Tata Power surges on coal strength; analyst sees 22% growth potential

Power consumption across India grew 10-11 percent year-on-year during the second quarter of fiscal 2027, propelled by increased demand from agricultural users and higher cooling loads during the summer season. The surge in electricity consumption has supported generation volumes at coal-dependent utilities, with Tata Power positioned to capitalise on the trend.

Motilal Oswal Financial Services has reiterated a positive stance on Tata Power, projecting the stock could appreciate by as much as 22 percent from current levels. The brokerage attributed the bullish view to the company's exposure to thermal generation capacity at a time when coal-fired plants are operating at elevated capacity utilisation rates.

India's electricity demand has remained resilient through the fiscal year, with farming-related consumption particularly strong as irrigation needs rise during the growing season. Cooler months typically see demand moderation, though industrial and commercial consumption patterns continue to underpin overall load growth across the national grid.

Tata Power, one of India's largest integrated power companies, operates a diverse generation portfolio spanning thermal, renewable and hydro assets. The company's substantial coal capacity positions it advantageously during periods of strong demand and elevated power prices.