Tata Power
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Tata Power's management is optimistic about the company's transition to an integrated clean-energy utility, emphasizing growth in renewable segments such as solar manufacturing and rooftop solar. Despite facing short-term challenges like grid curtailments and regulatory hurdles, the long-term outlook is bolstered by a robust execution pipeline and a diversified asset base. Vista's financial outlook reflects a recovery in revenue growth, with stable margins expected as the company expands its renewable capacity and transmission assets. The anticipated commissioning of 2.5-2.7GW in FY27 aligns with Vista's target price of INR 431.67 for the next 12 months, indicating a potential upside of approximately 14%. Industry dynamics, particularly the strong growth in solar energy and supportive government policies, further enhance Tata Power's position. However, execution risks and regulatory uncertainties remain critical watchpoints. Over the next 12-24 months, key opportunities include the expansion of the rooftop solar segment and advancements in energy storage solutions, while headwinds may arise from fluctuating input costs and potential operational disruptions due to extreme weather events
Why We Like This Stock
- Strategic focus on expanding renewable energy capacity, particularly in solar and rooftop segments
- Management's optimistic outlook supported by a clear capex roadmap and improving operational efficiencies
- Strong industry growth driven by solar energy demand and favorable government policies
Things To Watch Out For
- Short-term headwinds from grid curtailments and regulatory approvals impacting project timelines
- Execution risks associated with large-scale projects and potential operational disruptions from extreme weather
- Weak cash conversion relative to the asset base may constrain financial flexibility
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 61,449 | 65,478 | 62,429 | 67,975 | 78,729 |
| Profit Before Tax (Cr.) | 5,341 | 5,974 | 6,730 | 7,108 | 8,152 |
| PBT Margin | 8.7% | 9.1% | 1078.0% | 10.5% | 10.4% |
| Net Profit (Cr.) | 4,578 | 5,373 | 5,746 | 6,068 | 5,300 |
| Earnings Per Share | 12.5 | 14.3 | 13.7 | 14.5 | 16.6 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Anand Rathi | ▲ Buy | 436 | 23-Apr-2026 |
| CLSA | ► Hold | 415 | 19-May-2026 |
| Citigroup | ▲ Buy | 525 | 07-May-2026 |
| Goldman Sachs | ▼ Reduce | 300 | 13-May-2026 |
| ICICI Securities | ▲ Buy | 485 | 29-Jul-2026 |
| JMFinancials | ▲ Buy | 485 | 09-Jun-2026 |
| JPMorgan | ► Neutral | 423 | 28-Jul-2026 |
| Jeffries | ▼ Underperform | 355 | 13-Aug-2026 |
| Kotak Securities | ▼ Sell | 310 | 13-May-2026 |
| Moneycontrol | ▲ Overweight | nan | 13-May-2026 |
| Morgan Stanley | ► Equalweight | 399 | 03-Jun-2026 |
| Motilal Oswal | ▲ Buy | 454 | 29-Jul-2026 |
Company Overview
Show Company Profile
The Tata Power Company Limited engages in the generation, transmission, distribution, and trading of electricity in India and internationally. It operates through four segments: Thermal & Hydro, Transmission & Distribution, Renewables, and Others. The company generates power from hydroelectric and thermal sources, such as coal, gas, and oil; and provides related ancillary services. It also engages in the operation of transmission and distribution networks; and sale of power to retail customers through distribution networks. In addition, the company offers project management contracts and infrastructure management, and property development services, as well as rents oil tanks. Further, it is involved in the generation of power from renewable energy sources, such as wind and solar; rooftop solar projects; electric vehicle charging stations; manufactures solar cells and modules; engineering, procurement, and construction; home automation solutions; and maintenance services. Additionally, the company trades in power and coal; generates and distributes power; hydro pump storage, coal mining, trading, shipping, and related infra business; and provides smart meter, consultancy, networking solution, shipping and coal handling, logistics, and equipment business and related services, as well as infrastructure for electric vehicles. As of March 31, 2026, the company had an installed generation capacity of 16,716 megawatt. The Tata Power Company Limited was founded in 1915 and is based in Mumbai, India.