Shares of Tata Power crashed more than 6% during intraday trade on Tuesday after the company reported weaker-than-expected March quarter earnings and brokerages gave mixed views on the stock’s future outlook.
The stock fell to an intraday low of Rs 390.95 against its previous close of Rs 418.40, marking a decline of around 6.6%. However, the stock later recovered some losses and was trading 2.88% lower at Rs 406.35 around 10:55 am.
The sharp fall came after a report by The Economic Times highlighted concerns around the company’s quarterly performance despite continued growth in its renewable energy and solar manufacturing businesses.
Tata Power reported a consolidated net profit of Rs 996 crore in Q4 FY26, down 4% from Rs 1,043 crore in the same period last year. Revenue from operations also declined 13% year-on-year to Rs 14,900 crore from Rs 17,096 crore.
The company’s profit after tax came in below market estimates due to weaker renewable energy generation and lower contribution from joint ventures. Despite this, EBITDA rose 10% to Rs 4,216 crore during the quarter.
A key reason behind the pressure on the stock appears to be the cautious view taken by some brokerages after the results.
Goldman Sachs maintained a “Sell” rating on Tata Power with a target price of Rs 300, implying a downside of around 28% from current levels. The brokerage reportedly said that Tata Power’s Q4 profit after tax was 13% below estimates and flagged concerns around renewable energy execution, transmission constraints and curtailments in renewable power generation.
Goldman Sachs also reportedly believes that the stock’s current valuation already reflects much of the future optimism around the company’s renewable energy business.
However, not all brokerages turned negative on the stock.
Motilal Oswal Financial Services retained a “Buy” rating on Tata Power with a target price of Rs 490. The brokerage highlighted strong growth in rooftop solar installations and the company’s expanding renewable energy business. According to the report, rooftop solar installations nearly doubled year-on-year to around 1.7 GW in FY26, while management expects the rooftop solar business to grow 50–60% in FY27.
Similarly, JM Financial also maintained a “Buy” call with a target price of Rs 485. The brokerage reportedly sees long-term growth potential in Tata Power’s cell and module manufacturing business, rooftop solar demand and Odisha discom operations.
Even though the stock reacted negatively, several parts of Tata Power’s renewable business continued to show strong growth. According to the ET report, profit from the renewables business rose 59% in FY26, while the solar manufacturing business more than doubled its profit to Rs 857 crore. The rooftop solar business also reported a 150% jump in annual profit to Rs 499 crore.
The company attributed this growth to higher manufacturing output and strong execution in the solar segment.
For investors, Tata Power currently presents a mixed picture. On one side, weaker-than-expected quarterly earnings and valuation concerns have led to pressure on the stock. On the other, the company continues to remain one of India’s biggest renewable energy plays with strong long-term growth visibility in solar and clean energy businesses.
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