Tata Power gets price target, rating upgrade; bull case & bear case scenarios
Tata Power share price: The brokerage said the stock has corrected 8% post the adverse ruling in the Kleros arbitration case last week, implying a potential cash outgo of $490–640 mn.
- Sep 3, 2026,
- Updated Sep 3, 2026 9:35 AM IST
Shares of Tata Power Company Ltd have received a rating and price target upgrade from brokerage Nuvama. The brokerage upgraded the Tata Group firm to ‘BUY’ as per its Bull Case target price of Rs 421. Earlier the price target stood at Rs 400 per share. It said the stock has corrected 8% post the adverse ruling in the Kleros arbitration case last week, implying a potential cash outgo of $490–640 mn, that is Rs 20 per share implying its Bear Case target price of Rs 363. At the current market price, the arbitration overhang is largely priced in.
The stock was trading flat at Rs 366 in the current trading session. Market cap of the Tata Group firm stood at Rs 1.17 lakh crore. The stock is neither oversold nor overbought on charts, signals its relative strength index (RSI), which stands at 43.7. In terms of price action, the stock is trading lower than the 20 day, 30 day, 50 day, 100 day, 150 day, 200 day but higher than the 5 day and 10 day moving averages.
The brokerage upgraded the stock to ‘BUY’ from ‘HOLD’ given the stock has fallen 8% since the adverse Kleros arbitration ruling last week. The stock at the current market price trades at 2.4x P/B and 22x FY28E EPS.
The brokerage said it arrived at a Bear Case target price of Rs 363 by factoring in full Kleros liability and NOT assigning any value to the upcoming PSP and Bhutan HEP.
"We are assuming Tata Power could lose the final appeal and incur the full $640 mn liability, while also taking Rs 5000 crore of incremental debt to fund its FY30E targets due to arbitration cash outgo. Kleros liability: Rs 20/share impact—assumes the full $640mn liability. Higher debt: Rs 17/share impact—Rs 5000 crore of incremental debt by FY28-end to support the planned capex," said Nuvama.
Tata Power has suffered a setback in its long-running legal battle with Kleros Capital, with the Singapore International Commercial Court upholding an arbitral award of approximately $490 million in favour of Kleros.
The dispute stems from arbitration proceedings initiated by Kleros Capital in 2020. The matter has since moved through several legal challenges, with Tata Power contesting the awards issued in the case.
In 2025, Tata Power challenged the arbitral awards before the Singapore courts and also raised objections over the appointment of two arbitrators who were part of the majority that issued the award. The company had earlier challenged the Singapore International Arbitration Centre’s decision to reject its objections to the arbitrators’ appointment.
In its latest ruling, the Singapore International Commercial Court rejected Tata Power’s arguments and upheld the majority award. The court found that the decision to issue the final award did not breach judicial principles or fair-hearing requirements.
The ruling represents a fresh setback for Tata Power in the prolonged dispute. However, the company has indicated that the legal battle is not yet over.
Tata Power said it intends to appeal the Singapore court’s decision within the 28-day period allowed for filing an appeal.
The outcome puts the sizeable arbitration award back in focus and could have financial implications for Tata Power if the award ultimately remains enforceable. The company is now expected to pursue its available legal remedies as it continues to contest the award.
Shares of Tata Power Company Ltd have received a rating and price target upgrade from brokerage Nuvama. The brokerage upgraded the Tata Group firm to ‘BUY’ as per its Bull Case target price of Rs 421. Earlier the price target stood at Rs 400 per share. It said the stock has corrected 8% post the adverse ruling in the Kleros arbitration case last week, implying a potential cash outgo of $490–640 mn, that is Rs 20 per share implying its Bear Case target price of Rs 363. At the current market price, the arbitration overhang is largely priced in.
The stock was trading flat at Rs 366 in the current trading session. Market cap of the Tata Group firm stood at Rs 1.17 lakh crore. The stock is neither oversold nor overbought on charts, signals its relative strength index (RSI), which stands at 43.7. In terms of price action, the stock is trading lower than the 20 day, 30 day, 50 day, 100 day, 150 day, 200 day but higher than the 5 day and 10 day moving averages.
The brokerage upgraded the stock to ‘BUY’ from ‘HOLD’ given the stock has fallen 8% since the adverse Kleros arbitration ruling last week. The stock at the current market price trades at 2.4x P/B and 22x FY28E EPS.
The brokerage said it arrived at a Bear Case target price of Rs 363 by factoring in full Kleros liability and NOT assigning any value to the upcoming PSP and Bhutan HEP.
"We are assuming Tata Power could lose the final appeal and incur the full $640 mn liability, while also taking Rs 5000 crore of incremental debt to fund its FY30E targets due to arbitration cash outgo. Kleros liability: Rs 20/share impact—assumes the full $640mn liability. Higher debt: Rs 17/share impact—Rs 5000 crore of incremental debt by FY28-end to support the planned capex," said Nuvama.
Tata Power has suffered a setback in its long-running legal battle with Kleros Capital, with the Singapore International Commercial Court upholding an arbitral award of approximately $490 million in favour of Kleros.
The dispute stems from arbitration proceedings initiated by Kleros Capital in 2020. The matter has since moved through several legal challenges, with Tata Power contesting the awards issued in the case.
In 2025, Tata Power challenged the arbitral awards before the Singapore courts and also raised objections over the appointment of two arbitrators who were part of the majority that issued the award. The company had earlier challenged the Singapore International Arbitration Centre’s decision to reject its objections to the arbitrators’ appointment.
In its latest ruling, the Singapore International Commercial Court rejected Tata Power’s arguments and upheld the majority award. The court found that the decision to issue the final award did not breach judicial principles or fair-hearing requirements.
The ruling represents a fresh setback for Tata Power in the prolonged dispute. However, the company has indicated that the legal battle is not yet over.
Tata Power said it intends to appeal the Singapore court’s decision within the 28-day period allowed for filing an appeal.
The outcome puts the sizeable arbitration award back in focus and could have financial implications for Tata Power if the award ultimately remains enforceable. The company is now expected to pursue its available legal remedies as it continues to contest the award.