Brokerages bullish on Tata Power stock post Q2 earnings, see up to 28% upside; here’s why
For the second quarter of FY26, Tata Power reported a consolidated net profit of Rs 919 crore, marginally lower than Rs 926 crore in the corresponding period last year.
- Nov 12, 2025,
- Updated Nov 12, 2025 11:24 AM IST
Domestic brokerages have retained their bullish outlook on Tata Power despite the company posting a mixed set of numbers for the second quarter. Brokerages such as Motilal Oswal, JM Financial, and ICICI Securities have all issued a ‘Buy’ recommendation on the stock, believing the company’s long-term growth trajectory remains intact, driven by its strong positioning in the green energy segment.
Motilal Oswal has set the target price of Rs 500, implying a potential 28 per cent upside from the current levels. JM Financial and ICICI Securities have pegged their targets at Rs 475 and Rs 465, respectively.
For the second quarter of FY26, Tata Power reported a consolidated net profit of Rs 919 crore, marginally lower than Rs 926 crore in the corresponding period last year.
Revenue from operations for the July–September quarter dipped 0.97 per cent to Rs 15,545 crore, compared to Rs 15,698 crore a year ago. Operating profit (EBITDA) declined 12 per cent to Rs 3,302 crore from Rs 3,746 crore in Q2 FY25, while the EBITDA margin contracted to 21.2 per cent from 23.8 per cent.
Brokerages pointed out that the quarter’s subdued performance was primarily due to the shutdown of the Mundra thermal power plant, whose operations were halted after its temporary cost-plus arrangement under Section 11 was not extended beyond June 2025.
Tata Power’s management is in advanced stages of discussions, particularly with Gujarat, to finalize a new long-term agreement. Motilal Oswal and JM Financial said a resolution expected by November-end remains a key monitorable and could act as a major trigger for the stock.
While the Mundra issue lingers on, ICICI Securities noted that the company’s green businesses + Odisha discoms steady the ship. Tata Power’s 4.3GW solar cell and module manufacturing facility is now fully operational, delivering a strong production output of 928MW of cells and 970MW of modules in Q2.
Further bolstering its solar value chain, the company announced plans to set up a 10GW solar wafer and ingot manufacturing facility, marking a significant step toward backward integration. Brokerages view this as a major positive for the company’s long-term strategy.
In addition, Tata Power achieved a record 370 MWp installation in the rooftop solar segment, alongside robust profit growth from its now-profitable Odisha discoms. The company is also exploring new growth avenues in hydro projects in Bhutan and discom privatization in Uttar Pradesh, which could further enhance its renewable and distribution portfolio.
At last check, Tata Power shares were trading 1.31 per cent lower at Rs 390.40 on the BSE.
Domestic brokerages have retained their bullish outlook on Tata Power despite the company posting a mixed set of numbers for the second quarter. Brokerages such as Motilal Oswal, JM Financial, and ICICI Securities have all issued a ‘Buy’ recommendation on the stock, believing the company’s long-term growth trajectory remains intact, driven by its strong positioning in the green energy segment.
Motilal Oswal has set the target price of Rs 500, implying a potential 28 per cent upside from the current levels. JM Financial and ICICI Securities have pegged their targets at Rs 475 and Rs 465, respectively.
For the second quarter of FY26, Tata Power reported a consolidated net profit of Rs 919 crore, marginally lower than Rs 926 crore in the corresponding period last year.
Revenue from operations for the July–September quarter dipped 0.97 per cent to Rs 15,545 crore, compared to Rs 15,698 crore a year ago. Operating profit (EBITDA) declined 12 per cent to Rs 3,302 crore from Rs 3,746 crore in Q2 FY25, while the EBITDA margin contracted to 21.2 per cent from 23.8 per cent.
Brokerages pointed out that the quarter’s subdued performance was primarily due to the shutdown of the Mundra thermal power plant, whose operations were halted after its temporary cost-plus arrangement under Section 11 was not extended beyond June 2025.
Tata Power’s management is in advanced stages of discussions, particularly with Gujarat, to finalize a new long-term agreement. Motilal Oswal and JM Financial said a resolution expected by November-end remains a key monitorable and could act as a major trigger for the stock.
While the Mundra issue lingers on, ICICI Securities noted that the company’s green businesses + Odisha discoms steady the ship. Tata Power’s 4.3GW solar cell and module manufacturing facility is now fully operational, delivering a strong production output of 928MW of cells and 970MW of modules in Q2.
Further bolstering its solar value chain, the company announced plans to set up a 10GW solar wafer and ingot manufacturing facility, marking a significant step toward backward integration. Brokerages view this as a major positive for the company’s long-term strategy.
In addition, Tata Power achieved a record 370 MWp installation in the rooftop solar segment, alongside robust profit growth from its now-profitable Odisha discoms. The company is also exploring new growth avenues in hydro projects in Bhutan and discom privatization in Uttar Pradesh, which could further enhance its renewable and distribution portfolio.
At last check, Tata Power shares were trading 1.31 per cent lower at Rs 390.40 on the BSE.