Tata Power Company Ltd. is set to announce its second-quarter earnings on November 11, with leading brokerages forecasting significant growth in both revenue and profit. The power giant's financial performance is anticipated to be buoyed by key operational factors, including its Mundra plant and expanding discom business.
Brokerages Forecast Strong Q2 Performance
JM Financial expects Tata Power's revenue to climb by 28 percent, reaching an estimated Rs 20,167 crore for the quarter. Adjusted profit after tax (PAT) is projected to surge by an impressive 81 percent to Rs 1,305.3 crore. This optimistic outlook is largely attributed to the robust operational performance of the Mundra plant and the company's discom (distribution company) operations.
Motilal Oswal echoes a similar positive sentiment, predicting a consolidated revenue increase of 26 percent year-on-year, totaling Rs 19,570 crore. Their forecast highlights the Mundra plant's continued operation under Section 11, contributions from renewable energy assets commissioned over the past year, and strong performance from the Odisha Discoms as primary growth drivers.
Key Financial Projections (Motilal Oswal):
- EBITDA: Expected to rise 30% year-on-year to Rs 4,300 crore.
- Adjusted Net Profit: Seen rising 42% to Rs 1,300 crore.
- EBITDA Margin: Projected at 22% for Q2, up from 21.2% a year ago.
Motilal Oswal has set a price target of Rs 458 for Tata Power's stock.
Q1 FY27 Highlights Provide Context
In the first quarter of the fiscal year 2027 (Q1 FY27), Tata Power reported an 11 percent increase in its consolidated net profit, reaching Rs 1,401 crore, compared to Rs 1,262 crore in the same period of the previous fiscal year. Revenue from operations also saw a 5.6 percent rise to Rs 19,051.26 crore from Rs 18,035.07 crore in Q1 FY26. Total income for the quarter stood at Rs 19,439.65 crore, marking a 5.6 percent surge. The company also incurred a record quarterly capital expenditure of Rs 5,375 crore during Q1 FY27.
Stock Performance Overview
Ahead of the earnings report, Tata Power's stock gained 1.74 percent, closing at Rs 359.50 in the previous session. Its Relative Strength Index (RSI) stands at 55.6, indicating that the stock is neither oversold nor overbought. While trading higher than its 5-day, 10-day, 20-day, 30-day, and 50-day moving averages, it remains below its 100-day, 150-day, and 200-day averages. The stock has seen a 6 percent decline in 2026 and a 17 percent drop over two years, but has delivered a 48 percent return over the past five years.