Tata Power delivered robust Q1 FY27 results with net profit rising 11% year-on-year to ₹1,180 crore compared to ₹1,064 crore in the same quarter last year, as reported by ICICI Securities. The company's revenue from operations increased 8% to ₹18,898 crore from ₹17,464 crore in Q1FY26. EBITDA also improved 8% to ₹3,860 crore from ₹3,570 crore in the corresponding quarter. According to the exchange filing dated July 27, the strong performance was driven by consistent earnings growth across the company's diversified business portfolio. Motilal Oswal has now confirmed these results in its latest research report dated July 28, 2026, noting that revenue came in at ₹190.5 billion, 4% above their estimate, while EBITDA reached ₹40.1 billion, 6% above their estimate, and adjusted PAT beat estimates by 9%, reaching ₹11.8 billion.
Tata Power achieved its highest-ever quarterly capital expenditure of ₹5,375 crore during Q1FY27 as reported by The Economic Times. The company accelerated investments across renewable energy, transmission, distribution, and clean energy infrastructure to strengthen its growth roadmap. Management noted that capital expenditure worth over ₹5,000 crore during the quarter has positioned the company for future growth initiatives.
The renewable energy segment continued to be a key growth driver with PAT rising 15% year-on-year to ₹612 crore in Q1FY27, as reported by The Economic Times. Tata Power's solar manufacturing business showed exceptional improvement with Solar Cell and Module Manufacturing PAT jumping nearly 3.9 times year-on-year to ₹371 crore. The rooftop solar business also witnessed strong momentum with PAT increasing 1.7 times YoY to ₹145 crore, supported by higher adoption across consumer segments and nationwide project execution. The renewable growth pipeline remains robust with the company expecting to commission 2.5 GW of renewable capacity during FY27 while maintaining an under-construction pipeline of 9.8 GW across solar, wind, hybrid and other projects. Motilal Oswal specifically highlighted that the strong results were driven by healthy performances in the solar cell & module manufacturing and Indonesian coal mining businesses.
The quarter marked a significant milestone with the end of the nine-month drag from the Mundra plant shutdown, as reported by ICICI Securities. Tata Power has secured a supplementary PPA for almost half the plant's capacity with Gujarat and expects to close SPPAs with the remaining states over the next couple of months. The company is building a near-fully integrated renewable business comprising generation, solar rooftop and EPC, solar cell and modules, and the planned solar wafer/ingot manufacturing. The medium-long-term growth levers remain intact with an execution pipeline including hydro, PSP and transmission projects, with a potential nuclear power foray. ICICI Securities has reiterated its BUY rating with an unchanged target price of ₹485, noting that the company has reiterated its target of 2.5GW RE capacity addition in FY27.
Despite the strong quarterly performance, Tata Power shares traded about 1% lower at ₹373 during Tuesday's session, as reported by The Economic Times. However, ICICI Securities has now upgraded its stance on the stock, recommending a 'Buy' rating with a target price of ₹485 in its latest research report dated July 29, 2026. The brokerage noted that the target price of ₹485/share reflects the comprehensive valuation of TPWR's diverse business segments. Wall Street brokerage Morgan Stanley maintained its 'Equal Weight' rating on the stock with a target price of ₹399, while ICICI Securities has maintained its Buy rating with an unchanged target price of ₹485, implying a potential upside of 31%. 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.
