Tata Power share price: Target cuts explained; is it still a buy?
Tata Power: While medium-long term growth levers are seen strongly in place, Tata Power's Mundra thermal plant is inoperative since July 2025, with ambiguity over the timeline of its resumption.
- Feb 5, 2026,
- Updated Feb 5, 2026 10:22 AM IST
Shares of Tata Power Company Ltd fell 2 per cent in Thursday’s trade, extending the stock’s decline to 13 per cent from its 52-week high of Rs 416.70 hit on June 11, 2025. Analysts said the company’s December quarter results were an all-round miss and that the Mundra issue continues to be an overhang, adding that a resolution of the issue is critical for the stock. A couple of them have a ‘Buy’ rating on the stock, albeit with lower target prices.
ICICI Securities said Tata Power has taken significant strides over the last few years, adding that the Tata group firm is building an almost fully integrated renewable business comprising renewable generation, solar cell and module manufacturing, solar rooftop and EPC and the planned solar wafer/ingot manufacturing.
Tata Power's distribution businesses in Odisha and Delhi have also seen strong improvement post takeover, ICICI Securities said adding that its execution pipeline also includes hydro, PSP and transmission projects. While medium-long term growth levers are seen strongly in place, Tata Power's Mundra thermal plant is inoperative since July 2025, with ambiguity over the timeline of its resumption.
"The impact, though limited by its improved performance in distribution, solar rooftop and manufacturing businesses, is still reflecting in earnings. While the issue could impact its near-term growth, long-term growth trajectory remains steady," ICICI Securities said. The brokerage has 'Buy' rating on the stock with a revised target of Rs 455 from Rs 465.
JM Financial cut its target price on Tata Power to Rs 429 from Rs 475 after what it called an all-round Q3 miss. It said delay in signing of PPA for Mundra continued to drag performance and estimated the company to report FY25-28 CAGR of 7 per cent, 11 per cent and 14 per cent in revenue, Ebitda and PAT.
MOFSL said the finalisation of the Mundra SPPA and restart of the plant by the end of FY26 will be watched. While Tata Power's own RE commissioning was weak at 559MW in 9MFY26 against FY26 target of 1.1GW, this should pick up in FY27 as third-party installation will significantly decline, the brokerage said. This brokerage suggested a target of Rs 455 on the stock.
Nuvama, meanwhile, retained its 'Hold' rating. "We find Tata Power's growth story materialising over FY28–30, as the RE/PSP projects come up to reach Rs 10,000 crore PAT target by FY30E. At CMP, we find most positives priced in while CGPL losses continue, pending its resolution. Retain ‘HOLD’ with an SotP-based target of Rs 388," it said.
Shares of Tata Power Company Ltd fell 2 per cent in Thursday’s trade, extending the stock’s decline to 13 per cent from its 52-week high of Rs 416.70 hit on June 11, 2025. Analysts said the company’s December quarter results were an all-round miss and that the Mundra issue continues to be an overhang, adding that a resolution of the issue is critical for the stock. A couple of them have a ‘Buy’ rating on the stock, albeit with lower target prices.
ICICI Securities said Tata Power has taken significant strides over the last few years, adding that the Tata group firm is building an almost fully integrated renewable business comprising renewable generation, solar cell and module manufacturing, solar rooftop and EPC and the planned solar wafer/ingot manufacturing.
Tata Power's distribution businesses in Odisha and Delhi have also seen strong improvement post takeover, ICICI Securities said adding that its execution pipeline also includes hydro, PSP and transmission projects. While medium-long term growth levers are seen strongly in place, Tata Power's Mundra thermal plant is inoperative since July 2025, with ambiguity over the timeline of its resumption.
"The impact, though limited by its improved performance in distribution, solar rooftop and manufacturing businesses, is still reflecting in earnings. While the issue could impact its near-term growth, long-term growth trajectory remains steady," ICICI Securities said. The brokerage has 'Buy' rating on the stock with a revised target of Rs 455 from Rs 465.
JM Financial cut its target price on Tata Power to Rs 429 from Rs 475 after what it called an all-round Q3 miss. It said delay in signing of PPA for Mundra continued to drag performance and estimated the company to report FY25-28 CAGR of 7 per cent, 11 per cent and 14 per cent in revenue, Ebitda and PAT.
MOFSL said the finalisation of the Mundra SPPA and restart of the plant by the end of FY26 will be watched. While Tata Power's own RE commissioning was weak at 559MW in 9MFY26 against FY26 target of 1.1GW, this should pick up in FY27 as third-party installation will significantly decline, the brokerage said. This brokerage suggested a target of Rs 455 on the stock.
Nuvama, meanwhile, retained its 'Hold' rating. "We find Tata Power's growth story materialising over FY28–30, as the RE/PSP projects come up to reach Rs 10,000 crore PAT target by FY30E. At CMP, we find most positives priced in while CGPL losses continue, pending its resolution. Retain ‘HOLD’ with an SotP-based target of Rs 388," it said.