Tata Power: Broker Upgrade Sparks Stock Surge

Tata Power Company Ltd shares experienced an uptick on Thursday after Nuvama upgraded its rating to 'buy' from 'hold,' suggesting the stock price has largely factored in a recent adverse Kleros arbitration ruling. The brokerage also raised its price target for Tata Power to Rs 421. Nuvama identified pumped storage projects, transmission ventures, and opportunities in Bhutan's hydroelectric power sector as significant growth catalysts. Potential upside is also anticipated from new transmission projects secured via tariff-based competitive bidding and Tata Power's planned expansion into solar manufacturing, including ingots and wafers.

In parallel, Tata Power Renewable Energy Ltd (TPREL) commissioned a 100 MW Group Captive Solar Project in Tamil Nadu, increasing TPREL's utility portfolio to 12.3 gigawatts. This project will supply clean electricity to three Tata Group companies, including TP Solar, Tata Electronics, and Tata Realty and Infrastructure. The facility is projected to generate 240.63 million units of clean electricity annually and offset approximately 1.5 lakh tonnes of carbon dioxide emissions each year.

Earlier in Q1 FY27, Tata Power reported an 11% year-on-year increase in consolidated net profit, reaching Rs 1,176 crore. Revenue from operations grew 5.6% to Rs 19,051 crore. Despite a slight decline in consolidated EBITDA and margin moderation, the company maintained capital expenditure of Rs 5,375 crore, reflecting continued investment across its generation, transmission, and renewable energy businesses.