Tata Power Share Price Target 2026: Brokerage firm Motilal Oswal has reiterated its BUY rating on Tata Group’s flagship company, Tata Power, projecting an upside of nearly 18 per cent from the current market price. The positive outlook is driven by strong growth potential and key strategic developments.
On Monday (March 24), Tata Power’s stock declined by nearly 4 per cent, or Rs 15.8, closing at Rs 386.95. The company is a constituent of the BSE 100 and currently has a market capitalisation of Rs 1,23,643.66 crore. (Tata Power Share Price)
According to the brokerage, the finalisation of the Supplemental Power Purchase Agreement (SPPA) with Gujarat is a major positive development. It addresses long-standing viability challenges at the Mundra plant. If similar agreements are implemented across other states, losses at Mundra could be reduced by up to 75 per cent from the current Rs 17–18 billion annually.
Last week, Gujarat approved the signing of the SPPA with Tata Power, paving the way for the restart of its 4,000 MW imported coal-based Mundra power plant, potentially as early as next week.
Additionally, Tata Power’s Indonesian coal business provides further upside potential. The brokerage estimates that every $10 per ton increase in coal realisation could boost FY27 net profit by approximately 18 per cent.
Beyond Mundra, growth is expected to be driven by strong performance in Odisha and Delhi distribution businesses, aggressive expansion in rooftop solar, and backward integration through a planned 10 GW ingot and wafer manufacturing capacity, according to MOSL.
Other key growth catalysts include opportunities arising from the privatisation of discoms in Uttar Pradesh and the company’s strategic focus on expanding its renewable energy capacity, particularly as demand for third-party EPC projects declines.
Tata Power Share Performance
Tata Power’s stock performance has been mixed across different time frames. In the short term, it declined 0.88 per cent over the past week but gained 3.77 per cent over two weeks and 2.11 per cent over one month.
Year-to-date returns stand at 1.35 per cent, while gains over the past three months are modest at 1.27 per cent. However, the stock declined 2.14 per cent over six months and slipped 0.96 per cent over two years.
On a longer horizon, performance remains strong. The stock has delivered returns of 1.98 per cent over one year, 93.38 per cent over three years, 270.82 per cent over five years, and an impressive 517.64 per cent over ten years, highlighting its robust long-term growth potential.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
