The valuation of Tata Power Company Ltd. is segmented across various business units. The regulated business is valued using a 2.5 times multiple on regulated equity; the coal segment is valued at 1x book value; the renewables segment is valued at 12x FY28E Ebitda; the pumped storage segment and other segments are valued at 1x price-to-book; and for cash and investments, Motilal Oswal adds Rs 37/share. The sum of these contributions results in a target price of Rs 455/share.

Tata Power Q3 FY26 Results

Financial Performance

Tata Power reported revenue at Rs 13,950 crore (-9% YoY, -10% QoQ), missing brokerage’s estimates by 23%. The miss was attributed mainly to the continued shutdown of the Mundra plant.

Tata Power posted an Ebitda of Rs 3,050 crore (-9% YoY, -7% QoQ), which missed estimates by 4.3%. The Ebitda margin was 21.9% vs the projected 17.6%.

Adjusted profit after tax was Rs 770 crore (-25% YoY, 16% QoQ), missing Motilal Oswal estimates by 19.7%.

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