Tata Power share price is in focus. The share price has fallen 7% in 5 days. On August 26, 2026, the Singapore International Commercial Court (SICC) rejected Tata Power’s application to set aside the Singapore International Arbitration Centre (SIAC) arbitral awards issued last year in favour of Kleros Capital. This unexpected legal setback brought the long-standing dispute back into sharp focus.
JM Financial cut its 12-month target price for Tata Power to Rs 422 from Rs 444, which is a 5% reduction. However, the brokerage house still sees about 20% upside potential for the stock from the current market price. It has retained the Buy rating on the stock.
Tata Power: What led to damaging legal liability
The dispute stems from a breach of confidentiality obligations under non-disclosure agreements (NDAs) signed in 2013 to explore coal mining in Russia. After the joint partnership dissolved, Tata Power independently obtained the mining licence in 2018. After this, the SIAC tribunal held Tata Power liable and ordered it to pay $490 million in damages for loss of opportunity.
Substantial provisioning requirement
Although Tata Power previously did not recognise any provision in its financial statements due to expecting a favourable outcome, the appeal’s rejection changes the dynamics. JM Financial now estimates a total liability/provision of $650 million (almost Rs 6,000 crore to Rs 6,200 crore) is required. This total comprises the $490 million damages claim, $150 million in simple interest (at 5.33% p.a.), and $10 million in legal counsel costs.
Incorporation of FY26 actuals and lower projections
In addition to factoring in actual FY26 financial performance, JM Financial also revised Tata Power’s future earnings estimates lower. Specifically, they reduced their Adjusted net profit projections by 1% for FY27, 3% for FY28, and 2% for FY29.
Tata Power Q1FY27
The company reported a net profit of Rs 1,401 crore in Q1 FY27, up 11% YoY. Its revenue surged 5.6% year-over-year to Rs 19,051 crore in Q1FY27, compared to Rs 17,464 crore in Q1 FY26. The company’s EBITDA stood at Rs 4,249 crore in Q1 FY27, marking an 8% increase YoY.
Tata Power share price performance
The share price of Tata Power has fallen almost 7% in the last five trading days. The stock has dropped 5.4% in the past one month and 4.6% in the last six months. Tata Power’s stock price has erased more than 5% of investors’ wealth over the previous 12 months.