1. At a Glance
India’s oldest electricity house is now plugging into the future with batteries, solar panels, and EV chargers. Tata Power’s grid game just got electrified with a big BESS deal from NHPC, and its ₹1.3L crore market cap is buzzing louder than a power transformer in monsoon.
2. Introduction with Hook
If Thomas Edison had a desi cousin, it’d be Tata Power—quietly running our fans while plotting an EV future.
- New Deal Signed: 120 MWh BESS project in Kerala with NHPC—TPREL’s first standalone Battery Energy Storage Purchase Agreement (BESPA).
- Renewables Game Strong: 10.9 GW of green capacity, 5.6 GW already operational.
- Ambition Level: Achieve carbon neutrality before 2045. Probably before you get your next discom bill corrected.
3. Business Model (WTF Do They Even Do?)
Tata Power = Everything from plugging in your toaster to charging your Tesla.
- Generation: Thermal + Solar + Wind
- Transmission & Distribution: Serving 12.5M customers in Delhi, Odisha, Mumbai
- Solar Rooftops & EPC: Giant in commercial solar installations
- EV Charging: Target of 1 lakh charging points by 2025
- Power Trading + Smart Grid: Because old-school wires are too basic now.
4. Financials Overview
Consolidated FY25 (Rs Cr):
| Metric | Value |
|---|---|
| Revenue | ₹65,478 |
| Operating Profit | ₹12,166 |
| Net Profit | ₹4,775 |
| OPM | 19% |
| ROE | 11% |
| ROCE | 11% |
| EPS | ₹12.43 |
| Dividend Yield | 0.54% |
Growth:
- 5Y Sales CAGR: 18%
- 5Y Profit CAGR: 46%
The company’s books are literally glowing.
5. Valuation
Current Price: ₹410
Book Value: ₹112
P/E: 35
Valuation Models:
| Method | Fair Value Estimate |
|---|---|
| DCF | ₹370 – ₹460 |
| EV/EBITDA Multiple | ₹390 – ₹450 |
| SOTP (incl. EV biz) | ₹420 – ₹500 |
FV Range: ₹370 to ₹500
At ₹410, Tata Power is fairly valued but future-ready—like buying a power bank you may not need today but can’t live without tomorrow.
6. What’s Cooking – News, Triggers, Drama
- July 18, 2025: Signed its first ever Battery Energy Storage Purchase Agreement (120 MWh) with NHPC for Kerala’s state grid.
- Rajnandgaon Project: 100 MW solar + 120 MWh battery with SECI.
- Capex Mode: Mega expansion in renewables, especially in solar rooftops and EV infra.
- Carbon Neutral Pledge: Net-zero before 2045. Will your local power company even survive till then?
7. Balance Sheet
| Metric | Mar 2025 |
|---|---|
| Equity | ₹320 Cr |
| Reserves | ₹35,521 Cr |
| Borrowings | ₹62,866 Cr |
| Total Liabilities | ₹1,56,193 Cr |
| Fixed Assets | ₹78,374 Cr |
| Cash on Hand | ₹12,680 Cr |
Verdict: Gearing up with debt, but assets and reserves are keeping it shockproof. Power infra ain’t cheap.
8. Cash Flow – Sab Number Game Hai
| Cash Flow Area | FY25 (₹ Cr) |
|---|---|
| Operating | ₹12,680 |
| Investing | -₹15,436 |
| Financing | ₹4,292 |
| Net Flow | ₹1,536 |
Cash from ops is surging. But so is capex. Good problem to have. Like eating healthy but overspending on almonds.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROCE | 11% |
| ROE | 11% |
| Debt/Equity | ~1.5x |
| Interest Coverage | 2.3x |
| Debtor Days | 32 |
| Cash Conversion Cycle | 32 days |
Takeaway: This isn’t a startup throwing tantrums. It’s an old dog with new (EV) tricks and healthy bones.
10. P&L Breakdown – Show Me the Money
| Year | Sales (₹ Cr) | PAT (₹ Cr) | OPM (%) | EPS (₹) |
|---|---|---|---|---|
| FY22 | ₹42,816 | ₹2,156 | 16% | 5.45 |
| FY23 | ₹55,109 | ₹3,810 | 14% | 10.44 |
| FY24 | ₹61,449 | ₹4,280 | 17% | 11.57 |
| FY25 | ₹65,478 | ₹4,775 | 19% | 12.43 |
Revenue up. Profits up. Margins up. In short: “Upar hi upar jaayega.”
11. Peer Comparison
| Company | CMP ₹ | P/E | ROE % | OPM % | Debt/Equity |
|---|---|---|---|---|---|
| Tata Power | ₹410 | 35.0 | 11.0 | 19% | ~1.5x |
| Adani Power | ₹593 | 17.9 | 25.7 | 38% | 1.8x |
| Torrent Power | ₹1,372 | 23.2 | 20.1 | 18% | ~1.2x |
| CESC | ₹180 | 17.5 | 11.7 | 15.8% | <1x |
| Reliance Infra | ₹392 | 3.6 | 37.5 | 15.9% | >2x |
Tata Power = Balanced player. Not a cheapo like Reliance Infra. Not a margin king like Adani. But definitely not boring.
12. Miscellaneous – Shareholding, Promoters
| Category | % Holding (Mar 2025) |
|---|---|
| Promoters | 46.86% |
| FIIs | 9.38% |
| DIIs | 15.87% |
| Public | 27.57% |
- Retail trust is rising steadily
- Mutual funds nibbling quietly
- Promoters stable at 46.86% (unchanged for years = conviction)
13. EduInvesting Verdict™
Tata Power isn’t just selling you electricity—it’s powering the future. With India’s EV wave rising and battery storage becoming mainstream, this 100+ year old company is acting more startup than legacy. Yes, the P/E is on the expensive side, but growth visibility, clean energy pivot, and government tailwinds could light up the runway.
A silent compounding story hiding in plain sight.
Metadata
– Written by EduInvesting Research Team | July 18, 2025
– Tags: Tata Power, Renewable Energy, BESS, EV Infra, NHPC, Green Energy, Battery Storage, Clean Energy India
