Target: ₹500
CMP: ₹388.55
Tata Power’s consolidated EBITDA/adj PAT came in at ₹3,300 crore/₹920 crore, below our estimates by 12/13 per cent. The weakness in results was largely attributable to Mundra plant shutdown in Q2, which offset the stronger performance at Odisha distribution and the solid ramp-up at TP Solar on a y-o-y basis.
Tata Power is targeting 1.3 GW of RE capacity commissioning in H2-FY26, with the annual target for FY27 maintained at 2-2.5 GW. New distribution opportunities (example UP discom privatisation) and the potential tie-up of supplementary PPA for Mundra remain key catalysts for the stock. TPWR announced its intent to further strengthen backward integration at TP Solar via 10 GW ingot/wafer capacity and the company remains in discussion with states for subsidies related to the same.
We maintain our Buy rating with a revised TP of ₹500/share.
Published on November 12, 2025
