The company’s steady growth in renewables and discom profitability is being weighed down by range-bound price action.
Shares of Tata Power fell nearly 1% on Monday even as the company reported consistent first-quarter (Q1) results marked by clean energy growth, higher margins, and solid transmission and distribution performance.
SEBI-registered analysts Rajneesh Sharma, Financial Independence, and Sudhansu Sekhar Panda flagged the company’s execution strength but noted that the stock remains stuck below crucial resistance.
Q1 Earnings Review
Tata Power reported consolidated revenue of ₹17,464 crore for Q1, up 4% from the previous year.
Profit after tax attributable to shareholders stood at ₹1,060 crore, while consolidated PAT stood at ₹1,262 crore, up 9% year-on-year. EBITDA rose 17% to ₹3,930 crore, with margins improving to approximately 22.5%.
Sharma said the company posted its 23rd straight quarter of profit growth, driven by nearly 95% profit after tax growth in the renewables segment and continued strength in transmission and distribution.
Rooftop solar revenue doubled to ₹823 crore, and TP Solar contributed ₹1,613 crore in revenue and ₹100 crore in PAT.
Financial Independence said the bottom-line uplift was healthy, and margin gains came from stronger renewable energy contribution and operational efficiency.
The firm rated the quarter “positive” and noted the constructive outlook due to stable power demand and ongoing capex in clean energy.
According to Sharma, Odisha discoms recorded a 156% jump in profit to ₹105 crore, while T&D adjusted PAT rose 26% to ₹440 crore.
He added that Tata Power has applied to expand its discom license in Maharashtra and commissioned 270 MWp rooftop solar capacity in the quarter.
Technical Outlook
Sharma said Tata Power is consolidating in a tight ₹375–₹415 range, with a clear breakout needed above ₹415 to trigger momentum toward ₹425 or higher.
The relative strength index (RSI) near 49 signals mild short-term fatigue, while low volume on recent up moves suggests a lack of strong buying conviction.
Meanwhile, Panda echoed this view, describing a broad ascending triangle pattern on the daily chart with key resistance in the ₹415–₹420 zone. He warned that a breakdown below ₹380 could disrupt the higher-high pattern and open downside toward ₹340–₹360.
Major exponential moving averages (EMAs) (50 and 100-day) between ₹394–₹398 indicate the stock is rangebound, he said.
Panda suggested that if the stock breaks above ₹420, it could rally to ₹450–₹470 over time, while any 12–17% correction may offer dip-buying opportunities.
Brokerage Views
ICICI Securities maintained its ‘buy’ rating with a target of ₹465, noting Tata Power’s transformation from a conventional power player to a diversified green energy firm. “Its new businesses are now contributing significantly to growth,” the brokerage said.
JM Financial said Tata Power exceeded expectations and pointed to future drivers, including rooftop solar expansion, solar module manufacturing, hydro storage development, and the expected signing of a power purchase agreement (PPA) for the Mundra plant.
On Stocktwits, retail sentiment for Tata Power was ‘bullish’ amid ‘high’ message volume.
The stock has declined 1.4% so far in 2025.
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