Target: ₹500
Current Market Price (CMP): ₹388.55
Tata Power reported a consolidated EBITDA of ₹3,300 crore and an adjusted PAT of ₹920 crore, falling short of forecasts by approximately 12% and 13% respectively. The disappointment in these results can primarily be attributed to the shutdown of the Mundra plant in the second quarter, which countered the stronger performance seen in Odisha distribution and the year-on-year growth at TP Solar.
Looking ahead, Tata Power aims to commission 1.3 GW of renewable energy capacity in the second half of FY26, maintaining its annual target for FY27 at 2–2.5 GW. The company identifies new distribution opportunities, such as the privatisation of UP discoms, and the potential for a supplementary Power Purchase Agreement (PPA) for the Mundra plant as significant catalysts for its stock valuation. Additionally, Tata Power has announced plans to bolster backward integration at TP Solar, targeting a capacity of 10 GW in ingot and wafer production. The company is also engaging with state governments regarding potential subsidies to support this initiative.
The firm continues to hold a Buy rating with an updated target price of ₹500 per share.
Published on November 12, 2025
