Tata Power Q1 Review — Renewables, Distribution Drive Earnings Growth, Says Motilal Oswal Maintaining 'Buy'

Tata Power’s Q1 FY26 Ebitda came in 25% above estimate at Rs 41 billion, while adjusted PAT was in line with estimate at Rs 10.6 billion. Healthy Q1 Ebitda was backed by: robust improvement in the Odisha distribution business as its AT&C losses narrowed and collection efficiency improved, a strong performance in the solar EPC business, and a higher contribution from the cell and module business with the facility operating at over 90% utilization now.

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

The valuation of Tata Power Company Ltd. is segmented across various business units, leading to a target price of Rs 487/share.

Regulated business is valued using a 2.5x multiple on regulated equity.  Coal segment is valued at 1.5x FY25 book value.

Renewables segment is valued at 14x FY27E Ebitda.

Pumped storage segment is valued at 1x PB, while other segments are valued at 1.5x PB. Cash and investments add Rs 66/share.

The sum of these contributions results in a target price of Rs 487/share, reflecting the comprehensive valuation of Tata Power's diverse business segments.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.