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Tata Power Company Limited (TATAPOWER) Fair Value & Analysis

Utilities · IN · Market cap ₹1.2T (≈ $12.9B) · ISIN INE245A01021

What is Tata Power Company Limited really worth?

TP Tata Power Company Limited TATAPOWER · NSE
Price₹368.00
Fair Value₹315.22
Upside−14.3%
Quality33/100

Below-average quality, and trading another 17% above our fair value of ₹315.22.

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Risks

!Expensive Growth (revenue 5y +13.8 %/yr)
!Thin margins · 6.0% net margin
!High debt · negative free cash flow
!Trails peers (3/13)
!Narrow moat 41/100
!Evidence only medium, so the estimate is less certain
!Weak on valuation: 14 out of 100
!Weak on balance sheet: 22 out of 100

For context

·0.68% dividend yield
Evidence: Medium Range ₹220.64 – ₹409.77

Fair value as of: Sep 5, 2026

From 16 valuation models · updated today

Fair value updated Sep 5, 2026, revised from ₹175.12 to ₹315.22 (+80.0%) since Aug 13, 2026. Share price −3.9% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • A fairly wide model range (₹220.64 to ₹409.77) leaves room in how you read the outcome.
  • The price sits in the upper half of our model range, so the margin of safety is thin.
  • Read the verdict with care: some models are missing inputs, so the estimate scatters more than usual.

Price vs Fair Value (5 years)

₹479.69 ₹98.29 Fair Value ₹315.22 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 5, 2026.

How to read this chart

60‑month range ₹98.29 – ₹479.69 · fair‑value band ₹220.64 – ₹409.77 · the ₹368.00 price screens above the ₹315.22 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 5, 2026.

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Analysis

Tata Power Company Limited (TATAPOWER) currently trades at ₹368.00, while our model-based Fair Value estimate is ₹315.22, implying the stock looks roughly 16.7% overvalued today. The Quality Score stands at 33/100 (below-average quality), in the Utilities sector. Bull case: the Multiples group reads highest at a median of ₹199.36 per share, and 0 of the 16 models we run sit above the ₹368.00 price. Bear case: the Dividend Discount group reads lowest at ₹38.69, and 16 of the 16 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Tata Power Company Limited generated revenue of ₹624B at a net margin of 6.0%. Revenue declined 12.8% year over year. It earns a return on equity of 11.3%. Net debt stands at ₹625B. Fundamentals as of Sep 5, 2026

Our scenario range runs from ₹220.64 (bear case) to ₹409.77 (bull case); at ₹368.00, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 21% below its 52-week high and 7% above its 52-week low, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at −51% fair-value upside, at −14%, TATAPOWER screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹3.96 per share, which is 1.3 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income best evidence ₹108.63 ₹120.66 ₹201.09 74
EPV ₹61.62 ₹98.99 ₹132.20 72
ROIC Compounder ₹61.62 ₹98.99 ₹145.23 70
All 16 models by family
Earnings-Based
Graham-Dodd ₹79.74 ₹302.71 ₹409.83 64
Lynch FV ₹73.47 ₹104.96 ₹136.44 61
PEG = 1.0 ₹73.47 ₹104.96 ₹136.44 57
EPV ₹61.62 ₹98.99 ₹132.20 72
Dividend Discount
Gordon GGM ₹21.63 ₹47.23 ₹79.46 65
DDM Multi-Stage ₹21.63 ₹38.69 ₹49.22 66
Multiples
P/E Multiple ₹158.32 ₹211.09 ₹263.86 63
P/S Multiple ₹149.52 ₹199.36 ₹249.20 58
P/B Multiple ₹149.52 ₹199.36 ₹249.20 55
EV/EBIT ₹141.55 ₹238.77 ₹335.99 64
EV/EBITDA ₹157.26 ₹259.71 ₹362.16 65
EV/Revenue ₹85.81 ₹186.92 ₹288.03 51
Asset-Based
NCAV (Graham) ₹61.76 ₹82.75 ₹123.51 54
Economic Profit
Residual Income best evidence ₹108.63 ₹120.66 ₹201.09 74
ROIC Compounder ₹61.62 ₹98.99 ₹145.23 70
Growth Earnings
Growth-Adj P/E ₹122.58 ₹175.12 ₹227.65 67

Widest divergence: Multiples (₹199.36) versus Dividend Discount (₹38.69). Highest evidence: Residual Income (74).

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Key figures & financial health

P/E ratio 31.4
P/S ratio 1.89 P/E × margin
EPS (TTM) ₹11.71 price ÷ EPS = P/E 31.4
Dividend yield 0.7% payout 21.3%
Net margin 6.0% FY2026
Return on equity 11.3% TTM
More key figures
Profitability
Return on assets (EBIT) 8.9% avg 5y
Operating margin 11.6% TTM
Growth
Revenue (TTM) ₹624B TTM
Revenue growth (YoY) −12.8% 3y avg +4.2%
EPS growth (YoY) −4.6%
Balance sheet & cash flow
Free cash flow −₹110B FY2026
Net debt ₹625B FY2026

Figures from reported company fundamentals · as of Sep 5, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 33/100

Of which business quality 31 · Market factors (momentum, volatility) 51

Profitability 28
Margins and returns on capital today
Quality Growth 33
Are margins and returns improving?
Cashflow 10
Earnings quality: real cash, not paper profit
Fin. Strength 15
Balance sheet, leverage, solvency risk
Investment 30
Disciplined investing over empire-building
Low Volatility 93
Calm price path (market factor)
Momentum 36
Price trend over the last 3–12 months (market factor)
52W Momentum 26
Distance to the 52-week high (market factor)
Net Issuance 89
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

The Tata Power Company Limited engages in the generation, transmission, distribution, and trading of electricity in India and internationally. It operates through four segments: Thermal & Hydro, Transmission & Distribution, Renewables, and Others.

Full company description

The Tata Power Company Limited engages in the generation, transmission, distribution, and trading of electricity in India and internationally. It operates through four segments: Thermal & Hydro, Transmission & Distribution, Renewables, and Others. The company generates power from hydroelectric and thermal sources, such as coal, gas, and oil; and provides related ancillary services. It also engages in the operation of transmission and distribution networks; and sale of power to retail customers through distribution networks. In addition, the company offers project management contracts and infrastructure management, and property development services, as well as rents oil tanks. Further, it is involved in the generation of power from renewable energy sources, such as wind and solar; rooftop solar projects; electric vehicle charging stations; manufactures solar cells and modules; engineering, procurement, and construction; home automation solutions; and maintenance services. Additionally, the company trades in power and coal; generates and distributes power; hydro pump storage, coal mining, trading, shipping, and related infra business; and provides smart meter, consultancy, networking solution, shipping and coal handling, logistics, and equipment business and related services, as well as infrastructure for electric vehicles. As of March 31, 2026, the company had an installed generation capacity of 16,716 megawatt. The Tata Power Company Limited was founded in 1915 and is based in Mumbai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Tata Power Company Limited reported revenue of ₹624B in FY2026 versus ₹428B in FY2022, a compound +9.9%/yr. Reported net income was ₹37.5B in FY2026, compounding +21.1%/yr from FY2022.

Growth Quality 46/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹624B
Latest YoY
−4.7%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.2%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.8%
Avg. revenue growth/yr (22Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.6%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+28.9% (28.2 + 0.7)
Revenue +9.9%/yr
FY22 ₹428B
FY23 ₹551B
FY24 ₹614B
FY25 ₹655B
FY26 ₹624B
Net income +21.1%/yr
FY22 ₹17.4B
FY23 ₹33.4B
FY24 ₹37.0B
FY25 ₹39.7B
FY26 ₹37.5B
Character of growth · EPS growth decomposed (2015-2026) +22.6 % p.a.
Revenue per share +8.2 %

of which total revenue +8.5 % · buybacks/dilution −0.3 %

EBIT margin −3.1 %
Tax rate +5.1 %
Residual (interest, one-offs) +11.3 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

TATAPOWER screens 17% overvalued. Compare with Constellation Energy Corporation →

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Cite: Fair Value Calculator (2026). "Tata Power Company Limited Fair Value". https://www.fairvalue-calculator.com/stock/TATAPOWER

Peer Group

Utilities - Independent Power Producers · 77 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 33 · Bottom 25%
Fair Value upside −14% · Below median
Return on equity (TTM) 11% · Top 25%
Return on assets 3% · Above median
Net margin (TTM) 6% · Below median
Operating margin (TTM) 12% · Below median
Revenue growth −13% · Below median
Dividend yield (TTM) 0.7% · Bottom 25%
Debt / equity 1.56× · Higher than 75% of peers

Valuation Multiples vs Utilities - Independent Power Producers median · lower = cheaper

P/E (TTM) 31.4× · Pricier than 75% of peers
P/B 3.09× · Pricier than median
P/S (TTM) 1.95× · Cheaper than median
EV/EBITDA 12.8× · Pricier than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE14 · sector 17
FUTURE0 · sector 0
PAST45 · sector 30
HEALTH22 · sector 70
DIVIDEND14 · sector 52

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Utilities - Independent Power Producers stocks, each showing price versus our Fair Value estimate (as of Sep 5, 2026).

Stock Price Fair Value vs Fair Value
Constellation Energy Corporation CEG $285.05 $88.09 −69%
Vistra Corp VST $144.22 $50.39 −65%
Adani Power Limited ADANIPOWER ₹206.10 ₹75.57 −63%
CGN Power Co 003816 ¥4.33 ¥3.62 −16%
Gulf Development Public Company GULF 63.25 THB 39.25 THB −38%
NRG Energy, Inc NRG $109.51 $53.91 −51%
Adani Energy Solutions Limited ADANIENSOL ₹1,583 ₹342.02 −78%
Talen Energy Corporation TLN $365.07 $43.55 −88%
Datang International Power Generation Co 601991 ¥5.89 ¥4.95 −16%
Huaneng Power International, Inc 600011 ¥6.92 ¥9.14 +32%

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Frequently asked questions

Is Tata Power Company Limited (TATAPOWER) overvalued or undervalued?
As of Sep 5, 2026, our model estimates a fair value of ₹315.22 versus a price of ₹368.00, about −14% upside (overvalued).
What is the fair value of TATAPOWER?
Our model-based fair value for Tata Power Company Limited is ₹315.22 (as of Sep 5, 2026), built from audited fundamentals. The current price: ₹368.00.
What is the quality score of TATAPOWER?
Tata Power Company Limited has a Quality Score of 33/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Tata Power Company Limited (TATAPOWER)?
Tata Power Company Limited reported trailing-twelve-month revenue of about ₹624B (latest available figure, as of Sep 5, 2026).
What is the net profit margin of TATAPOWER?
The net profit margin of Tata Power Company Limited is about 6.0%, meaning it keeps roughly 6.0% of revenue as net income. Based on the latest reported figures.
Does Tata Power Company Limited pay a dividend?
Tata Power Company Limited currently shows a dividend yield of about 0.68% relative to its recent price (as of Sep 5, 2026).
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