Tata Power share price fell over 3% in early trade on Monday after the company reported its Q1 results. Tata Power shares declined as much as 3.28% to ₹376.50 apiece on the BSE.
The Tata Group company reported a consolidated ₹1,060 crore”>net profit of ₹1,060 crore for the first quarter of the financial year 2025-2026, recording a rise of 9% from the ₹971 crore in the corresponding quarter of the previous fiscal year.
Tata Power’s revenue from operations in Q1FY26 grew 4% to ₹18,035 crore from ₹17,294 crore, year-on-year (YoY). The company’s EBITDA during the June quarter increased 17% YoY to ₹3,930 crore.
Tata Power Company said its profit after tax from the renewables business jumped 95% YoY to ₹531 crore. It commissioned 94 MW RE capacity in Q1 FY26, taking the total operational renewable capacity to 5.6 GW.
Analysts have maintained a bullish view on the company after robust performance across business segments and a strong orderbook.
“Tata Power is clearly in a transition phase, shifting focus to clean and green energy. Around 44% of their current capacity is now renewable, and they’re aiming for 70% by 2030. That kind of shift requires a lot of investment, and that’s showing up in the short-term earnings. But they’re building long-term value. They’re also growing in areas like EV charging and rooftop solar, which could become strong drivers going forward,” said Gaurav Goel, Founder & Director at Fynocrat Technologies.
Should you buy Tata Power shares after Q1 results
Elara Capital said that Tata Power stands to benefit from power transmission capex, power distribution reforms and green investments.
“Tata Power aims to increase its RE capacity to 15GW by FY27 and has capex plans of ₹842 billion for FY24-27. It is implementing 2.8GW of PSP projects and has a sizeable opportunity in solar EPC. The company’s 4.3GW manufacturing plant is running at 90% utilization,” Elara Capital said.
It maintained a ‘Buy’ rating on Tata Power shares with an unchanged target price of ₹504 per share, implying an upside potential of nearly 30% from Friday’s closing price.
JM Financial believes Tata Power’s leadership in expanding rooftop solar, the operationalization of integrated solar cell-module manufacturing, the commencement of work on the 1,000 MW Bhivpuri pumped hydro storage plant, continued strong performance in Odisha, and the likely signing of a PPA for Mundra will drive the company’s future performance.
It estimates the company to report FY25-28 CAGR of 8%, 13% and 13% in Revenue, EBITDA and PAT. The brokerage house maintained a ‘Buy’ call on the stock with target price of ₹436 apiece, implying 13.3x EV/EBITDA and 3.1x P/B on FY27.
Tata Power Share Price Performance
Tata Power share price has declined by 4% over the past month, though it has registered a 5% gain in the last six months. On a year-to-date (YTD) basis, the Tata Group stock is down 3%, and it has corrected 17% over the past year.
Despite the recent underperformance, Tata Power share price has surged 62% over a two-year period and have delivered multibagger returns of 668% over the past five years.
At 9:50 AM, Tata Power share price was trading 1.67% lower at ₹382.80 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
