ADANIPOWER vs TATAPOWER
Side-by-side comparison of Adani Power Ltd. and Tata Power Co. Ltd.. Descriptive only — not investment advice.
Adani Power Ltd.
Power
Quality Score: 53/100
Tata Power Co. Ltd.
Power
Quality Score: 39/100
At a glance
| Metric | ADANIPOWER | TATAPOWER |
|---|---|---|
| Quality Score | 53/100 | 39/100 |
| P/E (trailing) | 34.0 | 36.6 |
| Forward P/E | 26.7 | 26.7 |
| ROE | +20.9% | — |
| Profit margin | +23.7% | +5.9% |
| Debt-to-equity | 82.33 | 156.16 |
| Dividend yield | — | +0.52% |
| 1Y price return | +110.2% | +15.7% |
| From 52w high | -3.9% | -6.7% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 1.71 | 2.42 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Adani Power (₹225.33) has surged 110% over the past 12 months and trades 51.7% above its 200-DMA, driven by a sharp earnings recovery (5-year EPS CAGR of 91.6%) and improving profitability metrics including ROE of 20.9%. The balance sheet carries an extremely high debt-to-equity of 82.33 with a rising debt trend, while the RSI at 75.54 signals technically overbought conditions following a 45% move in just three months.
Tata Power (₹434) is a diversified Indian power utility spanning thermal, solar, wind, and distribution, trading at a PE of 36.6 against a forward PE of 26.7, above larger-cap peers NTPC (PE 22.3) and POWERGRID (PE 20.2). Over the past 5 years, revenue contracted 9.4% and earnings contracted 25.2%, while the debt-to-equity ratio stands at 156.16 with a rising trend and zero FCF-positive years on record. The stock has risen 15.7% over 12 months and 19.1% over the past 3 months, with both 50-DMA and 200-DMA below current price and RSI at 55.4 (neutral zone).
Pros
- ✓ROE of 20.9% ranks 1st among 6 peers in the Power sector with data available, and has been above 15% in 4 of the last 5 years, indicating a sustained profitability recovery.
- ✓5-year earnings CAGR of 91.6% reflects a significant turnaround from prior loss years, with free cash flow positive in 3 of the last 5 years.
- ✓Forward PE of 26.7x is materially lower than the trailing PE of 34.0x, indicating that consensus estimates project continued earnings growth in the near term.
- ✓Mean analyst rating of 1.71 across 7 analysts (1–5 scale, lower = more constructive) reflects a constructive analyst stance, with 7 analysts covering the stock.
- ✓Recent price momentum is notable: +15.7% over 12 months and +19.1% over 3 months, with the stock trading above its 50-DMA (₹406.73) and 200-DMA (₹389.98), and only 6.65% below the 52-week high.
- ✓Tata Power has an active renewable energy pipeline including a 404 MW Bhutan hydro partnership announced in May 2026, reflecting continued capacity expansion into clean energy.
- ✓Forward PE of 26.7 represents a meaningful compression from the trailing PE of 36.6, implying consensus earnings recovery expectations embedded in current analyst projections.
- ✓Analyst mean rating of 2.42 across 24 analysts (1–5 scale, lower = more constructive) indicates coverage is distributed toward the constructive end of the scale.
Cons
- ✗Debt-to-equity of 82.33 with a rising debt trend is an extreme leverage profile; a sustained rise in interest costs or a tariff-rate shock could materially impair debt-service capacity.
- ✗Revenue growth over 5 years is -0.1%, indicating that the earnings recovery has been driven by margin and restructuring rather than top-line expansion, leaving growth dependent on rate environment and capacity utilisation.
- ✗Quality score of 41/100 ranks 2nd of 6 peers but reflects meaningful deficiencies in balance-sheet strength; FCF was positive in only 3 of 5 years despite earnings recovery.
- ✗Nearest key support at ₹144.65 is 35.8% below the current price of ₹225.33; resistance levels are absent in the data, leaving the upper bound of the current trading range undefined.
- ✗D/E of 156.16 with a rising debt trend and zero FCF-positive years reflects the most leveraged and cash-generative-deficient profile in the peer group, creating refinancing and interest-coverage vulnerability.
- ✗5-year earnings contraction of 25.2% and revenue contraction of 9.4% indicate that growth has not materialized over the measurement window despite significant capital deployment.
- ✗Quality score of 9 out of 100 ranks TATAPOWER last among the 6-company peer group (peer range: 23–52 for ADANIPOWER through POWERGRID), with consistency score of 35 and zero years of ROE above 15%.
- ✗Profit margin of 5.87% is thin for a capital-intensive sector; at current leverage levels, any revenue softness or interest-rate increase directly compresses the narrow margin available to equity.
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