TATA POWER Q3 REVIEW : Hidden Growth in GREEN ENERGY Amidst Revenue Dip. BUY OR SELL?

 Tata Power has been a favorite among retail investors for its transition from a traditional power generator to a green energy giant. The stock has recently corrected from its highs of ₹417 to current levels of ₹370-380. The recent Q3 (December 2025) results present a mixed picture
while headline numbers seem weak, the core growth engine-  "Renewables" is gaining momentum.

Here is a detailed breakdown of the numbers and what they mean for your portfolio.

 Financial Health Check (Q3 FY26 Update)

The company announced its results for the quarter ending December 31, 2025. At first glance, the numbers appear to be under pressure, which justifies the recent stock correction.

The "Hidden Gem": Renewable Segment Growth

While the overall revenue has dropped due to seasonal weakness in the traditional thermal power business, the Renewable Energy segment has outperformed.

• The earnings from renewables jumped from ₹3,613 Cr to ₹3,785.43 Cr Quarter-on-Quarter.

• Why this matters: The market values Tata Power for its future (Green Energy), not its past (Coal). A rise in renewable revenue confirms that the company's long-term strategy is intact, even if short-term sales are down.

Technical Analysis & Levels

The stock is currently trading in a crucial demand zone.

• Support Level: ₹365 - ₹370 (Strong buying interest seen here historically).

• Resistance: ₹415 (The stock needs to cross this for a fresh rally).

• RSI Indicator: The RSI is hovering near oversold territory, suggesting that the selling pressure is exhausted.

Final Verdict: Sleeping Giant or Value Trap?

The drop in Revenue (₹13k Cr vs ₹15k Cr) is a concern, but the stability in Net Profit shows efficient cost management. More importantly, the growth in the Renewable sector is a massive positive signal.

Strategy:

For long-term investors, the current dip around ₹370-375 offers an excellent accumulation opportunity. The "Headline" numbers are masking the "Underlying Growth." Once the market digests the weak revenue, the focus will shift back to the growing green portfolio.

Rating: ACCUMULATE on Dips

Target: ₹450+ (12 Months)

Disclaimer: This analysis is for educational purposes only. I am not a SEBI registered advisor. Please consult your financial advisor before making investment decisions.