Results: The Tata Power Company Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

The Tata Power Company Limited (NSE:TATAPOWER) just released its latest quarterly results and things are looking bullish. Tata Power beat earnings, with revenues hitting ₹196b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 18%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from Tata Power's 20 analysts is for revenues of ₹744.9b in 2027. This reflects a decent 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 12% to ₹15.12. Before this earnings report, the analysts had been forecasting revenues of ₹742.7b and earnings per share (EPS) of ₹14.70 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

View our latest analysis for Tata Power

The consensus price target was unchanged at ₹406, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Tata Power, with the most bullish analyst valuing it at ₹525 and the most bearish at ₹305 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Tata Power's rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 9.1% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 10% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Tata Power to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Tata Power following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹406, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Tata Power going out to 2029, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Tata Power (1 is a bit concerning) you should be aware of.

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