Tata Power Share Price Down 3% After Net Profit Falls 25% YoY; Buy On Dip, Hold Or Exit? Check Target Price

Tata Power Share Price Today: Shares of Tata Power Company Limited declined nearly 3% during Thursday's opening trade after the company reported a 25% year-on-year decline in its consolidated net profit during the third quarter of financial year 2025-26.

Tata Power shares were trading 2.44% lower at Rs 362.25 per share on BSE with a market capitalisation of Rs 1,15,751.18 crore at 9:40 am. The stock had dipped to an intraday low of Rs 361.05 per share and an intraday high of Rs 366.60 per share.

Tata Power Q3 Result Review

The decline in Tata Power shares was the result of Mundra shutdown during the third quarter. Apart from the Mundra shutdown, the company's Odisha distribution business reported a stellar improvement in profitability on an annual basis driven by lower ECL charges and improved cash collections.

One of the key positives in Tata Power result is the management guidance that it is to finalising the Mundra SPPA with the Gujarat government. Additionally, the cell and module assets continue to operate at industry-leading scale.
However, finalisation of the Mundra SPPA and restart of the plant by the end of FY26 will be closely monitored.

Tata Power Share Price Recommendation

Tata Power reported a decline in its profit because of third quarter amid the Mundra shutdown. While the company reported a weaker-than-expected performance during the quarter, the dip was attributable to the standalone business. Motilal Oswal has maintained a 'Buy' rating for Tata Power share price.

"The valuation of TPWR is segmented across various business units. The regulated business is valued using a 2.5x multiple on regulated equity; the coal segment is valued at 1x book value; the renewables segment is valued at 12x FY28E EBITDA," stated Motilal Oswal in its report.

Tata Power Share Price Target

Motilal Oswal gave a 'Buy' rating for Tata Power shares with a target price of 455 per share. "The valuation of TPWR is segmented across various business units, leading to a TP of INR455/share. Regulated business is valued using a 2.5x multiple on regulated equity," noted the company in its press release.

Tata Power saw a 25% year-on-year decline in its net consolidated profit (attributable to owners of the company) to Rs 771 crore in Q3FY26 against Rs 1,030.70 crore reported in the year ago period. The company had reported a net consolidated profit of Rs 919.44 crore during the quarter.

It had posted a consolidated profit of Rs 1,188 crore during the quarter, according to a regulatory filing.The company's total income trimmed to Rs 14,269.08 crore in the third quarter of the current fiscal year from Rs 15,793.43 crore in the year-ago period, registering a fall of around 10 per cent.