Tata Power Company’s shares rose 2 per cent to the day’s high of Rs 367.40 on the NSE. The stock surged after its net profit jumped 49 per cent Year-over-Year (YoY) in Q2FY27. However, brokerage houses cut price target while maintaining Buy rating.
The global brokerage house Nuvama Institutional Equities maintained its ‘BUY’ rating on the stock, while cutting price target marginally to Rs 416 from Rs 421, based on FY29 valuation.
The company’s Q2 adjusted net profit grew 72 per cent YoY, beating estimates by 6 per cent, led by a 4x jump in coal profits, 63 per cent growth in standalone net profit and strong RE Genco performance.
Weakness in utility-scale solar and group captive EPC was offset by rooftop solar and healthy 24 per cent margins in module/cell manufacturing.
Growth visibility remains strong with 17.4GW installed RE capacity and 5.1GW under construction, supporting the FY29 outlook.
Elara Capital on Tata Power
Following the quarterly earnings, Elara Capital also trimmed the 12-month price target to Rs 485 from Rs 504. The brokerage reiterated its ‘BUY’ rating on the stock as Q2 results broadly in line with house estimates.
The brokerage cut the price target to factor in liability from Rs 6,113 crore arbitration award. Going ahead, the company targets 20GW renewable capacity by FY30 with Rs 1.25lakh crore capex.
Tata Power Q2FY27 results
Tata Power reported a 48.6 percent YoY jump in consolidated net profit to Rs 1,366 crore for Q2 FY27, compared with Rs 919 crore in the same period a year back. Its revenue from operations surged 26.3 percent to Rs 19,636 crore, while total expenses increased 26.6 percent to Rs 18,641 crore.
The earnings growth was supported by a recovery at the company’s 4-GW Mundra thermal power plant, higher contributions from Indonesian coal associates and improved performance across renewable energy businesses.
Tata Power share price performance
The share price of Tata Power has risen 2.5 per cent in the last five trading sessions. The stock has increased 6.3 per cent in the past one month. However, Tata Power’s stock price has declined 8.7 per cent over the previous 12 months.
Sparsh Bansal is the Chief Copy Editor with ET Now Digital. He writes extensively on equity markets, IPO, with a passion for financial markets and a sharp eye to detect patterns, I extensively cover IPOs, stock movements, and investment strategies that shape India’s economic landscape.
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