Tata Power Share Price Target: Brokerages remain mixed after power stock's Q4 result; Despite projects up to 25% upside

Power Stock to BUY, Tata Power Share Price Target: Tata group flagship company, Tata Power, is in focus today's trading session following the company's Q4 results report recently. The BSE 100 stock reported an 8 per cent rise in consolidated net profit.

Tata Power, a company engaged in the energy-related business, reported a net profit of Rs 1,415.52 crore during the March quarter of FY 2025-26. Additionally, in the January-March quarter, the company's total income fell to Rs 15,455.48 crore from Rs 17,446.95 crore in the fourth quarter of FY25. (Tata Power Q4 Results)

However, on the flip side, Tata Power trimmed its expenses to Rs 14,876.50 crore in Q4FY26 from Rs 16,179.77 crore. The company reduced its fuel cost to Rs 1,336.29 crore from Rs 3,720.35 crore in the fourth quarter of FY25.

Elara Capital maintains BUY

The brokerage has maintained a BUY call for this stock and has set a price target of Rs 504. This reflects an upside of 25.5 per cent from the current price level.

Elara has highlighted that Q4 revenue declines 13 per cent YoY, while EBITDA falls 20 per cent YoY. The rise in PAT was aided by higher regulatory income.

The brokerage further added that it highlighted strong renewable capacity additions, solar manufacturing growth, and long-term benefits from transmission capex and green energy investments.

Goldman Sachs sees 25% downside

Goldman Sachs maintained a ‘SELL’ rating on Tata Power with a target price of Rs 300. This reflects a steep decline of over 25 per cent for the stock.

The brokerage said Q4 PAT missed estimates due to weak renewable generation and lower JV contribution. While rooftop solar and distribution remained strong, execution risks in renewable energy and expensive valuations continue to weigh on the outlook.

Nuvama Downgrades Power Stock

Nuvama downgraded Tata Power to ‘Reduce’ from ‘Hold’ and raised the target price marginally to Rs 390. The stock reflects a marginal downside of 3 per cent.

The brokerage said strong solar and discom performance offset weakness in renewable generation and EPC businesses. While long-term growth prospects remain intact, most positives are already priced in at current valuations.

(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.)