Tata Power Delivers Robust Q1 FY26 Results: Should Investors Stay Bullish?
Last Update: Monday, August 4, 2025 – 10:00 AM IST
Tata Power, India’s leading integrated power utility, reported a resilient and diverse Q1 FY26 performance, strengthening its position as a renewables and energy transition leader. While the company posted solid growth across profit, revenue, and operational metrics, its shares saw a modest short-term dip on the market, prompting questions about investor sentiment and the stock’s future trajectory.
Key Q1 FY26 Financial Metrics (YoY)
Blue bars show Q1 FY26 growth versus pale bars for FY25. Green denotes outperformance in renewables.
Q1 FY26 Financial Highlights
| Metric | Q1 FY25 | Q1 FY26 | YoY Change |
|---|---|---|---|
| Revenue (₹ Cr) | 17,294 | 18,035 | +4% |
| EBITDA (₹ Cr) | 3,366 | 3,930 | +17% |
| Net Profit (₹ Cr) | 971 | 1,060 | +9% |
| Renewables PAT (₹ Cr) | 272 | 531 | +95% |
| EBITDA Margin | 20.7% | 22.9% | +220 bps |
| Rooftop Solar PAT (₹ Cr) | 25 | 90 | +260% |
Tata Power has delivered steady and broad-based growth for the April–June 2025 quarter. The net profit rose to ₹1,060 crore, reflecting a healthy 9% year-on-year increase. Revenue climbed 4% to ₹18,035 crore, while EBITDA jumped 17% to ₹3,930 crore. Impressively, the renewables segment – a core part of Tata Power’s future strategy – contributed 95% higher profit after tax at ₹531 crore.
Yet, on the day of the results, shares saw a modest drop of around 2–3%, closing at ₹383.5. This was likely the result of near-term profit booking after a sustained rally and some investor caution on rich valuations.
Business Segments: Renewable Power Takes the Lead
- Renewables: Commissioned 94 MW of new capacity, bringing total operational renewables to 5.6 GW. PAT from renewables soared 95% to ₹531 crore. Rooftop solar revenues doubled to ₹823 crore (YoY) with over 45,500 new installations, bolstering Tata Power’s leadership in decentralized green energy.
- Manufacturing: The TP Solar division contributed ₹100 crore in PAT, manufacturing 949 MW of solar modules and 904 MW of solar cells. External sales fetched ₹1,613 crore, with strong 19% margins.
- Transmission & Distribution: Odisha Discoms’ PAT leaped to ₹105 crore (+156%), with breakthroughs in efficiency and customer service, inspiring plans to expand T&D in Maharashtra.
- Large-Scale Solar EPC: Tata Power delivered projects for utility and corporate clients, enhancing its EPC order book and stature in India’s solar boom.
- Capex & Strategic Progress: ₹3,700 crore was already invested in Q1 of a planned ₹25,000 crore capex for FY26, fueling both organic and acquisition-led growth. The company is also developing hydro storage (Bhivpuri, Dagachhu) and cross-border sales with Bhutan.
Analyst & Brokerage Opinions: Near-Term Queries, Long-Term Bullishness
- ICICI Securities: Maintains Buy with ₹465 target, confident in Tata Power’s integrated, diversified model and the renewables growth engine.
- Motilal Oswal: Retains Buy (target ₹487), highlighting sustained earnings momentum from renewables and T&D, and a strong project pipeline.
- Nuvama: Stays positive on long-term growth (target ₹362), but warns of valuations, and possible near-term margin pressure in solar manufacturing as captive supplies rise.
- Avendus Capital: Adjusts target to ₹420 (Add rating), acknowledging robust execution but thinks share price factors in much of near-term upside (22× FY27 P/E).
- Antique Stock Broking: Slightly trims target to ₹467 while keeping Buy based on project visibility and healthy EBITDA mix.
- Market Sentiment: Despite a short-term correction post-earnings, most analysts see Tata Power as a core long-term bet on India’s energy transition, with leadership in renewables, rooftop solar, and T&D reforms.
Post Comment