Tata Power Falls 3% After Q1 Result: Time To Buy The Power Stock Or Stay Cautious? Target Price Inside

Tata Power shares remained under pressure on Monday after the company announced 9% year-on-year increase in its net consolidated profit to Rs 1,060 crore for the June quarter of the financial year 2025-26.

Tata Power shares dipped around 3% to touch an intraday low mark of Rs 376.50 per share on the BSE on Monday. Tata Power shares were trading 0.81% lower at Rs 386.15 per share on BSE at 12:50 pm with a market capitalisation of Rs 1,23,388.04 crore.

The company had reported a net profit of Rs 1,059.86 crore in the June quarter for FY26, and a net consolidated revenue of Rs 18,035.07 crore. While the net profit surged on a year-on-year basis, the revenue was down 4% from Rs 17,293.62 crore reported in the year-ago period.

Tata Power Q1 Result Review: Time To Buy The Stock Post Result?

Tata Power's earnings before interest, tax, depreciation and amortisation (EBITDA) surged around 15% on a year-on-year basis to Rs 35.7 billion, which was higher than the Rs 33.1 billion estimated by Axis Securities analysts. The company also delivered higher growth than expected in the renewable cluster, solar EPC, etc

The company's net profit and EBITDA margins reported during the June quarter of FY26 were in line with Antique Stock Broking's estimates. "EBITDA mix remains diversified, with renewables contributing 40%, T&D 34%, thermal/ coal 25%, and the remainder from other segments. The stock is trading at 2.4x 1HFY28E PBV, representing a modest premium to its historical +1 SD. We believe this premium is warranted, given the company's visibility on cash flows and execution-led growth, underpinned by a 10 GW capacity expansion, 5 GW of solar cell/ module manufacturing and INR 12 bn solar EPC order book," noted Antique Broking.

Tata Power Share Price Recommendation With Target Price

Axis Securities gave a 'Buy' rating for Tata Power stock with a Rs 462 per share indicating an upside of 19% in near term. "TPWR reiterated its guidance of ~Rs 250 bn capex in FY26 (Q1 capex at Rs 37 bn was a slow start) and targets to add 1.7 GW of RE IPP capacity in FY26 (2.7 GW targeted earlier) vs ~1.0 GW in FY25. We maintain BUY; further slippages vs capex plan presents a downside risk," noted Axis Securities in its report.

Antique Stock Broking also maintained a 'Buy' rating for Tata Power stock but degraded its target price by 2%. As per the brokerage report, the stock price can touch a target price of Rs 467 in near-term.

Tata Power Q1 Result Recap

Tata Power reported a net profit of Rs 1,059.86 crore in the June quarter of financial year 2025-26. The company had reported a net profit of Rs 1,042.83 crore in the March quarter of FY25, and Rs 970.91 crore in the June quarter of FY25.The company's consolidated revenue from operations stood at Rs 18,035.07 crore in Q1FY26 against Rs 17,293.62 crore in Q1FY25. Tata Power's earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 3,930 crore, which was 17% higher June quarter's EBITDA in FY26.

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