Q4 Results: Tata Power Falls 5% On Profit Slip Even As Brokers Maintain Positive View on Stock

Mumbai, May 13:Tata Power shares declined as much as 5% following the company’s fourth-quarter results, as investors reacted to a drop in profitability.

At the time of writing, the stock was down 1.9% at Rs 410.60.

Tata Power reported a 4.5% decline in fourth-quarter net profit, as performance was weighed down by weakness in its hydro and thermal power segment following the shutdown of a key plant in Gujarat.

On a consolidated basis, net profit fell to Rs 996 crore, compared with Rs 1,043 crore in the same quarter last year. The decline was largely driven by a 39% drop in profit from the hydro and thermal power segment, which remained the primary drag on overall earnings during the period.

Revenue from operations decreased by about 13% to Rs 14,900 crore. At the same time, expenses declined by 8%, indicating some cost moderation, though not enough to fully offset the impact of reduced revenues and segment profitability.

The stock slid after the company reported weak earnings on output disruption at a key plant in Gujarat. Source: NSE

Still Positive

Despite the near-term earnings pressure, several brokerages quoted by reports maintained a “Buy” stance on the stock, citing key catalysts expected to support growth into FY27. Analysts pointed to Tata Power’s diversified portfolio across generation, transmission, distribution, and renewable energy as a structural strength. The company continues to expand its clean energy footprint, which is expected to play a central role in its future revenue mix.

Nuclear Push

A significant strategic focus remains the company’s nuclear energy push, including its increased emphasis on small modular reactors. Tata Power has been stepping up initiatives in this area as part of broader efforts to strengthen its low-carbon generation capacity. The move aligns with India’s long-term energy transition goals and could provide incremental growth opportunities over the coming years, subject to regulatory approvals and execution timelines.

Also, India’s rising electricity demand supported by industrial expansion, urbanisation, and electrification trends continues to provide a favourable backdrop for utility players with strong capacity addition pipelines.

The stock’s reaction highlights the market’s sensitivity to quarterly earnings, particularly when operational disruptions affect output. However, analysts suggest that such setbacks are likely to be temporary, with performance expected to stabilise as plant operations normalise. Investors are also watching upcoming project additions and capacity ramp-ups, which could support earnings visibility in the medium term.

Key Beneficiary

From a broader perspective, the power sector remains a key beneficiary of India’s infrastructure push and energy transition agenda. Companies with integrated operations and renewable exposure are often positioned to capture long-term structural growth.

Overall, while Tata Power’s shares fell following the Q4 results due to a profit slip and output disruption, brokerages continue to see value in the stock, highlighting FY27 catalysts, renewable expansion, and nuclear initiatives as potential drivers for future performance. The near-term volatility reflects earnings adjustments, but the longer-term investment narrative remains intact according to market watchers.

Source:

• https://www.nseindia.com/get-quote/equity/TATAPOWER/Tata-Power-Company-Limited,
• https://nsearchives.nseindia.com/corporate/VPTPCL_12052026164148_Outcome.pdf