Tata Power down: Despite record high FY26 profit, why shares got downgrade call | New target price

Shares of Tata Power slipped nearly 7% in early deals today after the Tata Group firm reported its Q4 earnings. Tata Power stock slipped despite logging record FY26 profit. It clocked annual PAT of Rs 5,118 crore despite a 4.2% fall in total annual income to Rs 64,171.66 crore.

In Q4, Tata Power reported a 4.5% year-on-year (YoY) drop in its consolidated net profit to Rs 996 crore against Rs 1043 crore on a year on year basis. 

Profit was hit by the temporary suspension of operations at the Mundra Power Plant from July 3, 2025, due to the pending overhauling activities aimed at resolving the technical issues.
 
Goldman Sachs said Q4 PAT came 13% below estimates and flat on a year on year basis. Weak renewable generation and lower JV contribution weighed on earnings. It maintained a sell call on the stock. 

On the other hand, Elara Capital maintained a buy call on Tata Power with a target price of Rs 504. 

CLSA raised its price target to Rs 415 against the earlier target of Rs 369 with a hold call. It said this is the end of a weak year and in Q4, Mundra IPP and solar EPC disappointed but  coal mines shined. 

Nuvama downgraded the stock to reduce from Hold with a target price of Rs 390 (earlier Rs 388)

RE capacity addition and new initiatives to drive PAT by FY28E, said the brokerage adding that at the current market price, its finds most positives largely priced in and foresee growth to be back ended. The brokerage remains constructive on the company's long-term story. 

Meanwhile, Tata Power stock slipped 6.56% to Rs 390.05 against the previous close of Rs 418.40. Market cap  of the firm fell to Rs 1.28 lakh crore. 

Revenue from operations in Q4 fell 12.8% YoY to Rs 14,900 crore against Rs 17,096 crore in the fourth quarter of the 2024-25 fiscal year (Q4 FY25).

 Final Dividend 

Tata Power’s board of directors also recommended a final dividend of Rs 2.50 per equity share with a face value of Rs 1 each (250%) for the financial year ended March 31, 2026.

The board fixed Tuesday, June 23, 2026, as the record date for the same.