Update shared on 13 Nov 2025
Fair value Increased 1.14%Analysts have raised Tata Power's fair value estimate from ₹413.91 to ₹418.64. They cite stronger revenue growth projections, which more than offset a slightly higher discount rate and modestly lower profit margin expectations.
What's in the News
- ACME Solar Holdings Limited, through its SPV, signed a 25-year Power Purchase Agreement with Tata Power for a 50 MW renewable energy project. The project will combine solar and battery energy storage technologies. The PPA has a tariff of INR 4.43 per unit and includes a minimum annual capacity utilization factor of 40% (Client Announcements).
- Tata Power's Board Meeting is scheduled for November 11, 2025. The meeting will review audited and unaudited financial results for the quarter and half year ended September 30, 2025, along with other business matters (Board Meeting).
- Tata Power Renewable Energy Limited entered into a Memorandum of Understanding with Bank of Baroda to provide financing solutions for MSME and commercial & industrial customers adopting solar energy. The partnership offers benefits such as collateral-free loans, flexible repayment terms, and pan-India coverage (Strategic Alliances).
- Tata Power and Tata Passenger Electric Mobility Limited launched India's largest TATA.ev Mega Charger Hub in Mumbai. The hub features 16 charging bays and high-speed DC chargers. This expansion supports the company's goal of building a comprehensive, nationwide EV charging ecosystem by 2030 (Business Expansions).
Valuation Changes
- The Fair Value Estimate has increased slightly from ₹413.91 to ₹418.64.
- The Discount Rate has risen modestly from 12.73% to 12.76%.
- The Revenue Growth projection has increased from 9.06% to 10.49%.
- The Net Profit Margin expectation has decreased from 7.64% to 7.08%.
- The future P/E ratio forecast has grown from 29.12x to 30.31x.
Disclaimer
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