Actions of Tata Power were trading down about 1% at Rs 373 during Tuesday’s session, even as Wall Street brokerage Morgan Stanley maintained its “Equal Weight” rating on the title. The brokerage retained its target price of Rs 399 following the company’s decent performance in Q1FY27, which saw net profit rise 11% year-on-year and revenue rise 8%.
In an exchange filing dated July 27, Tata Power reported consolidated profit after tax (TAP) of Rs 1,401 crore for the first quarter of FY27, compared to Rs 1,262 crore in the same quarter last year, representing a growth of 11% year-on-year.
The company’s operating revenue increased to Rs 18,898 crore in Q1 FY27 from Rs 17,464 crore in Q1 FY26, registering a growth of 8% YoY. EBITDA also improved by 8% to Rs 4,249 crore from Rs 3,930 crore in the corresponding quarter.
Tata Power rolled out its highest ever quarterly revenue capital expenditure of Rs 5,375 crore during the first quarter of FY27 as it accelerated investments across renewable energytransportation, distribution and clean energy infrastructure.
The company’s core businesses, including generation, transmission and distribution, and renewable energy, recorded strong growth, supported by improved operational efficiencies. These segments recorded a 12% increase in revenue, 12% increase in EBITDA and 14% growth in PAT on a year-on-year basis.
Tata Power’s renewable energy segment continued to be a key growth driver with PAT growing 15% YoY to Rs 612 crore in Q1FY27.
The company’s solar manufacturing business reported strong improvement with solar cell and module manufacturing PAT surging nearly 3.9 times year-on-year to Rs 371 crore.
The rooftop solar business also witnessed strong momentum with PAT increasing 1.7 times YoY to Rs 145 crore, supported by higher adoption across consumer segments and nationwide project execution.
The Transmission and Distribution (T&D) business reported PAT of Rs 492 crore and EBITDA of Rs 1,541 crore in Q1FY27, reflecting growth of 11% and 14%, respectively.
Tata Power’s Odisha DISCOM operations recorded PAT growth of 6% YoY at Rs 111 crore. The company also became the first private utility in the state to reach the milestone of one million registered customers.
The company is also progressing its hydroelectric pumped storage expansion plans, with 324 MW of the 1,000 MW capacity of the Bhivpuri pumped storage project already tied up with the Solar Energy Corporation of India (SECI).
Morgan Stanley maintains its “Equal Weight” ratingAccording to a report by ET Now, global brokerage firm Morgan Stanley has retained its ‘Equal Weight’ rating on Tata Power with a target price of Rs 399.
The brokerage noted that Tata Power’s quarterly performance was broadly in line with expectations, supported by consistent profit growth across its diversified business portfolio.Management PerspectivesDr. Praveer Sinha, CEO and Managing Director of Tata Power, said the company is well positioned to participate in India’s transition to reliable, 24-hour clean energy. He highlighted the company’s integrated approach to renewable energy combining solar, wind, battery storage and pumped storage solutions.
He added that capital expenditure worth over Rs 5,000 crore during the quarter strengthened Tata Power’s growth roadmap, while milestones such as return of Mundra plant operations, strong expansion of rooftop solar and cross-border energy partnerships strengthen its position as an integrated energy major.
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