Tata Power dips 3% post Q3 miss, renewables shine; brokerages retain 'Buy'

Tata Power reported a consolidated revenue from operations of ₹14,485 crore, down 4 per cent Y-o-Y compared to ₹15,118 crore in the year-ago quarter

Tata Power share price today: Shares of electric utility and electricity generation company Tata Power fell nearly 3 per cent to hit an intraday low of ₹361 on the National Stock Exchange (NSE) after the company reported a disappointing set of numbers for the October to December quarter of fiscal 2026 (Q3FY26). 

 

Around 11:00 AM, Tata Power's share price was trading 2.6 per cent lower at ₹361.95 compared to the previous session's close of ₹371.55 on the NSE. In comparison, the NSE Nifty50 was down 0.59 per cent at 25,624 levels. The market capitalisation of the company stood at ₹1,15,623 crore. The stock has slipped around 13 per cent from the 52-week high of ₹416.8 touched on June 11, 2025.

 

Tata Power Q3 results highlights

In the Q3FY26, Tata Power reported a consolidated revenue from operations of ₹14,485 crore, down 4 per cent year-on-year (Y-o-Y) compared to ₹15,118 crore in the year-ago quarter. The company's earnings before interest, tax, depreciation and amortisation (Ebitda) grew 12 per cent Y-o-Y to ₹3,913 crore from ₹3,481 crore in the Q3FY25.

 

Tata Power's consolidated profit after tax (PAT) came in at 1,194.33 crore compared to ₹1,187.54 crore in the year-ago period. 

 

The company reported a one-time exceptional expense of ₹78 crore due to the new labour codes, which took effect last year.  

 

“Q3FY26 marked strong execution and all-round performance across generation, transmission, distribution, renewables, and manufacturing," said Praveer Sinha, CEO and managing director at Tata Power.

 

Tata Power executed a record 1.3 GW of renewable projects in Q3FY26. Renewable energy business PAT grew 156 per cent to ₹547 crore, and revenue increased 7.8 per cent to ₹3,785 crore. Ebitda of the segment grew 66 per cent to ₹1,637 crore. 

 

Solar cell and module manufacturing posted a strong performance in Q3FY26, with PAT surging 124% year-on-year to ₹251 crore. The rooftop solar segment also delivered robust growth, reporting a Q3FY26 PAT of ₹111 crore, up 85% YoY.

 

During the quarter, solar cell and module manufacturing output reached 962 MW and 990 MW, respectively.

 

Meanwhile, Tata Power Solar’s rooftop business added 1 GWp of capacity and onboarded around 1.7 lakh new consumers during the first nine months of FY26.  Check Q3 Results Today

Brokerages on Tata Power Company

According to analysts at JM Financial, the company's revenue was impacted by the non-operational Mundra plant and by one-off regulatory income of ₹4.6 billion. The company was supplying power from the Mundra Power Plant till June 2025 under Section 11 of the Electricity Act, 2003. Subsequently, from July 3, 2025, it temporarily suspended operations of the plant to undertake pending overhauling activities aimed at resolving existing technical issues.

 

"The fully functional 4.9GW integrated solar cell+module manufacturing (962MW/ 970MW output of cells/ modules in Q3FY26), acceleration in rooftop solar (1.4GW orders in M9FY26) and continued strong performance at the Odisha discoms (Q3 PAT grew 3x Y-o-Y) remain key performance drivers. Delay in signing of PPA for Mundra continues to drag performance," the brokerage said in its note. 

 

JM Financial projects the company to report FY25-28 CAGR of 7 per cent/11 per cent/14 per cent in revenue/Ebitda/PAT. The brokerage retained a 'Buy' on the stock, with a sum-of-the-parts based revised target price of ₹429 (15 per cent upside), implying 12.6x EV/Ebitda and 2.8x P/B on FY28.

 

While the earnings were impacted by muted generation, according to Elara Capital, the key positive continues to be manufacturing and rooftop solar, where cell and module plants operated at industry-leading utilisation, driving strong profitability growth, while the rooftop business scaled rapidly in both capacity and consumer additions.

 

'Tata stands to benefit from power transmission capex, power distribution reforms and green investments. It aims to increase its renewable energy capacity to 20GW by FY30 and has capex plans of ₹1.25 trillion for FY26-30. Tata Power is implementing 2.8GW of PSP projects and has a sizeable opportunity in solar EPC," the brokerage said. Elara Capital has maintained a 'Buy' on the stock with an unchanged SoTP-TP of ₹504.   Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.