Tata Power Company Limited
Know the company
Tata Power Company Limited (TPCL), headquartered in Mumbai, is India’s largest integrated power company and a key enterprise of the Tata Group – the country’s largest multinational conglomerate. Established in 1910 as Tata Hydroelectric Power Supply Company Ltd, Tata Power has a legacy of over a century in the energy sector. Currently, the Tata Group holds a 46.86% stake in the company. With operations spanning India and many international markets, Tata Power has built a strong reputation in electricity value chain such as generation, transmission, distribution, and energy solutions.
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TPCL has an installed generation capacity of 14,707 MW, comprising both conventional and non-conventional sources. Out of this, 5,847 MW, or 40%, comes from green energy sources, making Tata Power a leader in renewable energy producer in India. Its generation mix includes solar (3,490 MW), wind (880 MW), hydro (443 MW), thermal (10,034 MW including international capacity), and waste heat recovery.
Tata Power’s business is structured into distinct clusters. The Renewables cluster includes utility-scale solar, wind, hybrid assets, and solar module manufacturing. The New-age Energy Solutions segment focuses on rooftop solar, electric vehicle charging, home automation, and microgrids. The Transmission & Distribution cluster manages over 6,277 circuit kilometers of transmission lines and serves around 12.5 million customers in major cities including Mumbai, Delhi, Odisha, and Ajmer. The Generation cluster oversees large-scale hydro and thermal assets across India.
Internationally, Tata Power operates in countries such as Singapore, Indonesia, South Africa, Zambia, Georgia, Mauritius, and Bhutan, with activities in coal mining, logistics, and power generation.
Strengths
Tata Power Company Limited stands as one of India’s most significant power sector players, with a unique blend of legacy, innovation, and commitment to sustainability. As an integrated power utility, the company operates across the entire energy value chain—from generation and transmission to distribution and energy solutions. This integrated approach positions Tata Power as a key contributor to India’s clean energy ambitions and its broader economic growth. The company has pioneered several industry firsts, including India’s first 500 MW unit at Trombay, the first 150 MW pumped storage plant at Bhira, and the introduction of flue gas desulphurization for pollution control.
One of its primary strengths lies in its holistic service portfolio that includes conventional and renewable power generation, EPC services, grid solutions, rooftop solar, electric vehicle (EV) charging, and smart home energy automation. The company has made remarkable progress in commissioning large-scale utility renewable projects, with its clean and green segment currently generating over 11,700 million units of electricity from a 6.7 GW operational capacity. Moreover, the company has 10 GW of additional projects under execution, which will take its total clean energy capacity to 16.7 GW.
Significant capital investments reflect TPCL’s forward-looking vision. The company has been spent Capex of around Rs 2,2000 crore in the last financial year. These investments are directed towards key growth areas such as renewable energy, group captive projects, solar manufacturing capacity (notably the 4 GW plant), and ongoing transmission and distribution (T&D) infrastructure. Many of these projects are structured on a return-on-equity (ROE) basis, ensuring that once capitalized, they begin contributing to the company’s financial returns.
The company’s 4 GW solar cell line at Tirunelveli, Tamil Nadu expected to add strength to India’s domestic solar supply chain and enhance energy independence. Tata Power’s rooftop solar business has seen rapid growth, reporting Rs 509 crore revenue in Q3 FY25 alone and Rs 1,346 crore over the nine-month period ended December, 2024 —an impressive 22% year-on-year increase. With nearly 2.5 GW of installed rooftop capacity nationwide, the company’s ‘GharGhar Solar’ initiative is successfully expanding into Tamil Nadu following its rollouts in Rajasthan, Uttar Pradesh, Kerala, and Chhattisgarh. Tata Power is well on track to achieve its ambitious goal of 30 lakh rooftop installations by 2030, in alignment with the government’s Rs 75,000 crore PM Surya Ghar Muft Bijli Yojana initiative.
A major strength of Tata Power is its strategic alignment with evolving government policies. The company is proactively positioned to benefit from policy-level developments, such as increased funding for rooftop solar under the PM Surya Ghar program and the planned amendment of the Nuclear Power Act. The latter development is particularly significant, as it opens the door for private sector participation in nuclear power generation—a field Tata Power is actively looking to explore. Once policy clarity emerges around fuel sourcing, waste management, and technology partnerships, the company plans to act decisively in establishing small modular nuclear reactors.
In addition to generation, Tata Power maintains a strong presence in transmission and distribution (T&D), reinforcing its position as a full-spectrum energy solutions provider. The company owns and operates over 6,277 circuit kilometers of transmission lines, and has recently secured four major transmission project bids. Construction on these projects is progressing rapidly, and most are expected to be completed by FY26.
The company’s proactive embrace of new-age technologies is another key strength. Smart meters, digital monitoring systems, and energy storage innovations are being deployed to improve energy efficiency and reliability. These technologies also support India’s national commitment to achieving 500 GW of non-fossil fuel capacity by 2030.
The rapid growth in EV adoption has also opened up new avenues. Tata Power, with its robust EV charging infrastructure and partnerships, is uniquely positioned to capitalize on this shift towards sustainable mobility.
Financial performance also underpins Tata Power’s operational strengths. For the Q3FY25, its renewable business EBITDA grew by 38%, with corresponding increases in profit after tax, underlining both efficiency and profitability. The company’s solar manufacturing unit reported Rs 1,300 crore revenue in Q3 FY25 with EBITDA of Rs 226 crore and PAT of Rs 112 crore—clearly demonstrating the viability of its manufacturing business.
Tata Power’s T&D business continued to perform strongly, backed by capex investments of over Rs 3,000 crore during the first nine months of FY25. The segment recorded a 7% year-on-year growth in profit after tax (PAT), reaching Rs 370 crore in Q3FY25, and a 32% growth in nine-month PAT, rising to Rs 1,384 crore. This growth was driven by strong performances in the Odisha, Delhi, and Mumbai distribution networks. To expand its footprint further, the company secured four large strategic transmission projects in the past 10 months, collectively valued at approximately Rs 7,100 crore.
In Q3 FY25, Tata Power reported a net profit of Rs 1,187.54 crore, up 10.35% from Rs 1,076.12 crore in the same quarter last year. Revenue from operations grew 5% year-on-year to Rs 15,391 crore, compared to Rs 14,651 crore in Q3 FY24. The company maintains a healthy balance sheet, with net debt currently at Rs 44,700 crore. TPCL’s Key financial ratios remain robust, with a debt-to-equity ratio of 1.1:1 and net debt to underlying EBITDA below 3.
Outlook
India’s economic momentum has significantly increased energy demand, which rose by 7.4% to 1,626 billion units (BU), while peak power demand surged by 13% to a record 243 GW in FY24 (Source: CEA). Power consumption is directly linked to a country’s economic growth. India is expected to remain one of the fastest-growing major economies in the world, with GDP growth projected to exceed 6.5% over the next several years, expected to give immense growth opportunities for the power utilities companies going forward.
Over 70% of India’s capacity additions in FY24 came from renewable sources. The country’s total installed capacity has reached 442 GW, with renewables contributing 33% and hydro 11%. Notably, coal’s share fell below 50% for the first time, underscoring a major structural shift. Solar power led the renewable additions, accounting for 81% of all new green capacity, supported by both grid-scale and rooftop installations. Tata Power is well-aligned with this national transition. With clean energy currently forming 43% of its total generation capacity, the company aims to scale this to 70% by 2030. Ongoing renewable and solar manufacturing projects are key enablers of this transition. The rooftop solar segment is expected to see continued growth, with the company targeting installations in 3 million households across India, supported by government schemes such as the PM Surya Ghar Muft Bijli Yojana. Looking ahead, Tata Power’s management remains optimistic about growth prospects, particularly in renewables, transmission, and distributed energy solutions. P
olicy support through initiatives like the Revamped Distribution Sector Scheme (RDSS), along with increasing urbanization and electrification, are expected to drive long-term sectoral transformation. The company’s focus on clean energy, grid modernization, and customer-centric solutions positions it well for sustainable and profitable growth. With a strong presence in 20 locations across India and a growing clean energy footprint, Tata Power continues to lead the transformation towards a sustainable energy future.
Concerns
Power generation companies require large capital investments to expand capacity and upgrade infrastructure. While these investments are essential for growth, they also pose risks, especially for companies with already leveraged balance sheets. High debt levels can strain financial stability and impact returns if projected demand or tariffs do not materialize as expected.
As a sensitive industry, power companies operate under strict government regulations, which at times may be more favorable to consumers than to the companies themselves. Also a cause of concern.
The proposed entry into nuclear power could be delayed by regulatory hurdles and long approval timelines, with project gestation periods expected to be around 4–5 years. While the company is optimistic about policy changes enabling private participation, operational clarity is still evolving.
Sector: Power
Market Price: Rs. 383.70 as on today
FV: Rs 1/-
Stock Name: Tata Power Company Ltd
BSE Code: 500400, NSE Code: TATAPOWER
Market Cap.: Rs 121700 Cr
Book Value: Rs. 105
Segment: Electricity Generation and distribution
Incorporation: 1910
Headquarters: Mumbai, India
