Operating Leverage Inflection
Expected: OngoingHIGH confidence
What: Solar Manufacturing PAT: ₹251 Cr
Impact: 154% 9M PAT growth
“Once we have learned how to run the plant, it will only improve. It will not become worse.”
Tata Power Company Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +20.5%Average9w Streak
In , Tata Power Company Ltd (Power - Generation/Distribution) is outperforming Nifty 500 with +20.5% relative strength. Fundamentals: Average. On a 9-week streak.
Tata Power Company Ltd Key Facts
- PE Ratio
- 37.6x
- Market Cap
- ₹1,42,049 Cr
- PAT Growth YoY
- +1%
- Revenue Growth YoY
- -9%
- OPM
- 22.0%
- RS vs Nifty 500
- +20.5%
PE: At PeakStrong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
🌐FII stake increased 1.0% this quarter
💰Trading 41% below estimated fair value — significant discount
Earnings Acceleration Triggers
1. Operating Leverage Inflection
OngoingHIGH
2. Regulatory Approval Or License Win
2-3 weeksHIGH
3. Tam Expansion Changing Consumption
OngoingMEDIUM
Key Risks
1. Mundra plant remains non-operational pending final SPPA resolution, resulting in
HIGH2. Renewable project commissioning is being delayed by transmission line availabili
MEDIUM3. Potential increase in wafer and polysilicon prices from China
LOWSector-Specific Signals
Total Installed Renewable CapacityNot Given
Renewable Project Pipeline5.5 GW
Solar Cell & Module Manufacturing PAT₹251 Cr+124%
Rooftop Solar Executed (Quarterly)372 MW+115%
Key Numbers
PAT Growth YoY
+1%
Stable
Revenue YoY
-9%
Inflection Down
Operating Margin
22.0%
+200 bps YoY
PE Ratio
37.6
Current Price
₹445
Dividend Yield
0.51%
Fundamental Score
48/100
Average
3Y PAT CAGR
+30%
Market Cap
1.4L Cr
Valuation
Significantly Undervalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Tata Power Company Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Regulatory Approval Or License Win
Expected: 2-3 weeksHIGH confidence
What: Mundra SPPA: 1 point pending
Impact: Resolution of ₹800 Cr 9M loss
“We have been able to now conclude the arrangement with Gujarat on all the issues of the SPPA, except one point. We hope that in the next 2-3 weeks, we will be able to close that.”
Tam Expansion Changing Consumption
Expected: OngoingMEDIUM confidence
What: Rooftop Solar Installations: 1 GW crossed in 9M
Impact: ₹324 Cr 9M PAT
“Well, this is the tip of the iceberg, I would say. And the opportunity is phenomenal.”
Order Book Or Contract Wins
Expected: Next 2 yearsMEDIUM confidence
What: Renewable Pipeline: 5.5 GW
“As you are aware, we have a pipeline of nearly 5.5 gigawatts of projects, which we need to execute.”
Geographical Expansion
Expected: Mid-2026 startLOW confidence
What: Bhutan Hydro Project: 40% stake
Impact: ₹13,000 Cr project
“Work on all our other businesses, especially our PSP project in Bhivpuri and our hydro plant in Bhutan are going at full swing”
Solar Manufacturing PAT of ₹251 Cr
HIGH confidence
What: Solar Manufacturing PAT of ₹251 Cr
“solar cell and module manufacturing, where there has been a huge increase in our plant profit after tax, which has gone up to nearly Rs. 251 crores”
Renewable Capacity Addition FY27 guidance raised
HIGH confidence
What: 2.5 GW → 2.5 to 3.0 GW
“we have taken the initial estimate of 2.5, we can go up to 3 gigawatts of capacity add.”
What Are the Key Risks for Tata Power Company Ltd?
Earnings deceleration risks from management commentary
Mundra plant remains non-operational pending final SPPA resolution, resulting in
HIGHTrigger: Delay in finalizing the Supplementary PPA with state procurers prevents the recovery of capacity charges.
Impact: PAT impact: ₹800 Cr loss (9M)
Management view: Active discussions with Gujarat to close the final point within 2-3 weeks.
Monitor: regulatory
Renewable project commissioning is being delayed by transmission line availabili
MEDIUMTrigger: Interstate transmission lines are facing execution challenges, forcing the company to stagger project completion.
Management view: Timing project completion with transmission line availability to avoid stranded assets.
Monitor: logistics
Potential increase in wafer and polysilicon prices from China
LOWTrigger: Global price trends in raw materials for solar modules.
Impact: PAT impact: Minimal impact expected
Management view: Passing on costs through higher output price realization and using a mix of solar/wind.
Monitor: commodity
What Is Tata Power Company Ltd's Management Saying?
Key quotes from recent conference calls
“we are expecting about 700-megawatt capacity add in the 3rd Quarter and 600 megawatts in the 4th Quarter. [Previous Renewable Capacity Addition guidance]”
“we plan to spend Rs.25,000 crores in this financial year. [Previous Annual Capex guidance]”
“That is why we are doing the backward integration going for the wafer and ingot and we feel that the 10-gigawatt capacity will be good capacity [Initiative: Wafer and Ingot Manufacturing]”
“opportunity that will come up to set up these nuclear plants, especially the small modular nuclear plant in various parts of the country [Initiative: Small Modular Nuclear Plants]”
What Did Tata Power Company Ltd Report This Quarter?
Headline numbers from the latest earnings call
EBITDA
₹3,913 Cr
YoY +12%
Why: Growth was driven by the solar manufacturing, rooftop solar, and Odisha distribution businesses, offsetting the non-operation of the Mundra plant.
EBITDA growth was resilient despite a ₹800 crore loss impact from the Mundra plant being shut for six months.
PAT
₹1,194 Cr
YoY +7%
Why: PAT increased marginally due to strong performance in new businesses despite Mundra being non-operational for the quarter and having a substantial hit.
PAT growth was 7% for the 9-month period, reaching ₹3,702 crores.
Other Highlights
• Solar manufacturing PAT reached ₹251 Cr in Q3, up from ₹112 Cr in the previous year.
• Odisha Discoms profit rose to ₹226 Cr in Q3 compared to ₹86 Cr last year.
• Rooftop solar PAT increased to ₹111 Cr in Q3 from ₹60 Cr in the previous year.
What Sector Metrics Matter for Tata Power Company Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Total Installed Renewable Capacity
Not Given
Renewable Project Pipeline
5.5 GW
QoQ -0.3 GW
Why: Execution of projects into operational capacity.
Solar Cell & Module Manufacturing PAT
₹251 Cr
YoY +124%QoQ +4.6%
Why: Stabilized production and cost optimization.
Rooftop Solar Executed (Quarterly)
372 MW
YoY +115%
Why: Strong demand from PM Surya Ghar program and C&I segment.
Odisha Discoms PAT
₹226 Cr
YoY +163%QoQ +29.9%
Why: Improved collection and billing efficiencies and loss reduction.
Net Debt to Equity
1.2x
YoY 0%QoQ 0%
Why: Maintaining conservative leverage despite high capex.
Net Debt to Underlying EBITDA
3.4x
QoQ +0.1x
Why: Increased debt to fund capex programs.
TPDDL Regulatory PAT Impact
₹344 Cr
YoY +3.3%
Why: True-up order for tariffs for 2022-2023.
Solar Module Sales Volume
962 MW
Why: Internal consumption for rooftop and utility projects.
Maithon FGD Regulatory Return
₹15 Cr
YoY New
Why: Commissioning of the Flue Gas Desulfurization (FGD) unit.
What Is Tata Power Company Ltd's Management Guidance?
Forward-looking targets from management for Quarterly
OPM Guidance
5.5%
Capex Plan
₹25000 Cr
Margin Outlook
EPC PAT Margin Target
Capex Plan
₹25,000 Cr
Annual Capex Plan
Volume
Renewable Capacity Addition
Management Tone: BULLISH
Guidance Changes
RAISED
Renewable Capacity Addition FY27: 2.5 GW → 2.5 to 3.0 GW
How Fast Is Tata Power Company Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | -9% | +15% | Inflection Down |
| PAT (Net Profit) | +1% | +30% | Stable |
| OPM | 22.0% | +200 bps | Expanding |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
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Frequently Asked Questions: Tata Power Company Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Tata Power Company Ltd's latest quarterly results?
Tata Power Company Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +0.5% (stable)
- Revenue Growth YoY: -9.4%
- Operating Margin: 22.0% (expanding)
Is Tata Power Company Ltd's profit growing or declining?
Tata Power Company Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +0.5% (latest quarter)
- PAT Growth QoQ: -4.1% (sequential)
- 3-Year PAT CAGR: +30.4%
- Trend: Stable — consistent growth pattern
What is Tata Power Company Ltd's revenue growth trend?
Tata Power Company Ltd's revenue growth trend is inflecting downward.
- Revenue Growth YoY: -9.4%
- Revenue Growth QoQ: -10.3% (sequential)
- 3-Year Revenue CAGR: +15.2%
How is Tata Power Company Ltd's operating margin trending?
Tata Power Company Ltd's operating margin is expanding.
- Current OPM: 22.0%
- OPM Change YoY: +2.0% basis points
- OPM Change QoQ: +1.0% basis points
What is Tata Power Company Ltd's 3-year profit and revenue CAGR?
Tata Power Company Ltd's long-term compounding rates
- 3-Year Profit CAGR: +30.4%
- 3-Year Revenue CAGR: +15.2%
Is Tata Power Company Ltd's growth accelerating or decelerating?
Tata Power Company Ltd's earnings growth is stable with negative momentum on a sequential basis.
- YoY Acceleration: -13.4% bps
- Sequential Acceleration: -2.8% bps
- Note: YoY and QoQ trends are diverging — worth monitoring
What is Tata Power Company Ltd's trailing twelve month (TTM) performance?
Tata Power Company Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹5,000 Cr
- TTM PAT Growth: +10.9% YoY
- TTM Revenue: ₹65,000 Cr
- TTM Revenue Growth: +0.6% YoY
- TTM Operating Margin: 20.1%
Is Tata Power Company Ltd overvalued or undervalued?
Tata Power Company Ltd appears significantly undervalued based on our fair value analysis.
- Valuation Signal: Significantly Undervalued
- Current PE: 37.6x
- Price-to-Book: 3.8x
What is Tata Power Company Ltd's current PE ratio?
Tata Power Company Ltd's current PE ratio is 37.6x.
- Current PE: 37.6x
- Market Cap: 1.4 Lakh Cr
- Dividend Yield: 0.51%
How does Tata Power Company Ltd's valuation compare to its history?
Tata Power Company Ltd's current PE is 37.6x.
- Current PE: 37.6x
- Valuation Assessment: Significantly Undervalued
What is Tata Power Company Ltd's price-to-book ratio?
Tata Power Company Ltd's price-to-book ratio is 3.8x.
- Price-to-Book (P/B): 3.8x
- Book Value per Share: ₹118
- Current Price: ₹445
Is Tata Power Company Ltd a fundamentally strong company?
Tata Power Company Ltd is rated Average with a fundamental score of 48.08/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: -9.4% (10% weight)
- PAT Growth YoY: +0.5% (10% weight)
- PAT Growth QoQ: -4.1% (10% weight)
- Margins expanding (10% weight)
Is Tata Power Company Ltd debt free?
Tata Power Company Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹70,000 Cr
What is Tata Power Company Ltd's return on equity (ROE) and ROCE?
Tata Power Company Ltd's return ratios over recent years
- FY2023: ROCE 12.0%
- FY2024: ROCE 11.0%
- FY2025: ROCE 11.0%
Is Tata Power Company Ltd's cash flow positive?
Tata Power Company Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹13,000 Cr
- Free Cash Flow (FCF): ₹-3,000 Cr
- CFO/PAT Ratio: 266% (strong cash conversion)
What is Tata Power Company Ltd's dividend yield?
Tata Power Company Ltd's current dividend yield is 0.51%.
- Dividend Yield: 0.51%
- Current Price: ₹445
Who holds Tata Power Company Ltd shares — promoters, FII, DII?
Tata Power Company Ltd's shareholding pattern (Mar 2026)
- Promoters: 46.9%
- FII (Foreign): 10.0%
- DII (Domestic): 18.0%
- Public: 24.8%
Is promoter holding increasing or decreasing in Tata Power Company Ltd?
Tata Power Company Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 46.9% (Mar 2026)
- Previous Quarter: 46.9% (Dec 2025)
- Change: 0.00% (stable)
How long has Tata Power Company Ltd been outperforming Nifty 500?
Tata Power Company Ltd has been outperforming Nifty 500 for 9 consecutive weeks, indicating consistent outperformance.
Is Tata Power Company Ltd a new momentum entry or an established outperformer?
Tata Power Company Ltd is an established outperformer with 9 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Tata Power Company Ltd?
Tata Power Company Ltd has 7 key growth catalysts identified from recent earnings analysis
- Operating Leverage Inflection — Stabilized production and optimized input costs are driving higher profitability from the manufacturing facility.
- Regulatory Approval Or License Win — Closing the arrangement with Gujarat will allow the plant to restart and recover capacity charges.
- Tam Expansion Changing Consumption — The PM Surya Ghar program and increasing C&I demand are creating a massive long-term market.
- Order Book Or Contract Wins — A large pipeline of projects ensures steady capacity addition and revenue visibility.
What are the key risks in Tata Power Company Ltd?
Tata Power Company Ltd has 3 key risks worth monitoring
- [HIGH] Mundra plant remains non-operational pending final SPPA resolution, resulting in — Delay in finalizing the Supplementary PPA with state procurers prevents the recovery of capacity charges.
- [MEDIUM] Renewable project commissioning is being delayed by transmission line availabili — Interstate transmission lines are facing execution challenges, forcing the company to stagger project completion.
- [LOW] Potential increase in wafer and polysilicon prices from China — Global price trends in raw materials for solar modules.
What did Tata Power Company Ltd's management say in the latest earnings call?
In Q3 FY26, Tata Power Company Ltd's management highlighted
- "we are expecting about 700-megawatt capacity add in the 3rd Quarter and 600 megawatts in the 4th Quarter. [Previous Renewable Capacity Addition guida..."
- "we plan to spend Rs.25,000 crores in this financial year. [Previous Annual Capex guidance]"
- "That is why we are doing the backward integration going for the wafer and ingot and we feel that the 10-gigawatt capacity will be good capacity [Init..."
What is Tata Power Company Ltd's management guidance for growth?
Tata Power Company Ltd's management has provided the following forward guidance for Quarterly
- Revenue outlook: Not Given
- OPM guidance: 5.5%
- Capex plan: ₹25000 Cr for Annual Capex Plan
- Management tone: bullish
- Milestone: [RAISED] Renewable Capacity Addition FY27: 2.5 GW → 2.5 to 3.0 GW
What sector-specific metrics matter most for Tata Power Company Ltd?
Tata Power Company Ltd's most important sub-sector-specific KPIs from the latest concall
- Total Installed Renewable Capacity: Not Given
- Renewable Project Pipeline: 5.5 GW (QoQ -0.3 GW) — Execution of projects into operational capacity.
- Solar Cell & Module Manufacturing PAT: ₹251 Cr (YoY +124%) (QoQ +4.6%) — Stabilized production and cost optimization.
- Rooftop Solar Executed (Quarterly): 372 MW (YoY +115%) — Strong demand from PM Surya Ghar program and C&I segment.
- Odisha Discoms PAT: ₹226 Cr (YoY +163%) (QoQ +29.9%) — Improved collection and billing efficiencies and loss reduction.
- Net Debt to Equity: 1.2x (YoY 0%) (QoQ 0%) — Maintaining conservative leverage despite high capex.
Is Tata Power Company Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Tata Power Company Ltd may be worth studying
- Earnings growing at +0.5% YoY
- Operating margins are expanding — OPM at 22.0%
- Valuation: appears significantly undervalued
- Cash flow is positive — CFO ₹13,000 Cr
What is the investment thesis for Tata Power Company Ltd?
Tata Power Company Ltd investment thesis summary:
Research Signals (Bull Case)
- Margins expanding
- Appears significantly undervalued
- Growth catalyst: Operating Leverage Inflection
Risk Factors (Bear Case)
- Key risk: Mundra plant remains non-operational pending final SPPA resolution, resulting in
What is the future outlook for Tata Power Company Ltd?
Tata Power Company Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: inflecting downward
- Margin Trend: expanding
- Valuation: Significantly Undervalued
- Key Catalyst: Operating Leverage Inflection
- Key Risk: Mundra plant remains non-operational pending final SPPA resolution, resulting in
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.