ICICI Securities research report on Tata Power
Tata Power has been integrating a diverse set of businesses in its portfolio. From a conventional thermal power and integrated Mumbai distribution business, it has come a long way in building its renewable pack – a trifecta of solar manufacturing, solar EPC and RE generation. Moreover, it has turned around Odisha discoms. Its new businesses are now contributing significantly to growth. It reported a good set of results in Q1FY26 - EBITDA came in at INR ~36bn (+24% YoY) driven by strong show in renewable segments and Odisha discoms. Its revenue was up ~5% YoY to INR 175bn and adj. profit stood at INR 10.6bn (+31% YoY). However, an old issue pertaining to its Mundra thermal plant has resurfaced. Its operation under temporary arrangements on cost plus basis have been discontinued post Jun’25; it is working on a long-term agreement with PPA counterparties.
Outlook
Maintain BUY with an SoTP-based revised TP of INR 465.
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