Tata Power shares get Equal Weight rating from Morgan Stanley with target price of Rs 399

Shares of Tata Power were trading about 1% lower at Rs 373 during Tuesday’s session, even as Wall Street brokerage Morgan Stanley maintained its “Equal Weight” rating on the stock. The brokerage retained its target price of Rs 399 following the company’s decent Q1 FY27 performance, which saw net profit rise 11% year-on-year and revenue grow 8%.

In an exchange filing dated July 27, Tata Power reported a consolidated profit after tax (PAT) of Rs 1,401 crore for Q1FY27, compared with Rs 1,262 crore in the same quarter last year, marking an 11% year-on-year growth.

The company’s revenue from operations increased to Rs 18,898 crore in Q1FY27 from Rs 17,464 crore in Q1FY26, registering an 8% YoY growth. EBITDA also improved by 8% to Rs 4,249 crore from Rs 3,930 crore in the corresponding quarter.

Tata Power deployed its highest-ever quarterly capital expenditure of Rs 5,375 crore during Q1FY27 as it accelerated investments across renewable energy, transmission, distribution, and clean energy infrastructure.

The company’s core businesses, including Generation, Transmission & Distribution, and Renewables, delivered strong growth, supported by improved operational efficiency. These segments recorded a 12% increase in revenue, a 12% rise in EBITDA, and a 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 rising 15% YoY to Rs 612 crore in Q1FY27.The company’s solar manufacturing business reported a sharp improvement, with Solar Cell and Module Manufacturing PAT jumping 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 & 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 posted PAT growth of 6% YoY to Rs 111 crore. The company also became the first private utility in the state to cross the milestone of one crore registered customers.

The company is also progressing with its pumped hydro storage expansion plans, with 324 MW of the 1,000 MW Bhivpuri Pumped Storage Project capacity already tied up with the Solar Energy Corporation of India (SECI).

Morgan Stanley maintains ‘Equal Weight’ rating

According to an ET Now report, 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 earnings growth across its diversified business portfolio.

Management outlook

Dr Praveer Sinha, CEO and Managing Director of Tata Power, said the company is well positioned to participate in India’s transition toward reliable, round-the-clock clean energy. He highlighted the company’s integrated renewable energy approach combining solar, wind, battery storage, and pumped storage solutions.

He added that capital expenditure worth over Rs 5,000 crore during the quarter has strengthened Tata Power’s growth roadmap, while milestones such as the return of Mundra plant operations, strong rooftop solar expansion, and cross-border energy partnerships reinforce its position as an integrated power major.

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