At a Glance
Q1FY26 results? One word: ✨underwhelming✨. Power sales fell, profits barely flickered, and ₹165 Cr of electricity duty landed like a lightning bolt. Oh, and they spun off their non-regulated business to a new babyco. Because why not add some smoke to the mirrors?
1. 📢 Intro – Kya Power, Kya Legacy?
Founded in 1919, this is one of India’s oldest power players. But don’t let the heritage fool you — financially, it’s hanging on by the wires. ROE? 0.74%. OPM? What OPM? P/E? 200x. Yes, you read that right.
2. ⚙️ WTF Do They Even Do?
India Power has two faces:
- Regulated Biz (93%)
→ Power distribution in Asansol (WB), backed by WBERC
→ Also includes thermal generation for in-house use - Non-Regulated Biz (7%)
→ Renewable generation, smart grid, EV push, buzzwords
→ Transferred to IPCL Power in July 2025 via slump sale 🧾
3. 📊 Financial Snapshot – Q1FY26
| Metric | Q1FY25 | Q4FY25 | Q1FY26 |
|---|---|---|---|
| Revenue | ₹178.8 Cr | ₹136.7 Cr | ₹163.7 Cr |
| OPM | 8.3% | -67.1% (lol) | 3.5% |
| Net Profit | ₹2.75 Cr | ₹-1.87 Cr | ₹3.05 Cr |
| EPS | ₹0.03 | ₹-0.02 | ₹0.03 |
🎭 Performance is held up by ₹12 Cr Other Income. Remove that and we’re chilling with flat EBITDA and slightly warm losses.
4. 💥 What’s Cooking?
- 🔌 Electricity Duty Shock: ₹165.74 Cr liability dumped in Q1 (unpaid since 2012)
- 🪄 Slump Sale Drama: Non-regulated biz sold to newco (IPCL Power) for ₹18.5 Cr in equity shares
- 🎭 Other Income Circus: FY25 full-year ₹141 Cr in “non-operational income” (22x net profit)
5. 💸 Valuation – Crack or Cheap?
| Metric | Value |
|---|---|
| CMP | ₹14.4 |
| Book Value | ₹9.04 |
| P/B | 1.59x |
| P/E (TTM) | 200x (☠️) |
| ROE | 0.74% |
| Dividend Yield | 0.35% |
🎯 Fair Value Range: ₹9 – ₹12
Anything above that = Other Income FOMO. Below ₹9 = priced like what it actually earns.
6. 🧾 Balance Sheet – Less Power, More Pledging?
- Net Worth: ₹880 Cr
- Borrowings: ₹156 Cr (down from ₹3,800 Cr peak in FY17 — legit cleanup!)
- Promoter Pledging: 67.3% 🔴
Not much capex left. CWIP is only ₹10 Cr. Assets are old, cash flows older.
7. 💰 Cash Flow – Barely Blinking
| FY | CFO | FCF |
|---|---|---|
| FY25 | ₹79 Cr | ~₹43 Cr (post capex) |
| FY24 | ₹85 Cr | decent, but helped by working capital unwind |
No major disasters here, but no growth engine either.
8. 📉 Ratios – Flat as West Bengal’s Grid Voltage
| Metric | Value |
|---|---|
| ROE | 0.74% |
| ROCE | 3.17% |
| OPM | 3.5% (Q1FY26) |
| Interest Coverage | 1.25x (soft) |
| Working Capital Days | -30 (surprisingly lean) |
9. 💵 P&L – Drama-Free, But Barely Alive
Revenue stagnating around ₹600–₹650 Cr
Net Profit FY25 = ₹7 Cr
Compare that with ₹141 Cr in Other Income 😶
10. 🤼 Peer Comparison
| Company | P/E | ROE | OPM | Remarks |
|---|---|---|---|---|
| Tata Power | 32x | 11% | 17% | Growth + ESG play |
| CESC | 8x | 13% | 24% | Kolkata monopoly |
| India Power | 200x | 0.74% | 3% | Only flex = survival |
11. 🎭 Misc – Shareholding & Red Flags
- Promoter Holding: 59.47%
- FIIs/DIIs: 0.27% combined 😬
- Public: 40.25% – retail army getting trapped?
Over 1.1 lakh shareholders — someone’s selling the “green turnaround” dream 🫠
12. ⚠️ EduInvesting Verdict™
India Power is the classic case of:
“100-year-old company, 1-year-old earnings.”
The stock has survived, deleveraged, and done some corporate rejigs. But that P/E? Pure fantasy. The only power surge here is in “Other Income”.
Unless they revamp operations or monetize renewables meaningfully, this is more nostalgia than net gain.
🎯 Fair Value Range: ₹9–₹12
Anything above ₹14 = Paying for PR, not profit.
✍️ Written by Prashant | 📅 July 8, 2025
Tags: India Power Corporation, Q1FY26 Results, Electricity Duty, Discoms, Other Income, EduInvesting
