Key Companies to Monitor: ITC, Tata Power, and Others on March 25, 2026

Morgan Stanley has recently initiated coverage on Fractal Analytics, setting a target price of Rs 946. Analysts view Fractal as a strong contender in the tech services sector, particularly due to its robust positioning in the rapidly growing data and analytics market. They anticipate that the company’s innovative approach to delivering AI services will enable it to achieve revenue growth that outpaces the industry average. Additionally, improvements in gross margins and operational efficiencies are expected to enhance earnings before interest and taxes (EBIT) margins to 15%, narrowing the gap with its competitors.

ITC’s Strategic Pricing Moves

UBS has assigned a buy rating to ITC, with a target price of Rs 395. The company has recently implemented price increases across its cigarette portfolio in response to new excise duties that took effect on February 1. ITC has adopted a three-pronged pricing strategy aimed at protecting its sales volumes. This strategy includes maintaining a same-price option for sensitive variants, which is expected to mitigate the impact on volumes, despite potential trade destocking. However, this approach may lead to a mid-single-digit decline in net realizable value. Despite these challenges, analysts believe ITC will likely surpass the bearish consensus expectations for the fiscal year 2027.

Tata Power’s Positive Developments

Motilal Oswal Securities has issued a buy rating for Tata Power, setting a target price of Rs 455. Analysts highlight the company’s recent finalization of a supplemental power purchase agreement (SPPA) with Gujarat as a significant positive development. This agreement addresses the viability challenges faced by the Mundra plant, with expectations that losses could decrease by 75% from the current annual range of Rs 1,700-1,800 crore if adopted by all states. Furthermore, Tata Power’s strong performance in its distribution businesses in Odisha and Delhi, along with growth in the rooftop solar segment and plans for a 10GW ingot/wafer manufacturing capacity, are seen as key drivers for future growth.

Challenges Facing Coal India

Nuvama has issued a reduce rating for Coal India, with a target price of Rs 384. Analysts express concerns that the company’s narrative of increased volume and e-auction prices, driven by higher global coal prices, may not materialize due to an oversupply in the domestic market and lower demand. While they expect higher volumes, blended e-auction prices are anticipated to remain stable. Analysts are cautious about the company’s volume growth prospects for fiscal year 2026, with a compounded annual growth rate (CAGR) of 4% from fiscal years 2026 to 2028 appearing at risk due to increased output from captive miners. Additionally, a wage revision for non-executive employees is due in July 2026, which may further strain earnings.

Power Grid Corp’s Capitalization Plans

Kotak Institutional Equities has assigned a reduce rating to Power Grid Corporation, setting a target price of Rs 300. The company has increased its capital expenditure and capitalization guidance for fiscal year 2026 to Rs 35,000 crore and Rs 25,000 crore, respectively. This improvement is largely attributed to the resolution of right-of-way issues. The company also noted the Central Electricity Authority’s latest estimate for transmission capital expenditure of Rs 7.9 lakh crore for non-fossil fuel generation capacities by fiscal year 2036, which presents potential opportunities from global undersea projects and the Brahmaputra basin. While the management is targeting an average annual capex of Rs 40,000 crore and Rs 35,000 crore over fiscal years 2029 to 2036, analysts caution that current valuations at 16 times price-to-earnings are becoming saturated.

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