TATA Power Company
Tata Power Fundamental & Technical Analysis
STOCK ANALYSIS
9/23/20255 min read
About Company
Tata Power is one of India's largest and oldest integrated power companies, part of the Tata Group, and is based in Mumbai. The company operates across the entire power value chain, including electricity generation, transmission, and distribution, serving around 12.5 million customers nationwide. Tata Power has a diverse energy portfolio that includes thermal, hydro, solar, and wind power, with a growing focus on renewable energy—over 40% of its capacity comes from clean sources. With more than a century of history, Tata Power is known for its commitment to sustainability, ongoing innovation, and efforts to expand green energy and electric vehicle charging infrastructure in India.
Business Segments
Tata Power operates through multiple key business segments, including electricity transmission and distribution, power generation (thermal, hydro, and renewables), solar EPC and rooftop solutions, electric vehicle (EV) charging infrastructure, and rural electrification via microgrids. Transmission and distribution is the largest segment, contributing nearly 59% of Tata Power’s revenue, followed by thermal power generation and renewables. The company is rapidly expanding its clean energy portfolio and now leads in solar, wind, and EV charging across India, making these green businesses its fastest-growing verticals.
Company Facilities
Tata Power has an extensive network of facilities across India, including major thermal power plants in Trombay (Mumbai), Mundra (Gujarat), Maithon and Jojobera (Jharkhand), and Kalinganagar (Odisha). The company also operates hydroelectric stations in Maharashtra's Western Ghats and wind farms in states like Gujarat and Maharashtra. Tata Power’s renewable energy sites include large solar and wind projects, as well as a solar module manufacturing plant near Tuticorin in Tamil Nadu. The company serves nearly 13 million customers through multiple distribution companies, with notable operations in Delhi (Tata Power-DDL) and Ajmer (Rajasthan). Internationally, Tata Power has executed energy projects in countries like Singapore, South Africa, Georgia, Bhutan, and more.
Production Capacity
Tata Power’s total generation portfolio has crossed 25 GW as of mid-2025, with 65% of this capacity coming from renewable sources like solar, wind, and hydro power. The company’s operational renewable energy capacity stands at around 6.9 GW, while its conventional thermal and hydro generation capacity is approximately 8.9 GW. Tata Power also operates India’s largest solar cell and module manufacturing plant in Tamil Nadu, with a rated capacity of 4.3 GW, and supplies over 64 billion units of electricity to the grid annually.
Future Plans
Tata Power’s future plans focus on aggressive expansion in renewable energy, targeting 70% of total capacity from green sources by 2030. The company is investing in utility-scale solar, wind, hybrid and battery storage projects, aiming for 23 GW of renewable capacity, millions of rooftop solar installations, and 400,000 EV charging points by 2027. Tata Power also plans to enter new areas like green hydrogen, pumped hydro, and digital “Energy as a Service” platforms, while strengthening India’s cross-border clean energy projects and partnering for advanced storage and nuclear opportunities.
Financial Prospects of the Company
The market capitalization of the company is 1,26,695 crores
The current stock price is 396
The price-to-earnings (P/E) ratio is 30.8
The book Value (PB) of the company is 112
The price-to-book value (PB x PE) of the company is 109
The return on equity (ROE) is 11.0%
The return on capital employed (ROCE) is 10.8%
The company pays an annual dividend yield of 0.58%
Sales & profit of the company in the last 5 years
In FY 2020-21, the sales were 32,703 crores and profits were 1,439 crores. In FY 2021-22, sales were 42,816 crores and profits were 2,156 crores. In FY 2022-23, sales were 55,109 crores and profits were 3,810 crores. In FY 2023-24, sales were 61,449 crores and profits were 4,280 crores. In FY 2024-25, sales were 65,478 crores and profits were 4,775 crores.
Sales & profit growth in the last 5 years
In the last 5 years, sales growth was 17.6% and profit growth was 45.5%. In the last 3 years, sales growth was 15.2% and profit growth was 20.6%. In the last 1 year, sales growth was 4.23% and profit growth wa s12.2%.
Investors
Shareholding Patterns
The promoter holds 46.86%, FIIs hold 10.05%, DIIs hold 15.95%, Government holds 0.33%, Public holds 26.82%
Company News
Tata Power recently announced a significant collaboration to co-develop 838 MW capacity wind energy projects with Suzlon Group, reinforcing its leadership in India’s renewable energy transition. This partnership supports Tata Power Renewable Energy Limited’s ambitious goal of contributing to India’s 500 GW renewable capacity target by 2030. The projects span multiple states, including Karnataka, Maharashtra, and Tamil Nadu, and involve the supply and installation of wind turbine generators. This marks the third major collaboration between Tata Power and Suzlon in over a decade, highlighting a strong strategic partnership. Additionally, Tata Power and Tata Passenger Electric Mobility Limited unveiled India’s largest MegaCharger Hub for electric vehicles in Mumabai, underlining their commitment to expanding EV infrastructure.
Technical Analysis
Company Chart
Moving Average (MA)
The stock is trading just above the 50-day moving average, which indicates a relatively weak bullish trend.
The stock is trading near the 200-day moving average, indicating that it can either rise or fall.
Chart Patterns
The chart patterns show that after the consolidation, the stock is slowly moving in an upward direction.
Relative Strength Index (RSI)
Currently, the RSI of the stock is 59, which indicates that the stock is neither in in overbought zone nor in oversold zone.
Strengths & Weaknesses of the Company
Strengths
Extensive and diversified energy portfolio including thermal, hydro, solar, and wind energy.
Strategic partnerships and joint ventures enhancing market reach and technological capabilities.
Leading presence in renewable energy with a significant and growing clean energy capacity.
Low-cost provider with access to hydro and solar energy, providing competitive advantage.
Strong financial position with efforts to reduce debt burden and improve profitability margins.
Weaknesses
High operational costs are impacting profitability margins, with operating expenses rising significantly.
Dependence on regulatory approvals for project expansions is causing delays.
Exposure to financial risks due to currency fluctuations affects financial stability.
Limited global presence compared to bigger international energy giants.
Challenges in upgrading aging infrastructure, with about 60% of assets over 25 years old, and increasing maintenance costs.