Tata Power Shares Decline 4% Following Q4 Earnings, Despite Brokerage Recommendations for a 'Buy' on FY27 Growth Catalysts

Tata Power Shares Fall 4% After Reporting March Quarter Earnings

Shares of Tata Power declined by over 4% in Wednesday's trade following the company's release of its March quarter earnings. On the National Stock Exchange (NSE), the stock was trading at Rs 401.45, a decline of Rs 16.95 or 4.05% from the previous day.

Tata Power reported an 8.3% year-on-year increase in consolidated net profit to Rs 1,415.52 crore for the March 2026 quarter, compared to Rs 1,306.09 crore in the same period last year. However, revenue declined by 13% to Rs 14,900.20 crore from Rs 17,095.88 crore.

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Tata Power's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose 10% year-on-year to Rs 4,216 crore. The company's board has recommended a final dividend of Rs 2.50 per share for the fiscal year 2026, subject to shareholder approval at the company's 107th Annual General Meeting scheduled for July 7, 2026.

Brokerages retained their positive stance on the stock. JM Financial noted that Tata Power's consolidated revenue declined 13% year-on-year to Rs 14,900 crore, primarily due to the non-operational Mundra plant. However, revenue excluding Mundra rose 5% year-on-year to Rs 14,600 crore.

JM Financial maintained its BUY rating and set a target price of Rs 485 per share, citing the company's growth prospects in rooftop solar and renewable energy. Motilal Oswal Financial Services also maintained a BUY rating, with a target price of Rs 490 per share, based on the company's expected growth in rooftop solar and renewable energy.