Tata Power
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Tata Power's management is focused on a strategic pivot towards renewable energy, emphasizing significant capital investments in solar manufacturing and energy storage. This aligns with India's commitment to clean energy, which is expected to drive robust demand growth. The company's ambitious target of adding 2.5-2.7 GW of renewable capacity in FY27, coupled with a strong order book in rooftop solar, positions it well for future revenue growth. However, challenges such as regulatory delays and potential margin compression in solar manufacturing could impact earnings. Vista's financial outlook reflects a recovery in revenue growth and stable margins, supported by Tata Power's proactive capital allocation and operational efficiencies. The expected upside of approximately 11% aligns with the company's fair valuation, indicating a balanced risk-reward profile. Industry dynamics, including competitive pricing pressures and the collapse of solar module exports, may temper growth but are offset by the overall expansion in renewable energy demand. Over the next 12-24 months, key opportunities include scaling renewable capacity and enhancing operational efficiencies, while watchpoints include execution risks in large projects and regulatory uncertainties
Why We Like This Stock
- Tata Power's aggressive capital expenditure plan of INR 25,000 crores is set to enhance its renewable energy capacity significantly
- The company's strong focus on rooftop solar and energy storage solutions aligns with India's growing demand for clean energy
- Management's commitment to operational efficiency and digital transformation is expected to improve margins and customer experience
Things To Watch Out For
- Regulatory delays and right-of-way challenges could hinder project execution and impact revenue growth
- Potential margin compression in solar manufacturing due to industry-wide capacity expansion poses risks to profitability
- Fluctuating input costs and operational disruptions from extreme weather events may affect overall performance
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 61,449 | 65,478 | 62,429 | 67,691 | 75,627 |
| Profit Before Tax (Cr.) | 5,341 | 5,974 | 6,730 | 7,155 | 7,883 |
| PBT Margin | 8.7% | 9.1% | 10.8% | 10.6% | 10.4% |
| Net Profit (Cr.) | 4,578 | 5,373 | 5,746 | 6,108 | 5,125 |
| Earnings Per Share | 12.5 | 14.3 | 13.7 | 14.6 | 16.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Jeffries | ▼ Underperform | 335 | 21-Sep-2026 |
| BNP Paribas | ► Neutral | 395 | 03-Sep-2026 |
| Nuvama | ▲ Buy | 421 | 03-Sep-2026 |
| ICICI Securities | ▲ Buy | 485 | 29-Jul-2026 |
| Motilal Oswal | ▲ Buy | 454 | 29-Jul-2026 |
| JPMorgan | ► Neutral | 423 | 28-Jul-2026 |
| JMFinancials | ▲ Buy | 485 | 09-Jun-2026 |
| Morgan Stanley | ► Equalweight | 399 | 03-Jun-2026 |
| CLSA | ► Hold | 415 | 19-May-2026 |
| Goldman Sachs | ▼ Reduce | 300 | 13-May-2026 |
| Kotak Securities | ▼ Sell | 310 | 13-May-2026 |
| Moneycontrol | ▲ Overweight | nan | 13-May-2026 |
| Citigroup | ▲ Buy | 525 | 07-May-2026 |
| Anand Rathi | ▲ Buy | 436 | 23-Apr-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.