Tata Power shares get Equal Weight rating from Morgan Stanley with target price of Rs 399

Shares of Tata Energy have been buying and selling about 1% decrease at Rs 373 throughout Tuesday’s session, at the same time as Wall Road brokerage Morgan Stanley maintained its “Equal Weight” score on the inventory. The brokerage retained its goal value of Rs 399 following the corporate’s respectable Q1 FY27 efficiency, which noticed web revenue rise 11% year-on-year and income develop 8%.

In an alternate submitting dated July 27, Tata Energy reported a consolidated revenue after tax (PAT) of Rs 1,401 crore for Q1FY27, in contrast with Rs 1,262 crore in the identical quarter final 12 months, marking an 11% year-on-year progress.

The corporate’s income from operations elevated to Rs 18,898 crore in Q1FY27 from Rs 17,464 crore in Q1FY26, registering an 8% YoY progress. EBITDA additionally improved by 8% to Rs 4,249 crore from Rs 3,930 crore within the corresponding quarter.

Tata Energy deployed its highest-ever quarterly capital expenditure of Rs 5,375 crore throughout Q1FY27 because it accelerated investments throughout renewable power, transmission, distribution, and clear power infrastructure.

The corporate’s core companies, together with Technology, Transmission & Distribution, and Renewables, delivered sturdy progress, supported by improved operational effectivity. These segments recorded a 12% improve in income, a 12% rise in EBITDA, and a 14% progress in PAT on a year-on-year foundation.

Tata Energy’s renewable power section continued to be a key progress driver, with PAT rising 15% YoY to Rs 612 crore in Q1FY27.

The corporate’s photo voltaic manufacturing enterprise reported a pointy enchancment, with Photo voltaic Cell and Module Manufacturing PAT leaping practically 3.9 instances year-on-year to Rs 371 crore.The rooftop photo voltaic enterprise additionally witnessed sturdy momentum, with PAT growing 1.7 instances YoY to Rs 145 crore, supported by larger adoption throughout client segments and nationwide undertaking execution.

The Transmission & Distribution (T&D) enterprise reported PAT of Rs 492 crore and EBITDA of Rs 1,541 crore in Q1FY27, reflecting progress of 11% and 14%, respectively.

Tata Energy’s Odisha DISCOM operations posted PAT progress of 6% YoY to Rs 111 crore. The corporate additionally turned the primary personal utility within the state to cross the milestone of 1 crore registered prospects.

The corporate can be progressing with its pumped hydro storage enlargement plans, with 324 MW of the 1,000 MW Bhivpuri Pumped Storage Venture capability already tied up with the Photo voltaic Power Company of India (SECI).

Morgan Stanley maintains ‘Equal Weight’ score

Based on an ET Now report, international brokerage agency Morgan Stanley has retained its “Equal Weight” score on Tata Energy with a goal value of Rs 399.

The brokerage famous that Tata Energy’s quarterly efficiency was broadly in keeping with expectations, supported by constant earnings progress throughout its diversified enterprise portfolio.

Administration outlook

Dr Praveer Sinha, CEO and Managing Director of Tata Energy, mentioned the corporate is nicely positioned to take part in India’s transition towards dependable, round the clock clear power. He highlighted the corporate’s built-in renewable power strategy combining photo voltaic, wind, battery storage, and pumped storage options.

He added that capital expenditure price over Rs 5,000 crore throughout the quarter has strengthened Tata Energy’s progress roadmap, whereas milestones such because the return of Mundra plant operations, sturdy rooftop photo voltaic enlargement, and cross-border power partnerships reinforce its place as an built-in energy main.

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