Shares of Tata Power Company Ltd fell nearly 4% in trade after the company reported a weak set of Q4FY26 earnings, with revenue, EBITDA and margins declining on a year-on-year basis.
The stock was trading at ₹401.95, down 3.93% on the NSE, after touching an intraday low of ₹390.80.
For the quarter ended March 2026, Tata Power reported consolidated net profit of ₹996 crore compared to ₹1,043 crore in the year-ago period, marking a decline of 4.5% YoY. Revenue from operations fell 12.8% to ₹14,900 crore from ₹17,096 crore a year earlier.
Operational performance also remained under pressure during the quarter. EBITDA declined 19.9% year-on-year to ₹2,599 crore, while EBITDA margin narrowed to 17.4% from 19% in the corresponding quarter last year.
The company’s board recommended a final dividend of ₹2.50 per share for FY26.
Despite the weak quarterly performance, brokerages remained constructive on the company’s long-term renewable and transmission growth story. Elara Capital maintained its ‘buy’ rating on Tata Power with a target price of ₹504.
The brokerage highlighted that Tata Power commissioned 2.5 GW of renewable capacity during FY26, while solar module and solar cell production exceeded 3.7 GW each during the year. The company’s board also approved a ₹6,500 crore investment towards a 10 GW ingot and wafer manufacturing facility.
Elara Capital noted that Tata Power is likely to benefit from India’s ongoing transmission capex cycle and rising investments in the green energy ecosystem.
The brokerage further pointed out that Tata Power’s profit after tax was supported by higher regulatory income, even as core operational metrics remained weak. It also cited the extension of Mundra SPPA operations with GUVNL till June 2026 as a positive development.
Tata Power, one of India’s largest integrated power companies, has been aggressively expanding its renewable energy portfolio, solar manufacturing capacity and EV charging infrastructure as part of its long-term clean energy transition strategy.
Investors, however, appeared cautious after the weak quarterly operational numbers, especially amid concerns around execution costs, thermal business pressures and margin compression.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice.