Tata Power Q4 results show 25% YoY PAT growth driven by solar EPC and renewables. Analysts see up to 20% upside in Tata Power stock.
Tata Power Company Ltd, India’s largest private integrated utility, posted strong Q4 results for FY25, driven by robust performance across its solar EPC, generation, transmission & distribution (T&D), and renewable segments. The company reported a 25% year-on-year (YoY) increase in consolidated profit after tax (PAT) to ₹1,306 crore, while revenue grew 7% YoY to ₹17,328 crore.
The earnings before interest, tax, depreciation, and amortization (EBITDA) rose 14% YoY to ₹3,829 crore, highlighting margin improvements in key verticals, particularly solar EPC and regional operations in Orissa and the Mundra Ultra Mega Power Project (UMPP).
Tata Power Q4 Highlights
- Consolidated PAT: ₹1,306 crore (↑25% YoY)
- Revenue: ₹17,328 crore (↑7% YoY)
- EBITDA: ₹3,829 crore (↑14% YoY)
- Share Price Movement: Rose 1.9% to ₹404.55 before settling at ₹396.70
Stock Market Reaction: Tata Power Shares Rise
On Thursday, May 15, 2025, Tata Power shares climbed as much as 1.90% to ₹404.55 during intraday trading, following the earnings announcement. However, by 9:27 AM, the stock marginally declined by 0.08% to ₹396.70. In contrast, the BSE Sensex was down 0.28% at 81,100.55.
The upmove in Tata Power’s share price reflects investor optimism around the company’s strong operational performance and strategic renewable energy (RE) push.
Analyst Ratings: Mixed Outlook with Up to 20% Upside
Brokerage houses offered a mixed-to-positive outlook for Tata Power, with target prices implying up to 20% upside from current levels.
Key Analyst Targets:
- Antique Stock Broking: Buy, target price ₹477
- Motilal Oswal Financial Services (MOFSL): Buy, target price ₹476
- Nuvama Institutional Equities: Reduce, target price ₹374
“We stay optimistic on Tata Power’s long-term RE transition (70% mix by FY30), solar manufacturing (50% external sales by FY27), and optionality in rooftops, nuclear, and potential UP Discom acquisition. However, growth is back-ended and largely priced in,” Nuvama noted.
MOFSL’s valuation was driven by segment-wise multiples:
- Regulated business: 2.5x regulated equity
- Coal: 1.5x FY24 book value
- Renewables: 14x projected FY27 EBITDA
- Pumped storage: 1x price-to-book (PB)
- Others: 1.5x PB
- Cash and investments: ₹49/share added to valuation
Key Drivers Behind Tata Power’s Performance
The company’s solar EPC division, along with enhanced profitability in Odisha Discoms and the Mundra UMPP, were key contributors to the PAT growth.
- Odisha Discoms reported a threefold YoY jump in Q4 PAT
- Module manufacturing showed a strong 27% operating profit margin, buoyed by third-party sales
However, Nuvama pointed out that the firm missed its FY25 renewable energy (RE) capacity addition target by 500 MW and expects module sales to normalize from H2FY26 as they shift to internal consumption.
Growth Catalysts: Renewable Capacity and Clean Energy Transition
Looking ahead, Tata Power is focusing on scaling renewable capacity, targeting 2–2.5 GW annual additions, alongside expansion in pumped hydro and nuclear power. The company also has opportunities in solar rooftop solutions and potential distribution company (Discom) acquisitions.
“Timely commissioning of renewable capacity, solar EPC order inflows, and growth in pumped hydro and nuclear segments will be key catalysts for the stock,” said Antique Stock Broking.
Conclusion: Long-Term Growth Story Intact
Tata Power continues to solidify its position as a leader in India’s clean energy transformation. While near-term challenges such as missed RE targets exist, the company’s strategic investments in renewables, grid modernization, and manufacturing are expected to deliver substantial long-term value.
With most brokerages maintaining a positive stance and up to 20% upside potential, Tata Power remains a key stock to watch in India’s evolving energy landscape.
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Tata Power’s Q4 performance underscores its operational strength and strategic direction in India’s energy sector. Despite minor setbacks in renewable capacity additions, the company’s focus on clean energy expansion, solar manufacturing, and regional Discom growth positions it well for long-term success. With strong institutional interest and robust fundamentals, Tata Power remains a promising player in India’s transition to sustainable energy, offering investors potential upside in the medium to long term.
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