Tata Power Company Limited (TATAPOWER) AI Stock Analysis

• Market Cap: ₹1.28T
• Dividend Yield: 0.59%
• Average Volume (3M): 423.17K
• Price to Earnings (P/E): 31.5
• Beta (1Y): 1.75
• Revenue Growth: 4.06%
• EPS Growth: 8.22%
• Country: IN
• Employees: 22,372
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): 2.90
• Shares Outstanding: 3,195,339,600
• 10 Day Avg. Volume: 564,198
• 30 Day Avg. Volume: 423,173
• PEG Ratio: 4.06
• Price to Book (P/B): 3.33
• Price to Sales (P/S): 1.83
• P/FCF Ratio: -26.11
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹369.00
• Price Target Upside: -3.38% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹419.00 ▲(9.71% Upside)

Tata Power's overall stock score is driven by its strong financial performance, particularly in revenue growth and profitability. However, the high P/E ratio suggests potential overvaluation, and the technical indicators reflect a neutral market sentiment. The lack of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business operations, enhancing long-term financial stability.

Renewable Energy Focus

Investment in renewables aligns with global energy trends, positioning Tata Power for future growth and regulatory compliance.

Stable Balance Sheet

A balanced leverage position supports financial flexibility and resilience, crucial for long-term strategic investments.

Negative Factors

High Capital Expenditures

Elevated capital spending can strain cash flow, limiting the company's ability to invest in growth opportunities and manage debt.

Operational Cost Challenges

Rising operational costs can erode profitability, necessitating efficiency improvements to sustain margins and competitive positioning.

Reliance on Debt Financing

Dependence on debt can increase financial risk, potentially affecting the company's ability to weather economic downturns.

Tata Power Company Limited Business Overview & Revenue Model

Company Description

The Tata Power Company Limited engages in the generation, transmission, distribution, and trading of electricity in India and internationally. It operates through Generation, Renewables, Transmission and Distribution, and Others segments. The Generation segment generates power from hydroelectric and thermal sources, such as coal, gas, and oil. The Renewables segment generates power from renewable energy sources, which include wind and solar. The Transmission and Distribution segment transmits and distributes electricity; sells power to retail customers through distribution network and related ancillary services. The Others segment offers project management contracts/infrastructure management, and property development services, as well as rents oil tanks. The company also manufactures and sells solar photovoltaic cells and modules, and pumps; operates electric vehicle charging stations and coal mines; generates electricity through waste heat sources; trades in power; and provides engineering, procurement, and construction, as well as logistics services. In addition, it offers solar powered water purifier solutions with reverse osmosis or ultra filtration technologies; and microgrid, rooftop solar, and home automation solutions. As of June 8, 2022, the company had an installed capacity of 13,735 MW. The Tata Power Company Limited was founded in 1915 and is based in Mumbai, India.

How the Company Makes Money

Tata Power generates revenue primarily through the sale of electricity, which comes from its diverse power generation portfolio that includes thermal, hydro, solar, and wind energy sources. The company earns money by supplying power to both residential and commercial customers through its distribution networks. Additionally, Tata Power engages in power trading, which allows it to buy and sell electricity in markets to optimize its revenue. The company also benefits from government initiatives promoting renewable energy, as it has made significant investments in solar and wind projects. Furthermore, Tata Power has established partnerships with various stakeholders, including governmental bodies and private enterprises, to enhance its operational capabilities and expand its market reach, contributing to its overall earnings.

Tata Power Company Limited Financial Statement Overview

Summary

Tata Power demonstrates robust revenue growth and profitability, supported by a stable balance sheet. The company maintains a balanced leverage position but needs to address high capital expenditures impacting free cash flow. Overall, Tata Power is financially strong, with opportunities to enhance cash flow management.

Income Statement

Tata Power has shown consistent revenue growth over the years, with a notable increase in the gross profit margin from 2024 to 2025. The net profit margin has remained stable, indicating efficient cost management. However, the EBIT margin declined in 2025, which suggests increased operational costs. Overall, the income statement reflects strong revenue growth and profitability, albeit with some operational cost challenges.

Balance Sheet

The company's balance sheet reveals a moderate debt-to-equity ratio, which indicates a balanced leverage position. The return on equity has been stable, reflecting consistent shareholder value generation. However, the equity ratio is on the lower side, suggesting a higher reliance on debt financing. Despite this, the overall financial health remains stable with adequate asset management.

Cash Flow

Tata Power's cash flow statement shows a strong operating cash flow, indicating good earnings quality. However, the negative free cash flow due to high capital expenditures poses a concern. The company needs to manage its capital expenditures to improve free cash flow. Despite these challenges, the operating cash flow to net income ratio reflects efficient cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	662.20B	654.78B	614.49B	551.09B	428.16B	327.03B
Gross Profit	236.00B	227.91B	186.99B	152.80B	137.30B	111.26B
EBITDA	141.22B	138.18B	106.01B	78.30B	74.94B	68.32B
Net Income	40.60B	39.71B	36.96B	33.36B	17.41B	11.27B
Balance Sheet
Total Assets	0.00	1.57T	1.40T	1.28T	1.13T	988.51B
Cash, Cash Equivalents and Short-Term Investments	130.33B	130.53B	106.11B	124.88B	70.34B	63.70B
Total Debt	0.00	628.66B	546.23B	529.23B	511.95B	467.05B
Total Liabilities	-427.45B	1.14T	1.01T	941.45B	868.56B	736.02B
Stockholders Equity	427.45B	359.79B	323.55B	287.87B	224.42B	223.22B
Cash Flow
Free Cash Flow	0.00	-45.93B	-7.37B	-4.97B	-5.75B	51.22B
Operating Cash Flow	0.00	126.80B	125.96B	71.59B	66.93B	84.58B
Investing Cash Flow	0.00	-154.49B	-90.35B	-73.75B	-62.77B	6.68B
Financing Cash Flow	0.00	42.92B	-44.97B	13.41B	-11.83B	-76.03B

Tata Power Company Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 381.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TATAPOWER, the sentiment is Negative. The current price of 381.9 is below the 20-day moving average (MA) of 385.08, below the 50-day MA of 391.66, and below the 200-day MA of 386.69, indicating a bearish trend. The MACD of -3.52 indicates Positive momentum. The RSI at 44.16 is Neutral, neither overbought nor oversold. The STOCH value of 50.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TATAPOWER.

Tata Power Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TORNTPOWER	75 Outperform	₹657.14B	23.58	―	1.48%	-1.26%	27.83%
CESC	73 Outperform	₹230.65B	15.91	―	3.53%	10.58%	2.69%
POWERGRID	72 Outperform	₹2.59T	17.07	―	3.42%	0.80%	-3.25%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
TATAPOWER	65 Neutral	₹1.28T	31.54	―	0.59%	4.06%	8.22%
NHPC	65 Neutral	₹774.47B	24.42	―	2.47%	15.72%	6.45%
SJVN	55 Neutral	₹290.29B	52.13	―	2.02%	6.92%	-44.22%

Tata Power Company Limited Corporate Events

Tata Power’s Legal Disputes Directed to Arbitration

Tata Power Company Limited has announced developments in ongoing litigations involving disputes with Maharashtra State Electricity Distribution Company Limited, Punjab State Power Corporation Limited, and Gujarat Urja Vikas Nigam Limited. The Central Electricity Regulatory Commission (CERC) has ruled that these disputes do not pertain to tariff regulation, thus falling outside its jurisdiction, and has directed them to be resolved through a three-member arbitral tribunal. This move could streamline the resolution process and potentially impact Tata Power’s operational focus and stakeholder relations.

Tata Power Opens Special Window for Physical Share Transfers

Tata Power Company Limited announced a newspaper advertisement regarding the opening of a special window for the re-lodgement of transfer requests for physical shares. This initiative is part of the company’s compliance with the SEBI Listing Regulations, aiming to streamline the process for shareholders holding physical share certificates. The announcement reflects Tata Power’s commitment to regulatory adherence and shareholder service, potentially enhancing its operational efficiency and stakeholder trust.

Tata Power Releases Q2 & H1 FY ’26 Financial Results Transcript

Tata Power Company Limited has released the transcript of its analyst call discussing the audited standalone and unaudited consolidated financial results for the quarter and half-year ending September 30, 2025. This release provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

Tata Power Renewables to Develop 80 MW Renewable Energy Project

Tata Power Renewable Energy Limited (TPREL) has signed a Power Purchase Agreement with Tata Power Mumbai Distribution to develop an 80 MW Firm and Dispatchable Renewable Energy project. This initiative will generate 315 million units of electricity annually, significantly reducing carbon emissions and supporting Tata Power Mumbai Distribution in meeting its Renewable Purchase Obligation. The project will enhance grid stability and provide reliable, low-emission electricity to around 8 lakh customers, reinforcing TPREL’s leadership in the renewable energy sector.

Tata Power Subsidiary Secures 80 MW Renewable Energy Project

Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power Company Limited, has signed a Power Purchase Agreement with Tata Power Mumbai Distribution to establish an 80 MW Firm and Dispatchable Renewable Energy Project. This strategic move, with a capital expenditure of approximately ₹1,200 crore, is expected to enhance Tata Power’s renewable energy portfolio and strengthen its market position in the sustainable energy sector.

Tata Power to Engage Investors in UK Roadshow

Tata Power Company Limited has announced that its management will participate in a Non-Deal Roadshow in London and Edinburgh from September 15 to 17, 2025. This initiative aims to engage with single and institutional investors through one-on-one meetings, reflecting the company’s proactive approach to investor relations and its commitment to transparency, although no unpublished price-sensitive information will be shared.