1. At a Glance – 107-Year-Old Discom Trading at 133x Earnings. Seriously?
Market Cap: ₹907 Cr
Current Price: ₹9.31
3-Month Return: -14.4%
P/E: 133
Price to Book: 1.03
ROE: 0.74%
ROCE: 3.17%
India Power Corporation Ltd (IPCL) is one of the oldest power utilities in India — incorporated in 1919. That’s pre-independence, pre-Instagram, pre-everything. Yet today, this 100+ year-old company is trading at 133 times earnings while delivering a ROE of less than 1%.
In Q3 FY26 (Dec 2025 quarter), revenue stood at ₹155.32 Cr. Net profit? ₹1.85 Cr. That’s a margin thinner than railway platform tea.
Operating margin was negative at -4.06%. Yes, negative.
And yet — the company boasts AT&C losses of just ~3.77%, collection efficiency of ~99%, and claims to be among the best-performing discoms in India.
So what’s happening here?
Is this a sleepy regulated utility quietly compounding?
Or a century-old legacy player stuck in regulatory crossfire?
Let’s switch on the main breaker and find out.
2. Introduction – The Asansol Monopoly That Doesn’t Print Money
India Power Corporation Ltd operates primarily in Asansol–Raniganj region of West Bengal with a licensed distribution area of 798 sq. km.
It has:
- 12 MW thermal plant in Dishergarh
- 2 MW solar plant in Jamuria
- 24.8 MW wind assets in Gujarat
- Heavy focus on smart meters and SCADA systems
Regulated business contributes 93% of revenue. Non-regulated just 7%.
Now here’s the irony.
Power distribution is usually:
- Stable
- Predictable
- Cash-flow heavy
IPCL is:
- Stable in operations
- Weak in returns
- Surrounded by litigation
The company sold 893.40 MU in FY25 versus 917.43 MU in FY24.
Customer base:
- FY25 end: 10,770
- Sep 2025: 11,448
So customers are increasing.
But earnings? Not so much.
Why is a century-old monopoly in a defined geography earning like a small kirana store?
Let’s break down the
