirunelveli facility strengthens the company's domestic supply chain, though investors are keeping an eye on debt levels and the stock's recent downward trend as the company scales operations.
TP Solar, the manufacturing unit of Tata Power Renewable Energy, has reached a significant production milestone at its large-scale solar facility in Tirunelveli, Tamil Nadu. During the first half of the 2027 fiscal year, the plant successfully produced 2 gigawatts (GW) of solar modules and 1.8 GW of solar cells. The second quarter alone accounted for 1 GW of module output and 0.9 GW of cell production, highlighting the company’s push to increase its domestic manufacturing footprint.
The Tirunelveli plant is a key asset for Tata Power, representing an investment of approximately ₹4,300 crore. The facility has a total capacity of 4.3 GW and utilizes advanced manufacturing technologies such as TOPCon and Mono PERC production lines. These technologies are important because they allow the company to meet strict government rules regarding domestic content, ensuring its products qualify for important projects that require locally manufactured equipment.
While the increase in production capacity is a operational positive, investors are also tracking the financial implications of this heavy capital spending. As of early October 2026, Tata Power’s debt-to-equity ratio stood at approximately 1.93. Because the company is investing heavily in this manufacturing expansion, the market is monitoring how effectively it manages these debt levels while continuing to grow. Large-scale manufacturing projects carry execution risks, including the challenge of maintaining steady demand and managing raw material costs in a competitive renewable energy market.
The Tata Power stock has been trading under pressure recently, reflecting broader market volatility and caution among investors regarding power sector companies. With the company scheduled to hold a board meeting on November 11, 2026, to discuss its financial results, shareholders will likely look for updates on how this new capacity is translating into revenue and whether profit margins remain stable despite the high cost of expansion. Another interesting aspect of the Tirunelveli plant is its workforce composition, where nearly 80% of the employees are women, marking a notable shift in industrial labor practices for the region.
Moving forward, the main monitorables for investors will be the company’s ability to maintain high utilization rates at the new plant and whether the domestic demand for solar modules remains robust enough to justify the current scale of investment. The upcoming earnings report will be the next major trigger for understanding how these manufacturing efforts are impacting the company's overall financial health.