Tata Power shares fall 2% as Mundra plant shutdown weighs on Q2 earnings: Should you buy, sell or hold?

Tata Power Q2 Results

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26 Aug, 2025 12:21

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The shares of Tata Power dropped more than 2 percent on November 12 after the company released its results for the second quarter of the ongoing financial year 2026. Brokerages calls remain mixed for the stock, as the earnings missed most estimates.

The shares of the company were trading at Rs 387.50 apiece in the afternoon, as seen at 12.05 pm. The company had released its results in the post-market hours of November 11.

Tata Power Q2 Results:

The Tata Group-company reported a consolidated net profit of Rs 919.44 crore for the July-September quarter of FY26. This marks a marginal decrease of nearly 0.8 percent year-on-year (YoY) from the Rs 926.53 crore net profit reported in the corresponding quarter of the previous financial year.

The firm's revenue from operations also dropped slightly, falling nearly 1 percent YoY to Rs 15,544.91 crore in Q2 FY26, from Rs 15,697.67 crore in Q2 FY25. The company noted that operations at Mundra Power plant have been suspended since July 3 to undertake pending overhauling activities aimed at resolving existing technical issues.

"Tata Power is very well positioned to expand further with 10 GW of clean capacity under construction including a healthy pipeline of 5 GW Hybrid and FDRE projects. The Company’s backward-integrated solar manufacturing facilities are operating at full capacity, with ALMM-listed modules and cells supporting the 'Make in India' clean energy push," said Praveer Sinha, CEO & Managing Director, Tata Power.

"The rooftop solar segment continues to lead the industry with record installations, while our Discoms drive service excellence across a growing customer base of over 13 million. With proposed amendments to the Electricity Act, Tata Power is well positioned to expand its distribution footprint to 40 million consumers by 2030. As India’s power sector evolves, Tata Power remains committed to innovation, sustainability, and energy self-reliance across the value chain," he added.

Motilal Oswal on Tata Power:

Motilal Oswal has a 'Buy' rating on the stock, with a target price of Rs 500 per share. This implies an upside potential of more than 26 percent from the stock's previous closing price. The domestic brokerage said that the firm's EBITDA and PAT came below its estimates.

Motilal noted that the weakness in results was largely attributable to Mundra plant shutdown during the quarter, which offset the stronger performance at Odisha distribution and the solid ramp-up at TP Solar on a YoY basis.

JM Financial on Tata Power:

JM Financial also maintained its 'Buy' rating for the stock, while raising the target price to Rs 475 apiece. This implies an upside potential of more than 20 percent from the stock's previous closing price.

"The stabilization of 4.9 GW integrated solar cell and module manufacturing, the acceleration in rooftop solar, strong performance at Odisha discoms, the expected signing of PPA for Mundra by Nov-end, the initiative to set up a 10 GW ingot and wafers facility and many more - all contribute to our continued positive outlook on the company's gradual and steady progress," the domestic brokerage said.

JP Morgan on Tata Power:

JP Morgan remains 'Neutral' on the stock, with a target price of Rs 400 per share. This implies an upside potential of more than 1 percent from the stock's previous closing price.

The international brokerage said that the company's profit was weighed down by losses incurred at Mundra power plant, but was cushioned by healthy profitability of Odisha discoms and rooftop solar businesses.

CLSA on Tata Power:

CLSA kept a 'Hold' call on the stock, with a target price of Rs 395.60 per share. This implies zero upside potential from the stock's previous closing price.

The international brokerage said that the stock has run ahead of its fundamentals on a retail frenzy of power stocks. However, it added that Odisha discoms, new concession wins and pump storage remain key long-term positives for the stock.

Tata Power share price history:

Tata Power shares have fallen nearly 3 percent in the past five days, and is down around 1 percent in 2025 so far. After hitting a 52-week high of Rs 447.70 apiece in December 2024, the stock tumbled more than 27 percent to hit a 52-week low of Rs 326.35 apiece in February this year. The stock has so far recovered nearly 19 percent since then.

The stock's P/E ratio currently stands at over 28.

Also read: Our LIVE blog on stock market updates

(With inputs from agencies)

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